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Unformatted text preview: The UBC Finance Club is planning a new advertising promotion for current Gr.12 students called, “Set For UBC”. The winner will receive a set amount at the beginning of the first month at UBC, then double that amount at the beginning of the second month, then back to the original value in the third month, and double again in the fourth month. This pattern will continue for the winning student’s four year degree, including summer months, and finish with a final payment upon graduation in May. a) Draw an accurate timeline which shows all the details of this problem. b) If the Finance Club uses a 2% discount rate and is only willing to pay $10,000 total, what is the value of the November 2010 payment? Answer: $446.79 c) If the lucky winner puts all their winnings into a Tax Free Savings Account earning 3% interest per month, how much money will they have when graduate? Answer: $30806.53...
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- Spring '09
- UBC Finance Club, Finn Ants, UBC Food Services, lump-sum payment halfway