What lump sum deposited today would allow payments of $2000/year for 7 years at

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Question
What lump sum deposited today would allow payments of $2000/year for 7 years at 5% compounded annually?
Options
A. 11572.71
B. 11876
C. 189756
D. 11576

Correct Answer

11572.71

Explanation

A=R[(1+i)^n-1]/i(1+i)^n

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Compound Interest problems

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1. Sharon Stone deposits $500 at the beginning of each 3 months in an account earning 10% compounded quarterly. Determine how much money she has after 25 years
Options
A. 22681.19
B. 23456
C. 44577
D. 25685

2. For S = $21,000, payments (R) of $1500 at the end of each 6-month periodi= 10% compounded semi-annually. Find the minimum number of payments to accumulate 21,000.
Options
A. 10
B. 11
C. 12
D. 13

3. The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
Options
A. 2
B. 3
C. 4
D. 5

4. The difference between simple and compound interests compounded annually on a certain sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
Options
A. 625
B. 635
C. 645
D. 655

5. Sharon Stone deposits $2000 at the end of each year in an account earning 10% compounded annually. Determine how much money she has after 25 years. How much interest did she earn?
Options
A. 146694.12
B. 13452
C. 18232
D. 15627

6. Kashundra Jones plans to make a lump sum deposit so that she can withdraw $3,000 at the end of each quarter for 10 years. Find the lump sum if the money earns 10% per year compounded quarterly
Options
A. 75263.64
B. 76345
C. 76389
D. 56897

7. 15 semiannual payments are made into a sinking fund at 7% compounded semiannually so that $4850 will be present. Find the amount of each payment rounded to the nearest cent
Options
A. 251.35
B. 245.45
C. 235.87
D. 251

8. A retirement benefit of $12,000 is to be paid every 6 months for 25 years at interest rate of 7% compounded semi-annually. Find (a) the present value to fund the end-of-period retirement benefit. (b) the end-of-period semi-annual payment needed to accumulate the value in part (a) assuming regular investments for 30 years in an account yielding 8% compounded semi-annually
Options
A. 245678
B. 234689
C. 281468.06
D. 234578

9. Find the finance charge for an average daily balance of $8431.10 with monthly interest rate of 1.4%
Options
A. 98.04
B. 88.04
C. 68.04
D. 118.04

10. A loan is made for $3500 with an interest rate of 9% and payments made annually for 4 years. What is the payment amount?
Options
A. 8906
B. 1089
C. 1070
D. 1080.34

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