1. What is the ending balance from an initial deposit of $4,250 at 12% compounded quarterly for 6 years?
2. Find the present value of $5,000 in 5 years at 10% compounded annually.
3. Find the value of an annuity in which $1,100 is deposited at the end of each year for 5 years, at an interest rate of 11.5% compounded annually.
4. Determine the amount of each payment to be made to a sinking fund in order to pay off a $120,000 loan in 8 1/2 years when the funds earn interest at a rate of 10% compounded semiannually.© BrainMass Inc. brainmass.com June 3, 2020, 8:09 pm ad1c9bdddf
The solution is comprised of detailed explanations on the calculation of present or future values of the annuity with compounding interest (see attachment).