Question $1$: Two payment of $$8,500$ each must be paid two years and five years from now. If money can

earn $7\%$ compounded quarterly, what single payment three years from now would be equivalent to the

two scheduled payments?

Answer:

Question $2$: What will be the maturity value of $$8,000$ invested for four years at $7\mathrm{.}5\%$ compounded

semi$-$annually?

Answer:

Question $3$: Christian invested $$30,000$ at $8\%$ compounded quarterly. After two years the rate changed

to $9\%$ compounded monthly. What amount will Christian have five years after the initial investment?

Answer:

Question $4$: If an investment can earn $9\%$ compounded monthly, what amount must you invest now in

order to accumulate $$15,000$ after $6$ years?

Answer:

Question $5$: $A$$$20,000$ loan has to be repaid with four equal payments made three, six, nine and twelve

months, respectively from the date of the loan. If interest on the loan is $7\mathrm{.}2\%$ compounded monthly,

what is the amount of each payment?

Answer:

Question $6$: Mr$.$ Sandhu paid $$5,000$ for a $$10,000$ face value strip$-$bond having $5$ years left to maturity.

What annually compounded rate of return will he earn on his investment?

Answer:

Question $7$: The maturity value of a three$-$year, $$30,000$ investment is $$48,000.$ Calculate the nominal

rate of interest if paid if interest is compounded annually.

Answer:

Question $8$: In the past four years Canada's population grew by $0\mathrm{.}98\%,0\mathrm{.}70\%,0\mathrm{.}78\%,$ and $0\mathrm{.}85\%.$ If this

trend continues, how long will it take for Canada's population to grow from $40$ million to $60$ million?

Answer:

uestion $9$: A bank credit card quotes a rate of $1\mathrm{.}62\%$ per month on the unpaid balance. Calculate the

fective rate of interest being charged.

wer:

$10$: Over the past eight years Jim's investment in a food company share has grown from

$0$ to $$20,000.$ During the same period CPI increased from $120$ to $180.$ What was his real

and annal rate of return on the stock during the period?