assignment 3 busi 1003 (1).rtf - Assignmnet 3rd Base on Unit 6 Each carry 10 marks 1 How much will a registered retirement savings deposit of $13 500.00

assignment 3 busi 1003 (1).rtf - Assignmnet 3rd Base on...

This preview shows page 1 out of 1 page.

Assignmnet 3rd Base on Unit 6 Each carry 10 marks 1) How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest? 2) To what future value will a principal of $7100.00 amount in three years at 7.6% p.a. compounded: a) annually b) semi-annually c) quarterly d) monthly 3) The Rob U Blind Bank advertises capital savings at 7.128% compounded semi-annually while Take Your Money Trust offers premium savings at 7.1% compounded monthly. Suppose you have $4400.00 to invest for two years. a) Which deposit will earn more interest? b) What is the difference in the amount of interest? 4) Allison started an RRSP on March 1, 2011, with a deposit of $2470.00. She added $1900.00 on December 1, 2012, and $1850.00 on September 1, 2013. What is the accumulated value of her account on December 1, 2015, if interest is 7.24% compounded quarterly? 5) A debt of $5000.00 is to be repaid by payments of $2000.00 after two years, $2500.00 after three years and a final payment after five years. Determine the size of the final payment if
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

Unformatted text preview: interest is 10% p.a. compounded semi-annually. 6) Calculate the present value of $12 500.00 due in two years and nine months if interest is 7.8% p.a. compounded semi-annually. 7) A loan of $2500.00 made today is to be repaid in three equal installments due in one year, two years, and four years respectively. What is the size of the equal installments if money is worth 8.4% compounded monthly? 8) A debt can be repaid by payments of $4125.00 today, $3770.00 in two years and $5600.00 in five years. What single payment would settle the debt three years from now if money is worth 9.88% p.a. compounded quarterly? 9) Find the present value and the compound discount of $6 600.00 due in seven years, three months, if interest is 7.2% compounded quarterly. 10) A $5000.00, six-year note bearing interest at 8.24% compounded quarterly, discounted three and a half years after the date of issue at 6.6% compounded monthly. Find the proceeds....
View Full Document

  • Winter '15
  • EHemming

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors