Author Question: Connie wants to have an annuity payment of 2,000 at the END of every three months. How much should ... (Read 168 times)

storky111 · **on:** Jun 24, 2018

Connie wants to have an annuity payment of 2,000 at the END of every three months. How much should she deposit now at 6 interest, compounded quarterly, to yield this payment for 3 years? (Use Table 12-2 in your text)
A) 21,815.02
B) 20,786.85
C) 21,577.10
D) 22,783.26

Question 2

Peter deposits 500 at the END of every month for 3 years in a savings account. The account pays 12 interest, compounded monthly. Peter calculates that the future value of the ordinary annuity is 21,538.44. What would be the future value if deposits were made at the BEGINNING of each period rather than the END? (Calculate the future value by formula)
A) 21,753.83
B) 25,734.44
C) 22,273.44
D) 22,349.85