Questions and Answers of Contemporary Business Mathematics with Canadian Ap

Suppose the total bond issue by Space Limited Company was $150 000 000 and they set up a sinking fund on December 22, 2021, for 20 years.Sinking funds are accounts that companies establish to ensure
A $5000, 14.5% bond with semi-annual coupons redeemable at par on August 1, 2030, was purchased on March 5, 2019, at 95.5. What was the approximate yield rate?
What is the approximate yield realized if the bond in Question 17 sells at 92 on August 7, 2025?Question 17A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2032, was
A $10 000, 7.5% bond with quarterly coupons, redeemable at par on October 15, 2032, was purchased on May 5, 2020, at 98.75. What is the approximate yield rate?
A $10 000 bond with 5% interest payable quarterly, redeemable at par on November 15, 2034, was bought on July 2, 2018, to yield 9% compounded quarterly. If the bond sells at 92.75 on September 10,
A $100 000 bond redeemable at par on October 1, 2040, is purchased on January 15, 2019. Interest is 5.9% payable semi-annually and the yield is 9% compounded semi-annually.(a) What is the purchase
A $25 000, 10% bond redeemable at par on December 1, 2030, was purchased on September 25, 2019, to yield 7.6% compounded semi-annually. Bond interest is payable semi annually.(a) What is the cash
A $50 000, 11% bond with semi-annual coupons redeemable at par on April 15, 2026, was purchased on June 25, 2019, at 92.375. What was the approximate yield rate?
A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2024, was purchased on October 12, 2017, to yield 7% compounded semi-annually. Determine the purchase price.
Four $10 000 bonds bearing interest at 6% payable quarterly and redeemable at par on September 1, 2028, were purchased on January 23, 2016, to yield 5% compounded quarterly. Determine(a) The premium
Three $10 000, 10.5% bonds with quarterly coupons redeemable at par on August 1, 2025, were bought on May 1, 2011, to yield 12% compounded quarterly. The bonds were sold on January 16, 2019, at 93.5.
A $100 000, 5% bond with interest payable semi-annually redeemable at par on July 15, 2031, was purchased on April 18, 2020, to yield 7% compounded semi-annually. Determine(a) The premium or
A $5000 bond with 8% interest payable semi-annually redeemable at par on June 1, 2031, was bought on December 1, 2017, to yield 9% compounded semi-annually. The bond was sold on September 22, 2021,
A $1000, 9.5% bond with semi-annual coupons redeemable at par on March 1, 2026, was purchased on September 19, 2017, to yield 7% compounded semi-annually. What was the purchase price?
A $5000, 4.5% bond with interest payable semi-annually is redeemable at par in 12 years. What is the purchase price to yield(a) 3% compounded semi-annually?(b) 5% compounded semi-annually?
1. How much would an investor have to pay for one of these bonds to earn 4.4% compounded semi-annually?2. (a) What is the size of the sinking fund payment?(b) What will be the total amount deposited
Mr. Brabham borrowed $7500 at 6% compounded monthly. He agreed to repay the loan in equal monthly payments over four years.(a) What is the size of the monthly payment?(b) How much of the 20th payment
The sale of a property provides for payments of $6000 due at the beginning of every three months for five years. If the payments are deferred for two years and interest is 9% compounded monthly, what
The purchase of preferred shares in a new software company guarantees a cash dividend of $32 per share at the end of its first year. However, the dividend is expected to decrease by 0.5% per year as
What would you be willing to pay for a preferred share of stock that promises to pay you a cash dividend of $25 at the end of each year, which will increase by 1% every year forever? The interest
Pharma Manufacturing is considering a medical process that is expected to reduce its annual operating costs by $60 000.00. What is the maximum amount of money that should be invested for the process
Barbara Katzman bought an income property for $280 000 three years ago. She has held the property for the three years without renting it. If she rents the property out now, what should be the size of
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $122.50 for two-and-a-half years. The first payment is due on the date of sale and
Gerald and Marysia bought a property by agreeing to make semi-annual payments of $12,500 for seven years. If the first payment is due on the date of purchase and interest is 9% compounded quarterly,
How much can be paid in scholarships at the end of each year if $150 000 is deposited in a trust fund and interest is 4.5% compounded annually?
