Question 1

0 / 2 points

Olive borrowed $18,167 at 2.99% compounded quarterly. She repaid the loan in 5 years and 7 months.

• Calculate the accumulated value of the loan at the end of the term. Enter your answer in blank #1. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
• Calculate the amount of interest charged on the loan. Enter your answer in blank #2. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 2

0 / 2 points

You invested some money in an RRSP 10 years and 11 months ago at a rate of 5.92% compounded quarterly. Today, there is $8,780 in the account.

• How much money did you invest? Enter your answer in blank #1. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
• How much money did your investment earn? Enter your answer in blank #2. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 3

2 / 3 points

A company has the following payment options to settle a loan:

• Option A: Pay $10,670 today.
• Option B: Pay $5,600 today and $7,330 in 8 years.

The interest rate on the loan is 2.03% compounded daily.

• What is the total value of Option B today? Enter your answer in blank #1. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
• Which option is more economical for the company? Enter A or B in blank #2.
• How much money today will the company save by choosing the option selected in blank #2? Enter your answer in blank #3. (Round your answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 4

0 / 2 points

You invested $7,240 in a mutual fund. For the first 2 years the interest rate on the fund was 3.58% compounded semi-annually. After that, the interest rate changed to 3.96% compounded daily for 10 years.

• How much do you have in the mutual fund at the end of the 12 years? Enter your answer in blank #1. (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)
• How much interest did you earn from the fund? Enter your answer in blank #2. (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 6

0 / 1 point

You were expected to settle a loan at 5.4% compounded semi-annually by making payments of $1,710 due 11 months ago, $960 due today and $940 due 30 months from now. What single equivalent payment in 11 months would replace these payments, assuming none of the payments are made? (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 7

0 / 1 point

Payments of $1,441 in 4 years and $3,980 in 9 years to settle a loan are to be rescheduled with a payment of $638 in 2.5 years and an unknown payment in 6.5 years. What is the size of the unknown payment if the interest rate is 6.18% compounded semi-annually. (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 8

0 / 1 point

Calculate the equal payments, one in 4 years and one in 14 years, that would replace a payment of $7,450 in 6 years and $5,320 in 20 years. Assume that money earns 4.95% compounded semi-annually. (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)

Question 9

0 / 1 point

You borrowed $12,940 today at an interest rate of 3.24% compounded quarterly. The loan agreement requires that you make three equal payments scheduled in 1 year, 9 years, and 15 years. Calculate the size of your payments. (Round your final answer to 2 decimal places and include the $ sign. Enter your answer in the form $1,234.56.)