What is the size of each payment

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Q1. Sara quit smoking and saves $80 per month previously spent on cigarettes. She invests the money at 5% compounded monthly. How much will she have in 10 years?

Q2. What amount will an investment be worth in 25 years if quarterly payments of $1,750 are made and the interest rate is 14% compounded quarterly for the first 15 years and 10% compounded quarterly for the final 10 years?

Q3. The rate of return offered by Reliance Insurance Co. on its 20-year annuities is 4.8% compounded monthly. What amount is required (PV), to purchase a 20-year annuity with month-end payments of $1000?

Q4. A purchase agreement for a $22,000 truck requires 60 equal monthly payments, what is the size of each payment if interest is 9% compounded monthly?

Reference no: EM132952938

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