*PLEASE SHOW YOUR WORK*

1) Determine m, i, and n for both: (3 marks)

a) 3% compounded monthly for 2 years;

b) 5.2% compounded quarterly for 6 years.

2) How much will a registered retirement savings deposit of $2000 be worth in 13 years at 2.9% compounded quarterly? How much of this value is interest? (4 marks)

3) Find the future value of and the compound interest on $650 invested at 4.0% compounded monthly for (6 marks)

a) 3.5 years;

b) 6 years;

c) 11.5 years

4) Stephanie started an RRSP on March 1, 2010 with a deposit of $2000. She added $1500 on December 1, 2012 and will add $1800 on September 1, 2014. What will be the accumulated value on her account on December 1, 2021, if interest is 6.5% compounded quarterly?

(8 marks)

5) Find the sum of money that accumulates to $1800 at 3.5% compounded quarterly in four years, five months. (4 marks)

6) Janet is purchasing a membership in a fitness centre. She can pay either option 1: $350 now or option 2: pay $130 now, $150 in twelve months, and $170 in fifteen months. Which option is better if money is worth 7.5% compounded monthly? Show your calculations. Use the PV methodology. (8 marks)