1. Troy is saving for his retirement 25 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $88.00 at the end of each year for the next 10 years. Interest is 6%compounded annually.

(a) How much money will be in his account on the date of his retirement?

(b) How much will Troy contribute?

(c) How much will be interest?

2. For the last four years Joe has made deposits of $200 at the end of every six months earning interest at

3% compounded semi-annually. If he leaves the accumulated balance in an account earning 6%

compounded quarterly, what will the balance be in Joe's account at the end of another nine years?

3. Find the future value of the following ordinary simple annuity Using the information below.

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$313.00	1 Year	7 Years	4%	Annually

4. What is the discounted value of payments of $32.00 made at the end of every three months for 10 years if interest is

10% compounded quarterly?

5. An installment contract for the purchase of a car requires payments of $328.55 at the end of each month for 44 years. Interest is 7% per annum compounded monthly.

(a) What is the amount financed?

(b) How much is the interest cost?

6. Hunan bought a car priced at $15,400 for 15% down and equal monthly payments for four years. If interest is 6% compounded monthly, what is the size of the monthly payment?

7. Starting three months after her grandson Robin's birth, Mrs. Devine made deposits of $95 into a trust fund every three months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each quarter for three years, beginning three months after the last deposit. If interest is 4.44% compounded quarterly, how much will Robin receive every three months?

8. Eleni contributed $2,500.00 every sixmonths into an RRSP for 25 years. What nominal annual rate of interest will the RRSP earn if the balance in Eleni's account just after she made her last contribution was $ 500,000.00?

9. Property worth $185,000.00 can be purchased for 5% down and mortgage payments of $3500.00 at the end of each quarter for 25 years. What is the nominal annual rate of interest compounded quarterly?

Answer rating: 100% (QA)

Lets solve each question step by step 1 Troys Retirement Savings Given Deposit per year P 88 Interest rate r 6 or 006 Number of years n 25 Compounded ... View the full answer