What is the accumulated value of periodic deposits

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Question 1. What is the accumulated value of periodic deposits of $50 at the beginning of every six months for 18 years if the interest rate is 3.60% compounded semi-annually?

Question 2. Victoria invested $1,600 at the beginning of every 6 months in an RRSP for 11 years. For the first 6 years it earned interest at a rate of 4.50% compounded semi-annually and for the next 5 years it earned interest at a rate of 5.60% compounded semi-annually.

a. Calculate the accumulated value of her investment at the end of the first 6 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.

Question 3. Michael invested $2,000 at the beginning of every 6 months in an RRSP for 11 years. For the first 7 years it earned interest at a rate of 4.60% compounded semi-annually and for the next 4 years it earned interest at a rate of 5.40% compounded semi-annually.

a. Calculate the accumulated value of her investment after the first 7 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.

Question 4. For 18 years, Janet saved $1,100 at the beginning of every month in a fund that earned 5.5% 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?

Question 5. A contract requires lease payments of $900 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?

Question 6. Anika secured a 5-year car lease at 6.50% compounded annually that required her to make payments of $887.35 at the beginning of each month. Calculate the cost of the car if she made a downpayment of $2,500.

Reference no: EM133290876

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