1. Month-end payments of $1,530 are made to settle a loan of $149,540 in 9 years....

 

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1. Month-end payments of $1,530 are made to settle a loan of $149,540 in 9 years. What is the effective interest rate? Round to two decimal places 2. Alexis wants to accumulate at least $50,000 by depositing $800 at the end of every month into a fund that earns interest at 5.50% compounded monthly. a. How many deposits does she need to make to reach her goal? Round to the next payment b. How long will it take Alexis to reach her goal? years months Express the answer in years and months, rounded to the next payment period 3. You invested $10,000 at the end of each half-year for 5 years in an investment fund. At the end of year 5, if the balance in the fund was $116,000, what was the nominal interest rate compounded semi-annually? Round to two decimal places 4. Your RRSP savings of $52,500 are converted to a RRIF at 4.77% compounded monthly that pays $5,040 at the beginning of every month. After how many payments will the fund be depleted? Round to the next payment 5. Vanessa's retirement fund has an accumulated amount of $50,000. If it has been earning interest at 3.69% compounded monthly for the past 24 years, calculate the size of the equal payments that she deposited at the beginning of every 3 months. Round to the nearest cent 1. Month-end payments of $1,530 are made to settle a loan of $149,540 in 9 years. What is the effective interest rate? Round to two decimal places 2. Alexis wants to accumulate at least $50,000 by depositing $800 at the end of every month into a fund that earns interest at 5.50% compounded monthly. a. How many deposits does she need to make to reach her goal? Round to the next payment b. How long will it take Alexis to reach her goal? years months Express the answer in years and months, rounded to the next payment period 3. You invested $10,000 at the end of each half-year for 5 years in an investment fund. At the end of year 5, if the balance in the fund was $116,000, what was the nominal interest rate compounded semi-annually? Round to two decimal places 4. Your RRSP savings of $52,500 are converted to a RRIF at 4.77% compounded monthly that pays $5,040 at the beginning of every month. After how many payments will the fund be depleted? Round to the next payment 5. Vanessa's retirement fund has an accumulated amount of $50,000. If it has been earning interest at 3.69% compounded monthly for the past 24 years, calculate the size of the equal payments that she deposited at the beginning of every 3 months. Round to the nearest cent

Answer rating: 100% (QA)

To calculate the effective interest rate for a loan we can use the formula for present value of an ordinary annuity PV PMT 1 1 rn r Where PV Present V... View the full answer