1. How much allowance will each of the boys receive per month based on their parents’ assumptions of price increases?2. (a) How much money must Victor and Jasmine invest for each son on June 1 to
While Grant was in graduate school, he deposited $100 at the end of each month for five years into an account paying 6% compounded monthly. Once he started his first management job, he increased his
Alice invested $100 per month in an RRSP for 20 years. Her sister invested $1200 at the end of each year, also for 20 years. Suppose that both RRSP accounts can earn 4.5% compounded annually. How
A vacation property valued at $250 000 was bought for 15 payments of $22 000 due at the end of every 6 months. What nominal annual rate of interest compounded annually was charged?
Xavier put $50 000 down on his first condo. He borrowed the rest from his parents at an interest rate of 3.5% compounded weekly. For the first 10 years, he made weekly mortgage payments of $300
Saving for a new home, a man put aside $1500 at the end of every 3 months for five years while he was single. Once he got married, he and his wife increased the quarterly deposits to $1700 for the
Tracey purchased a new car with zero down payment and agreed to make payments of $360 at the end of each month for seven years. After five years, she found she needed a larger vehicle to accommodate
For two years, while she was a part-time student, Amy deposited $25 at the end of each month into a travel account paying 4% interest compounded monthly. Once she started her first full-time job, she
Grace already has $10 000 accumulated in her RRSP. If she contributes $1200 at the end of each quarter for the next 10 years, how much will she have in the RRSP at the end of the 10-year period if
Calculate the accumulated value in an RRSP account after 15 years under each of the following scenarios:(a) $2400 is invested annually at 10% compounded annually;(b) $600 is invested quarterly at 10%
If money can earn 4.0% compounded monthly, how long will it take you to accumulate $1 million in your RRSP if you contribute $1440 at the end of each month? What is the size of your last
Starting three months after her grandson Robin’s birth, Mrs. Devine made deposits of $60 into a trust fund every three months until Robin was 21 years old. The trust fund provides for equal
Mariana has been saving $200 per month for the past five years at an interest rate of 1.75% compounded monthly. If she continues to save, but she doubles her payment for the next five years, describe
To purchase a specialty guitar for his band, for the past two years J.J. Morrison has made payments of $92 at the end of each month into a savings account earning interest at 4.03% compounded
Watson Properties bought a rental property valued at $250 000 by paying 20% down and mortgaging the balance over 25 years through equal payments at the end of each quarter with interest at 10%
A mortgage of $265 000 is to be repaid by making payments of $15 600 at the end of every six months. If interest is 7% compounded semi-annually, what is the term of the mortgage?Answer the above
1. (a) What is the cash value of television A? Round your answer to the nearest dollar.(b) What is the cash value of television B? Round your answer to the nearest dollar.2. (a) Given Michael’s
In March 2020, Yves decided to save for a new truck. He deposited $500 at the end of every three months in a bank account earning interest at 5% compounded quarterly. He made his first deposit on
1. What fixed monthly payment is required to pay off a $5000 credit card balance in three years if the interest rate is 21.1% compounded monthly?2. What is the amount of interest you will pay?3. If
A promissory note for $600 dated May 15, 2021, requires an interest payment of $150 at maturity. If interest is 9% compounded monthly, determine the due date of the note.
If you borrowed $1000 on May 1, 2023, at 10% compounded semi-annually, and interest on the loan amounts to $157.63, on what date is the loan due?
