1. A certain sum of money amounts to Rs.2403 years and 2706 years find the sum of money invested at the rate of interest

Select the term that best fits each of the following definitions and descriptions.

____ 21. Receivables that are evidenced by a formal written promise to pay a certain sum of money at a specified date.

____ 22. The date the principal amount of a note is due to be paid.

____ 23. The sum of future receipts or payments discounted to the present date at an appropriate rate of interest.

____ 24. A method of recognizing the estimated losses from uncollectible accounts as expenses during the period in which the sales occur.

____ 25. A note that is legally transferable by endorsement and delivery.

____ 26. Any receivable arising from transactions that are not directly associated with the normal operating activities of a business.

____ 27. A note written in the form where the face amount includes the interest charges.

____ 28. The borrowing of money with receivables pledged as security on the loan.

____ 29. A note written in the form where the maker promises to pay the face amount plus interest at a specified rate.

____ 30. An unconditional written promise to pay a certain sum of money at a specified time.

using the annuityformula:

F = (Pn/r)[(1 + (r/n))^nt+1 − 1]

where:

F is the future value of ALL of theinvestments/loans, including interest.

• P is the principal amount invested or paid at the beginning ofeach period.

• r is the annual interest rate, written as a decimal (ex: 6%=.06).

• n is the number of times that interest is compounded peryear.

• t is the number of years the money is invested orborrowed.

Suppose you invest P at the beginning of each month in aretirement account in hopes to save $600,000 for retirement at theage of 65. For both the annual rates r = 3.2% and r = 8.05%,compounded monthly, find the amount of money you will need toinvest per month:

A. if you start this process as soon as you turn 23 (so youinvest for 42 years total).

B. if you start this process as soon as you turn 30 (so youinvest for 35 years total).

C. if you start this process as soon as you turn 40 (so youinvest for 25 years total).

Determine the current amount of money that must be invested at 12% interest compounded monthly to provide an annuity of $10,000 per year for 6 years, starting 12 years from now. The interest rate remains constant over this entire period of time.