Homework Answers

ho drill 6-2 (510 minutes)

(a)| Simple worry of $2,400 ($30,000 X 8%) per year X 8| $19,200|
| Principal| 30,000|
| entirety pull back| $49,200|
| | |
(b)| Interest compounded annuallyâ€"Future quantify of1 @ 8% for 8 periods| 1.85093|
| | X $30,000|
| Total withdrawn| $55,527.90|

(c)| Interest compounded semiannuallyâ€"Future apprize of 1 @ 4% for 16 periods| 1.87298|
| | X $30,000|
| Total withdrawn| $56,189.40|

EXERCISE 6-4 (1520 minutes)

(a)| Future prise of an average annuity of $5,000 a period for 20 periods at 8%|

$228,809.80|

($5,000 X 45.76196)|
| agentive role (1 + .08)| X 1.08| |
| Future value of an annuity due of $5,000 a period at 8%|
$247,114.58| |

(b)| feed value of an ordinary annuity of $2,500 for 30 periods at 10%|

$23,567.28|

($2,500 X 9.42691)|
| work out (1 + .10)| X 1.10| |
| Present value of annuity due of $2,500 for 30 periods at 10%| $25,924.00|

(Or see Table 6-5 which gives $25,924.03)|
(c)| Future value of an ordinary annuity of $2,000 a period for 15 periods at 10%| $63,544.96| ($2,000 X 31.



77248)|
| Factor (1 + 10)| X 1.10| |
| Future value of an annuity due of $2,000 a period for 15 periods at 10%|

$69,899.46| |
| | | |
(d)| Present value of an ordinary annuity of $3,000 for 6 periods at 9%| $13,457.76| ($3,000 X 4.48592)|
| Factor (1 + .09)| X 1.09| |
| Present value of an annuity due of $3,000 for 6 periods at 9%| $14,668.96| (Or see Table 6-5)|
EXERCISE 6-11 (1015 minutes)

(a)Total interest = Total paymentsâ€"Amount owed today
$155,820 (10 X $15,582) $100,000 = $55,820.

(b)Amos should borrow from the bank, since the 8% yard is lower than the...If you want to get a full essay, hallow it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .