Question: While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of $320 for the next 3 years

While buying a new car, Ryan made a down payment of $1,200 and agreed to make month-end payments of $320 for the next 3 years and 6 months. She was charged an interest rate of 4% compounded semi-annually for the entire term.

a. What was the purchase price of the car?

b. What was the total amount of interest paid over the term?

Since the birth of her daughter, 18 years ago, Jeremy has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.00% compounded monthly for the first 9 years and 3.60% compounded monthly for the next 9 years.

a. Calculate the value of the fund today (the end of a 18-year term).

b. How much of this is interest?

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