2. For the last five years Joe has made deposits of $400 at the end of every...
Question:
2. For the last five years Joe has made deposits of $400 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 eight years?
3. Find the future value of the following ordinary simple annuity.
Periodic Payment | Payment Interval | Term | Interest Rate | Conversion Period |
$421.00 | 1month | 2.25 years | 7% | monthly |
4. What is the discounted value of payments of $67.00 made at the end of each month for 4.5 years if interest is
7% compounded
5. An installment contract for the purchase of a car requires payments of $302.07 at the end of each month
for 6 years. Interest is 11% per annum compounded monthly.
(a) What is the amount financed?
(b) How much is the interest cost?
6. Hunan bought a car priced at $15,700 for 15% down and equal monthly payments for three years. If interest is
8% compounded monthly, what is the size of the monthly payment?
7. Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $160 into a trust fund every
six months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each
six months for four years, beginning six months after the last deposit. If interest is 5.75% compounded semi-annually, how much will Robin receive every six months?
8. contributed $440.00 every month into an RRSP for 22 years. What nominal annual rate of interest will the RRSP earn if the balance in Jocelyn'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?
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs