SH1612

Mesmerized and Annuitized

Annuities

Directions: Solve the following items.

1. Payments of 3,500 will be made at the beginning of every month for 20 years. If this annuity
is compounded monthly at an interest of 7.25%, solve for the future and present value of this
annuity.

2. Solve for the present and future value of an ordinary annuity if payments of 7,500 are made
every quarter for 15 years at 5% interest compounded quarterly.
3. Josh made payments amounting 25,000 every quarter for 12 years, to be compounded
quarterly at 4.5% interest. How much is the present value of this annuity if it will be
deferred for 2 years?

Mesmerized and Annuitized *Property of STI

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