AN7 Annuity Examples

The total cost of a car is 15,000. To purchase the car using a loan repaid by monthly installments, you are quoted the following terms.

Initial deposit 2,000
Term 4 years
Interest rate 6% a year
Payments monthly, at the end of each month.

What will your monthly payment be?

Last modified July 16th, 2019 by Team
Read more

AN6 Annuity Examples

Deposits are made into an investment account which pays an annual interest rate of 4%. Assuming each deposit has the same value, and is made at the start of each year, what will the each deposit need to be to accumulate 150,000 after 9 years?

Last modified July 16th, 2019 by Team
Read more

AN5 Annuity Examples

An annuity that will pay 2,500 a year for 8 years. If the first payment is made today and the discount rate is 5%, what is the annuity worth today?

Last modified July 16th, 2019 by Team
Read more

AN4 Annuity Examples

A bank informs you that if you invest 5,000 a year for 8 years into one of its investment accounts you will have accumulated 50,000 at the end of the 8 years. Assuming the payments are made at the end of each year, what is the annual interest rate on the account?

Last modified July 16th, 2019 by Team
Read more

AN3 Annuity Examples

A business borrows 100,000 now and repays it in 10 equal annual payments made at the end of each year. If the annual interest rate is 6%, how much will the annual payments be?

Last modified July 16th, 2019 by Team
Read more

AN2 Annuity Examples

If you deposit 5,000 at the end of each year for 21 years into an investment account which pays an interest rate of 4% a year, what will the account balance be worth at the end of the 21 years?

Last modified July 10th, 2019 by Team
Read more

AN1 Annuity Examples

If an annuity will pay 10,000 a year for 7 years (with the first payment made one year from today), and the discount rate is 8%, what is the annuity worth today?

Last modified July 10th, 2019 by Team
Read more

FV2 Future Value Example

What will 100,000 grow to be in 9 years if it is deposited today in an account with a nominal annual interest rate of 6% with monthly compounding of interest?

Last modified July 10th, 2019 by Team
Read more