Question

Calculate the future value in each of the following situations:
a. Mrs. Langer purchases a Canada Savings Bond for $5,000 that pays 3 percent interest per year for eight years, compounded annually. How much will she receive when the bond matures in eight years?
b. Mr. Rhodes purchases a long-term investment for $70,000 that pays 5 percent interest per year for 12 years, compounded semi-annually. How much will he receive when the investment matures in 12 years?
c. Ricer Ltd. borrows $100,000 at 8 percent for four years. Interest and principal must be paid in full in four years, at the end of the term of the loan. How much will Ricer Ltd. have to pay the lender in four years?
d. Ms. Maynes lends her child $25,000 to help finance his education. The loan bears no interest, but must be repaid in six years. How much will Ms. Maynes receive from the child in six years?



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  • CreatedFebruary 26, 2015
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