1) Use the following information to answer this question and select the best answer.

Scenario 1: A loan of $15 000.00 at an interest rate of 5.50%, compounded monthly for 1 year.

Scenario 2: A loan of $15 000.00 at an interest rate of 5.50%, compounded _______ for 1 year.

Assuming no payments are made, which compounding period frequency in Scenario 2 would result in less interest than in Scenario 1? a) every two weeks b) daily c)semi-annually d) weekly

2) How long does it take an investment of $1,000 to become $2,500 if it is invested at 6% annual interest compounded daily?

a) 6 yrs b) 2.5 yrs c)15.3 yrs d) 122 months

Question 6 (1 point) A $200 stock purchase is worth $800 after six years. Assuming constant growth, the interest rate is approximately O 3% O 6% O 12% O 24%\fQuestion 9 (1 point) The value of a house appreciates 3.85% per year. If the house was purchased for $230 000 in June 2014, what is the approximate value of the house in June 2019? O $239 000 O $278 000 O $693 000 O $1 003 000Question 10 (1 point) Greg wants to invest $2000.00 for three years and has two options. Option 1: Invest in a Canada Savings Bond at a simple interest rate of 2.40%. Option 2: Invest in a guaranteed investment certificate (GIC) at an interest rate of 2.40%, compounded annually. Select the statement that is true. O The Canada Savings Bond will earn more interest. The GIC has a higher level of risk. O Both investments will earn equal amounts of interest. O The GIC will earn more interest. Question 11 (5 points) When she turned 25, Skyler began investing $300.00 monthly into a mutual fund account producing average returns of 5.75%, compounded monthly. She will stop contributing when she retires at age 60. a) How much money will her investment be worth at retirement? Show your work. b) She will withdraw $2500.00 per month from her account after retiring. If the average return rate stays the same, how old will she be when the account balance is zero? Show your work. c) If she had invested $500 per month instead of $300 per month, how much more money would she have?Question 12 (5 points) Skyler and Skyler have a combined gross monthly income of $4500.00. They want to buy a house in a neighbourhood where the average monthly heating cost is $150.00 and monthly property taxes are $225.00. a) Calculate the maximum monthly mortgage payment they can afford, based on the gross debt service ratio. Show your work. b) Based on the maximum monthly mortgage payment in (a), their bank has offered them a 25-year mortgage at an interest rate of 3.50%, compounded semi-annually. If they have saved $20 000.00 for a down payment, what would be the maximum house price they can afford? Show your work