1. Jack borrows $19,000 to be repaid in 6 equal year-end amounts over 6 years. If the interest rate is 5.5% per annum compounded quarterly, Jacks annual repayment is (rounded to nearest dollar; dont include the $ sign or commas):

2. Jack needs $5200 in 6 years from today to buy a holiday. He invests $2200 today. Find the effective annual rate of interest that Jack needs to earn on this amount (as a %, 2 decimal places) in order to reach his goal. (Solve using excel =RATE function; Answer in percentage to two decimals without the % sign e.g. 1.888 is 1.89)

3. You inherit $527,000. You can receive the $527,000 in one lump sum payment today or, alternatively, receive two amounts: $327,000 in 11 months and $220,000 in 21 months from today. If you can earn 4.2% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)?

4.You join a gym for 2 years on a payment plan that requires you to pay $1,000 today, $160 in 11 months from today and $720 in 18 months from today. Alternatively you could pay $1800 today. If the interest rate is 12.3%p.a. compounding monthly, what is the advantage that the payment plan has over the upfront payment? (expressed in present day value rounded to the nearest cent; do not show $ sign or comma separators; if the payment plan is more costly than $1,800 today, your answer will show a negative eg. -300.35

5.Suppose you will receive $14,000 in 10 months and another $8,000 in 22 months. If the discount rate is 5% per annum (compounding monthly) for the first 13 months, and 10% per annum (compounding monthly) for the next 9 months, what single amount received today would be equal to the two proposed payments? (answer to the nearest whole dollar; dont include the $ sign or commas)

6. Jill wants to buy a car but needs to calculate how much she can afford to borrow. The maximum she can repay each month-end is $660 per month and the bank has indicated it will charge a fixed 6.9% p.a compounding monthly. If she takes a loan for 5 years how much can she afford to borrow? (Do not use the $ sign or commas; include cents e.g 24500.09)

7.Payments of $14,000 per quarter are deposited into a fund at the end of each quarter for 8 years. If interest is 6.6% p.a. compounding quarterly, the size of the fund at the end of 8 years will be (to nearest dollar but dont include $ sign or commas):

8. Calculate the nominal interest p.a. compounded monthly that is equivalent to 3.7% p.a. compounded quarterly. (Correct your answer to the nearest 0.01%, e.g. 2.12%)

9. You lend Jack $8,000 and he agrees to repay you in equal year-end amounts over 2 years. If the interest rate is 11.2% per annum compounded quarterly, the annual repayment will be (rounded to nearest dollar; dont include the $ sign or commas):

10. You deposit 6,000 into your bank account every month starting in one month. You earn an interest rate of 6.9% p.a. compounded quarterly. How much will in your account after 5 years? (Correct your answer to the nearest cent without any unit (Do not put $ in front of your answer.). Do not use "," in your answer. e.g. 123456.78)