# Unit 6 1) Use the simple interest formula method to find the future value of an

Unit 6 1) Use the simple interest formula method to find the future value of an ordinary annuity of \$3,500 paid annually after three years at 3.9% annual interest. Find the total interest earned Future annuity value is \$______________ 2) Harry Taylor plans to pay an ordinary annuity of \$6,000 annually for ten years so he can take a yearâ€™s sabbatical to study for a masterâ€™s degree in business. The annual rate of interest is 3.8%. How much will Harry have at the end of three years? How much interest will he earn on the investment after three years? At the end of three years Harry will have \$____________ 3) Which annuity earns more interest an annuity due of \$250 quarterly for two years at 8% annual interest compounded quarterly, or an annuity due of \$500 semiannually for two years at 8% annual interest compounded semiannually? Choose the correct answer below: A) The semiannual annuity yields more interest B) The semiannual and quarterly annuities yield equal interest C) The quarterly annuity yields more interest 4) What semiannual sinking fund payment would be required to yield \$46,000 nine years from now? The annual interest rate is 6% compounded semiannually. The sinking fund payment is \$___________. 5) What is the present value of an ordinary annuity with annual payments of \$670 at 7% annual interest for 25 years? The present value of an ordinary annuity is \$_________ 6) Janice and Terry Van Dyke have decided to establish a semiannual ordinary annuity of \$4,000 for the next twenty years at 12% annual interest compounded semiannually. How much should they invest in a lump sum now to provide the stream of payments? They should invest \$_________ Unit 7 Homework 1) The family budget is illustrated in the figure to the right. What is the total take home pay and what percent is allocated for transportation? The total take home pay is \$_________ The percent of the take home pay allocated for transportation is _______% 2) Find the mean for the amounts: \$17,484; \$14,987; \$13,521; \$14,600; \$18,580; \$14,993. The mean for the amounts is \$_____________ 3) Find the median for the scores 93, 69, 71, 86, 71, 95, 89, 74, 71, 89, 89, 96, 73, 75 The median is _____________ 4) Find the mode for the amounts; \$17,371; \$14,940, \$13,512; \$14,543; \$18,540; \$14,940. Select the correct choice below and fill in any answer boxes within your choice A) The mode(s) is/are \$__________ B) There is no mode 5) 6) 7) 8) 9) 10)