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1. $300 is deposited at the end of each month into an ordinary annuity. If the account pays 3.2% compounded monthly, how much will be in the account after 10 years?

   1.   ?    $42360.90
   2.   ?    $42473.87
   3.   ?    $3036.26
   4.   ?    $412.96
   5.   ?    $401,334.69
   6.   ?    None of the answers given; click to see the solution.

2. You make annual payments of $1000 into an ordinary annuity paying 5% compounded annually. How much interest will the account earn in 4 years?

   1.   ?    $310.13
   2.   ?    $4310.13
   3.   ?    $1215.51
   4.   ?    $200
   5.   ?    None of the answers given; click to see the solution.

3. A company establishes a sinking fund in order to buy a piece of business equipment which will cost $50,000 in 3 years. The company will deposit money quarterly into an ordinary annuity paying 4.2% compounded quarterly. How much must they deposit each quarter into the account?

   1.   ?    $3931.49
   2.   ?    $16492.89
   3.   ?    $44109.71
   4.   ?    None of the answers given; click to see the solution.

4. You can afford monthly payments of $300 into an ordinary annuity account that pays 2.8% compounded monthly. How long will it be until the account contains $10,000? (Round to the next-higher month if not exact.)

   1.   ?    33 months
   2.   ?    1505 months
   3.   ?    24 months
   4.   ?    32 months
   5.   ?    None of the answers given; click to see the solution.

5. A person makes annual payments of $2000 into an ordinary annuity account. At the end of 4 years, the amount in the account is $8417.33. What annual nominal compounding rate has this annuity earned?

   1.   ?    3.4%
   2.   ?    43.23%
   3.   ?    40.9%
   4.   ?    None of the answers given; click to see the solution.