Practice Quiz - Section 3-3 (Form B) - Future Value of an Annuity; Sinking Funds

Multiple-choice exercise

Work out the problem on paper and then choose the letter for your answer. After you have successfully answered all questions, look at the top of the page to see how you did.

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Find the future value of an annuity if $3000 is deposited into an account each year for 4 years and the account pays 7.3% compounded annually.

$13379.12

$3976.68

$3962.98

None of the answers given; click to see the solution.

Question #1 asked you to find the future value of an annuity. Continuing with this problem, and using the correct answer for the future value, how much interest was earned during the 4 year period?

$1379.12

$876

$10379.12

None of the answers given; click to see the solution.

A company establishes a sinking fund in order to have $500,000 available in 8 years for the purchase of a piece of equipment. If the sinking fund pays 9.2% compounded annually, how much money must the company put into the account each year?

$45009.79

$5,554,346.71

$247,279.95

None of the answers given; click to see the solution.

Suppose you open an account into which you deposit $200 semi-annually for 10 years. If the account pays 13% compounded semi-annually, how much will be in the account at the end of the 10 year period?

$7765.06

$16,189.37

$2698.88

None of the answers given; click to see the solution.

A person is saving money each week in order to accumulate a $25,000 downpayment for a house. How much must this person deposit weekly into an account paying 13% compounded weekly if the downpayment is needed in 5 years?

$68.38

$13061.74

$3857.86

None of the answers given; click to see the solution.