Cindy started a registered retirement savings plan on February 1, 2016, with a deposit of $2500. She added $2000 on February 1, 2017, and $1500 on February 1, 2022. What is the accumulated value of
Scheduled payments of $1500 due today and $1500 due in three years are to be replaced by two payments. The first payment is due in one year and the second payment, which is double the size of the
On April 15, 2023, a 10-year note dated June 15, 2018, is discounted at 10% compounded quarterly. If the face value of the note is $4000 and interest is 8% compounded quarterly, calculate the
A six-year note for $1750 issued on December 1, 2018, with interest at 6.5% compounded annually, is discounted on March 1, 2021, at 7% compounded semi-annually. What are the proceeds of the note?
Ted deposited $1750 in an RRSP on March 1, 2018, at 3% compounded quarterly. Subsequently, the interest rate was changed to 4% compounded monthly on September 1, 2020, and to 4.5% compounded
A $2800 promissory note issued without interest for five years on September 30, 2019, is discounted on July 31, 2022, at 8% compounded quarterly. Calculate the compound discount.
Harpreet’s parents deposited a lump sum of money into a savings account for him on his tenth birthday at an interest rate of 5% compounded semi-annually. Three years later, they opened a new
A non-interest-bearing, eight-year note for $4500 issued August 1, 2019, is discounted April 1, 2023, at 6.5% compounded annually. Calculate the compound discount.
John invested part of his inheritance at 3.95% compounded monthly. After two years, the rate changed to 4.0% compounded quarterly. How much money did John originally invest if he currently has $30
A $40 000, 15-year promissory note dated June 1, 2014, bearing interest at 12% compounded semi-annually is discounted on September 1, 2022, at 11% compounded quarterly. What are the proceeds of the
Accumulate $1300 at 8.5% compounded monthly from March 1, 2020, to July 1, 2022, and thereafter at 8% compounded quarterly. What is the amount on April 1, 2025?
A ten-year promissory note for $1750 dated May 1, 2017, bearing interest at 4% compounded semi-annually is discounted on August 1, 2023, to yield 6% compounded quarterly. Determine the proceeds of
A debt of $800 accumulates interest at 10% compounded semi-annually from February 1, 2021, to August 1, 2023, and 11% compounded quarterly thereafter. Determine the accumulated value of the debt on
Compute the discounted value of $5000 due in 10 years and 2 months if money is worth 2.75% compounded weekly.
Determine m, i, and n for the following.8.1% compounded monthly for 15.5 years
A non-interest-bearing note for $1500 is due on June 30, 2024. The note is discounted at 10% compounded quarterly on September 30, 2020. What are the proceeds of the note?
Calculate the proceeds of $9000 due in 4 years and 11 months discounted at 8.25% compounded bi-weekly.
Determine m, i, and n for the following.12.25% compounded semi-annually for 54 months
Determine the proceeds of a ten-year promissory note dated April 1, 2017, with a face value of $1300, bearing interest at 7% compounded semi annually, discounted seven years later when money was
Determine m, i, and n for the following.10.75% compounded quarterly for three years and nine months
Determine the proceeds of a six-year, $900 note bearing interest at 10% compounded quarterly, issued June 1, 2017, discounted on December 1, 2022, to yield 8.5% compounded semi-annually.
The Canadian Consumer Price Index was approximately 98.5 (base year 1992) at the beginning of 1991. If inflation continued at an average annual rate of 3%, what was the index at the beginning of 2020?
Determine m, i, and n for the following.8% compounded monthly for 12.5 years
Determine m, i, and n for the following.4.8% compounded quarterly for 5 3/4 years
Scheduled payments of $400 due today and $721.28 due in eight months are to be settled by a payment of $500 six months from now and a final payment in 15 months. Determine the size of the final
A debt of $5000 is due November 1, 2028. What is the value of the obligation on February 1, 2022, if money is worth 7% compounded quarterly?
