Question 1

a. What will be the future value of a deposit of $ 1750 made into a registered retirement saving plan from March 1,2005, to December 1,2025, at 4.4% compounded quarterly?

b. A deposit of $2000 earns interest at 6% compounded monthly for four years. At that time, the interest rate changes to 7% compounded quarterly. 'What is the value of the deposit three years after the change in the rate of interest?

c. Determine the principal that will accumulate to $2387.18 from September 1, 2018, to April 1, 2022, et 5% compounded semi-annually.

Question 2 (7 marks)

A demand loan of $10 000 is repaid by payments of S5000 in one year. $6000 in four years, and a final payment in six years. Interest on the loan is 10% compounded quarterly during the first year. 8% compounded semi-annually for the next three years, and 7.5 % compounded annually for the remaining years. Determine the final payment.

Question 3 (7 marks)

Joanna plans to pay off debt by payments of S 1600 one year from now, $1800 eighteen months from now, and $2000 thirty months from now. Determine the single payment now that would settle the debt if money is worth 8% compounded quarterly.

Question 4

(7 marks)

Suppose you want to withdraw $100 at the end of each month for five years from an account paying 4.5% compounded monthly. (i) How much must you have on deposit at the beginning of the annuity? (ii) How much will you receive in total? (iii) How much of what you will receive is interest?

Question 5 (7 marks)

Mr. and Mrs. white applied to their credit union for a first mortgage of S190 000 to buy a house. The mortgage is to be amortized over 25 years and interest on the mortgage is 4.9% compounded semi-annually. What is the size of the monthly payment if payments are made at the end of each month?

Question 6 (8 marks)

Mei Willis would like to receive annuity payments of $2000 at the beginning of each quarter for seven years. The annuity term is to start five years from now and interest is 5% compounded quarterly. (i) How much must Mei invest today? (ii) How much will Mei receive in total from the annuity? (iii) How much of what she receives will be interest ?

Question 7 (8 marks)

A $5000 bond bearing interest at 6.5% payable semi-annually matures in ten years. If it is brought to yield 5.8% compounded semi-annually. what is the purchase price of the bond?