1. Mark made ordinary annuity payments of $15 per month for 16 years, earning 4.5% compounded monthly.
a. How much will be the accumulated value (future value) after 16 years? __________
b. How much of the accumulated value is interest? _____________
2. A loan was repaid over seven years by end-of-month payments of $450. If interest was 12% compounded monthly, how much interest was paid? _____________
3. What sum of money can be withdrawn from a fund of $15,750 invested at 4.25% compounded semiannually, if the money is withdrawn at the end of every month for 12 years?
4. A $92,000 mortgage with a 25-year term is repaid by making payments at the end of each month. If interest is 5.8% compounded semiannually,
a. how much are the payments? _____________
b. how much interest will be paid? _________________