Reference no: EM133137842

Questions -

Q1. What is the accumulated value of periodic deposits of $20 at the beginning of every quarter for 20 years if the interest rate is 2.69% compounded quarterly?

Q2. Brianna invested $1,700 at the beginning of every 6 months in an RRSP for 11 years. For the first 5 years it earned interest at a rate of 4.80% compounded semi-annually and for the next 6 years it earned interest at a rate of 6.30% compounded semi-annually.

a. Calculate the accumulated value of her investment at the end of the first 5 years.

b. Calculate the accumulated value of her investment at the end of 11 years.

c. Calculate the amount of interest earned from the investment.

Q3. Since the birth of her daughter, 17 years ago, Juan has deposited $100 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 3.70% compounded monthly for the first 7 years and 3.70% compounded monthly for the next 10 years.

a. What would be the accumulated value of the RESP at the end of 7 years?

b. What would be the accumulated value of the RESP at the end of 17 years?

c. What is the amount of interest earned during the 17 year period?

Q4. For 11 years, Janet saved $500 at the beginning of every month in a fund that earned 5.75% compounded annually.

a. What was the balance in the fund at the end of the period?

b. What was the amount of interest earned over the period?

Q5. A contract requires lease payments of $800 at the beginning of every month for 7 years.

a. What is the present value of the contract if the lease rate is 5.50% compounded annually?

b. What is the present value of the contract if the lease rate is 5.50% compounded monthly?

Q6. Kayla secured a 4-year car lease at 6.20% compounded annually that required her to make payments of $880.31 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $2,250.