If you deposit $200 into a TFSA at the start of every month, accruing interest at 6,8% compounded monthly, what will the balance be after 7 years?

 

2. You have the option to purchase a lease agreement that requires payments of $1 300 made at the start of each 6 month period (semi-annually) for 2 years. What is the value, in today's dollars, of this lease contract, if you can reliably earn 3,8% compounded semi-annually in a low-risk investment?

 

3. What payment will accumulate to $11 000 over 7 years if payments are made at the beginning of each quarter and accumulate at 5,7% compounded annually?

 

4. You purchase an annuity with an initial investment of $80 000 which promises payments at the beginning of each month of $1 600, accumulating interest at 6,1% compound annually. How many months will this annuity last for? 

Answer rating: 100% (QA)

Lets solve each of these problems 1 To find the balance in the TFSA after 7 years we can use the future value of an annuity formula since you are depo... View the full answer