Reference no: EM132682098
1. Find the amount to which quarterly deposits of $400.00 will grow in four years at 6.4% p.a. compounded quarterly.
2. Jim and Sam run a small landscaping company, and are saving $1000.00 every month in order to purchase a new machine in five years. Their savings pay 6% p.a. compounded monthly. How much of the maturity value will be interest?
3. An option of purchasing a car requires payments of $610 at the end of each month for the next three years. Suppose interest is 8.4% p.a. compounded monthly. How much is the interest cost?
4. Anne bought a small property for $35000.00 down and quarterly mortgage payments of $2200.88 at the end of each quarter for eight years. Interest is 8.4% compounded quarterly. Help Anne calculate the financing cost (interest).
5. Planning for their child's college education, David and Carol Roberts opened an account paying 6.36% compounded monthly. If ordinary annuity payments of $700.00 per month are to be paid out of the account for three years starting seven years from now, how much did the Roberts' deposit?
6. A car was purchased for $5000.00 down and payments of $556.00 at the end of each month for 4 years. Interest is 4.8% compounded monthly. What was the purchase price of the car?
7. What payment is required at the end of each month for 3 years to repay a loan of $8000.00 at 6.4% compounded monthly?
8. Sue and Tom recently purchased a townhouse listed at $800,000.00 by paying 20% down and mortgaging the balance over 25 years through equal monthly payments at 3.6% compounded monthly. What was the size of the monthly payments?
9. Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31300.00, how many deposits are needed? (This question asks for 'n')
10. Compute the nominal annual rate of interest (compounded monthly) at which $300.00 deposited at the end of each month for five years will amount to $15000.00.
11. What is the accumulated value of deposits of $1020.00 made at the end of every six months for three years if interest is 7.2% compounded quarterly?
12. Find the accumulated value of saving of $2200.00 made at the end of every year for three years if interest is 6.00% compounded quarterly?
13. Calculate how many dollars are required from which $280.00 can be withdrawn at the end of each month for 15 years if interest is 5.44% compounded quarterly.
14. A real estate developer bought land for $35,000.00 down and monthly payments of $12000.00 for 6 years. What is the equivalent cash price if money is worth 7.8% compounded semi-annually?
15. How much must be deposited at the end of each quarter for 5 years to accumulate to $27 000.00 at 6.84% compounded monthly?
16. A loan of $40000.00 is to be repaid by equal quarterly payments for 5 years. What is the size of each quarterly payment if the interest is 5.00% compounded semi-annually?
17. Jane Bowen received $16600.00 from her parents to finance her graduate studies. Jane promised to make equal payments at the end of each month for 6 years. The payments are deferred for 3 years and interest is 8.12% compounded semi-annually. What is the size of the monthly payments?
18. Tony has accumulated $600,000.00 in an RRSP. He converted the RRSP into an RRIF and started to withdraw $4500.00 at the end of every month from the fund. If interest is 4.5% compounded yearly, for how long can Tony make withdrawals?
19. How many deposits of $400.00 made at the end of every monthly are needed to accumulate to $180,000.00 at 4.42% compounded quarterly? (This question asks for 'n')
20. Sarah deposits $300.00 into a savings account at the end of each month for five years. If the accumulated value of the deposits is $20000.00 and interest is compounded semiannually, calculate the nominal rate of interest.