Question 1

Billy Bean contributes $415.00 at the beginning of each month into RRSP paying interest at 6.25% compounded semi-annually. What will be the accumulated balance in the RRSP at the end of 14.75 years?

Accepted Answer

The answer of Billy Bean contributes $415.00 at the beginning...

Question 2

At the beginning of every 6 months, $1280.00 is deposited for 8 years at 6.6% compounded monthly. After 8 years interest for the account is to be 9.66% compounded quarterly and the account is to be paid out by equal end-of-quarter quarterly payments over 6 years. What is the size of the quarterly payment?

Accepted Answer

The answer of At the beginning of every 6 months,...

Question 3

Gary and Sandra Duncan bought a property by making semi-annual payments of $4210.00 for 8.5 years. If the first payment is due on the date of purchase and interest is 8.53% compounded quarterly, what is the purchase price of the property?

Accepted Answer

The answer of Gary and Sandra Duncan bought a property...

Question 4

A lease requires monthly payments of $1150.00 due in advance. If interest is 16% compounded quarterly and the term of the lease is 4 years, what is the cash value of the lease?

Accepted Answer

The answer of A lease requires monthly payments of $1150.00...

Question 5

Karen Peters bought their neighbor's farm for $450 000.00 down and payments of $67100.00 at the end of every six months for 7 years. What is the purchase price of the farm if the semi-annual payments are deferred for four years and interest is 5.5% compounded semi-annually?

Accepted Answer

The answer of Karen Peters bought their neighbor's farm for...

Question 6

Determine the accumulated value after 14.5 years of deposits of $172.00 made at the beginning of every 6 months and earning interest at 4.45% compounded monthly?

Accepted Answer

The answer of Determine the accumulated value after 14.5 years...

Question 7

A property was purchased for quarterly payments of $1070.00 for 9 years. If the first payment was made on the date of purchase and interest is 5.57% compounded annually, what was the purchase price of the property?

Accepted Answer

The answer of A property was purchased for quarterly payments...

Question 8

Mike acquired his sister's share of their business by agreeing to make payments of $4711.00 at the end of each year for 8 years. If the payments are deferred for three years and money is worth 5.96% compounded quarterly, what is the cash value of the sister's share of the business?

Accepted Answer

The answer of Mike acquired his sister's share of their...

Question 9

A vacation property was bought by making semi-annual payments of $7500.00 for seven years. If the first payment is due on the date of purchase and interest is 6% p.a. compounded quarterly, calculate the purchase price of the property.

Accepted Answer

The answer of A vacation property was bought by making...

Question 10

A property was purchased for quarterly payments of $3000.00 for 10 years. If the first payment was made on the date of purchase and interest is 6% compounded annually, what was the purchase price of the property?

Accepted Answer

The answer of A property was purchased for quarterly payments...

Question 11

Starting three months after her grandchild Crystal's birth, Mrs. Robinson made deposits of $63.25 into a trust fund every three months until Crystal was 19 years old. The trust fund provides for equal withdrawals at the end of each quarter for 5 years beginning three months after the last deposit. If interest is 8.24% compounded quarterly, how much will Crystal receive every three months?

Accepted Answer

The answer of Starting three months after her grandchild Crystal's...

Question 12

Quarterly deposits of $650.00 were made at the beginning of every 3 months for 11.25 years. If the interest is 4.92% compounded monthly, what amount can be withdrawn 6 years after the last deposit?

Accepted Answer

The answer of Quarterly deposits of $650.00 were made at...

Question 13

Slick Sean contributes $500.00 at the beginning of each month into RRSP paying interest at 6.00% compounded semi-annually. What will be the accumulated balance in the RRSP at the end of 15 years?

Accepted Answer

The answer of Slick Sean contributes $500.00 at the beginning...

Question 14

Quarterly deposits of $2000.00 were made at the beginning of every 3 months for 10 years. If the interest is 6% compounded monthly, what amount can be withdrawn 7 years after the last deposit?

Accepted Answer

The answer of Quarterly deposits of $2000.00 were made at...

Question 15

Bow Valley Credit Union entered a lease contract valued at $3100.00. The contract provides for payments at the beginning of each month for three years. If interest is 8.8% compounded quarterly, what is the size of the monthly payment?

Accepted Answer

The answer of Bow Valley Credit Union entered a lease...

Question 16

Amy contributed $1011.00 at the end of every six months for 21.5 years into an RRSP earning interest at 6.65% compounded semi-annually. Seven years after the last contribution, Amy converted the RRSP into an RRIF that is to pay her equal quarterly amounts for 17.25 years. If the first payment is due three months after the conversion into the RRIF and interest on the RRIF is 7.66% compounded quarterly, how much will Amy receive every three months?

Accepted Answer

The answer of Amy contributed $1011.00 at the end of...

Question 17

What is the accumulated value after 14 years of monthly deposits of $415.00 earning interest at 5.8% compounded semi-annually if the deposits are made
a) at the end of each month?
b) at the beginning of each month?

Accepted Answer

The answer of What is the accumulated value after 14...

Question 18

Ellora wants to accumulate $150 000.00 in an RRSP by making annual contributions of $5000.00 at the beginning of each year. If interest is 5.5% compounded quarterly, calculate how long she has to make contributions.

Accepted Answer

The answer of Ellora wants to accumulate $150 000.00 in...

Question 19

Determine the accumulated value after 15 years of deposits of $500.00 made at the beginning of every 6 months and earning interest at 12% compounded monthly?

Accepted Answer

The answer of Determine the accumulated value after 15 years...

Question 20

Compute the nominal annual rate of interest compounded monthly at which $1500.00 deposited at the beginning of every three months for ten years will amount to $90 000.00.

Accepted Answer

The answer of Compute the nominal annual rate of interest...

Quiz 13: Annuities Due, Deferred Annuities, and Perpetuities