Determine m, i, and n for the following.11.5% compounded semi-annually for 13.5 years
Determine m, i, and n for the following.7% compounded monthly for four years
Determine the proceeds of a promissory note with a maturity value of $1800 due on September 30, 2022, discounted at 8.5% compounded semi-annually on March 31, 2019.
Determine the proceeds of a $4200, non-interest-bearing note due August 1, 2027, discounted on March 1, 2023, at 7.5% compounded monthly.
Determine m, i, and n for the following.7.4% compounded semi-annually for eight years
On December 2, 2023, Joan borrowed $2400, agreeing to repay the loan with blended payments of $292 per month, starting on January 2. Interest was charged at 7.8% per annum calculated on the monthly
Bryan buys a new washer/dryer set worth $3996. His first option is to pay for the appliances on his personal (unsecured) line of credit and pay it back after 6 months. His second option is to use a
At auction on June 22, 2021, $100 000, 91-day treasury bills were sold for $99 600. An investor purchasing one of these T-bills held it for 40 days, then sold it to yield 1.4%. (a) What was the
Compute the proceeds of a five-month, $7000 promissory note dated September 6, 2022, with interest at 5.5% if the note is paid on November 28, 2022, when money is worth 6.5%.
A BMO mutual fund manager purchased commercial paper with a face value of $2 000 000 from Aecon for $1 994 000. If the manager held the paper until its maturity 60 days later, what rate of return did
On November 1, 2023, Sonya purchases a leather chair advertised at $1980, including an offer to defer payment for eight months. If she does not agree to the eight month deferment, and money is worth
Determine the value of a $1300 noninterest- bearing note four months before its maturity date of July 13, 2021, if money is worth 7%.
What was the purchase price of a 30-day commercial paper note issued by Alectra Utilities Corporation with a face value of $750 000 if the current market interest rate was 2.15%?Answer the
Luigi purchases a new tablet computer during a sale that advertised, “No payment until 2023.” The payment contract that he signs states that he has agreed to pay $549 on February 10, 2023. If
On June 1, 2021, a four-month promissory note for $1850 with interest at 5% was issued. Compute the proceeds of the note on August 28, 2021, if money is worth 6.5%.
The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, was 0.96%. A client sold the $50 000 T-bill after 53 days. What rate of return (per annum) did the
Determine the maturity date for a 180-day non-interest-bearing note for $7200 issued on February 20, 2024. Then, calculate the present value on June 1, 2024, if money is worth 5.64%.
Calculate the present value of a four-month non-interest-bearing note for $2500 issued June 10, 2021, if money is worth 6.15%, on July 20, 2021.
What is the face value of a three-month promissory note dated June 18, 2022, with interest at 4.5%, if its maturity value is $950.89?
A six-month note for $19 300, with interest at 8%, is issued on April 1, 2022. Calculate the present value on June 20, 2022, if money is worth 7.2%.
A 95-day, 5.81% note for $3600 is issued October 28, 2021. If money is worth 6.27%, calculate the present value on November 30, 2021.
The maturity value of a seven-month promissory note issued July 31, 2021, is $3275. What is the present value of the note on the date of issue if interest is 7.75%?
A seven-month note dated November 1, 2023, earning interest at 7.5%, has a maturity value of $6000. Determine the face value of the note.
Grant bought a new lawn tractor on his credit card for $1998. He pays his credit card off in full each month so that he does not incur huge credit card interest on his purchases. This month he was a
A 150-day note with interest at 5% is dated June 28, 2022, and has a maturity value of $836.85. Determine the face value of the note.
Jamie borrowed $900 from the Essex District Credit Union. The loan agreement provided for repayment of the loan in four equal monthly payments plus interest at 12% per annum calculated on the unpaid
Compute the maturity value for a $350 promissory note issued on October 30, 2022, at 4.5% for 90 days.
1. Suppose Shannon and Duncan pay off their credit cards with their line of credit on April 20. They will make their monthly payments on the 20th of each month, beginning in May. Create a schedule

Showing 100 - 200 of 668