Question 1

A loan was repaid in 6.5 years by quarterly payments of $515.00 at 9.85% compounded semi-annually. What is the value of the loan?

Accepted Answer

PMT = 515, i = 0.0985 ÷ 2 = 0.04925, n = 6.5 × 4 = 26, c =   = 0.5
p =   - 1 = 0.024329
PVg = 515.00   = 515.00(19.108482) = $9837.45

Question 2

Mr. Sepaba accumulated $600 000.00 in an RRSP. He converted the RRSP into an RRIF and started to withdraw $3000.00 at the end of every month from the fund. If interest is 4.5% compounded yearly, for how long can Mr. Sepaba make withdrawals?

Accepted Answer

= 800 000, PMT = 3000, i = 0.045, c =   p =   - 1 = 0.0036748094
n =   = 362 months = 30.16 years

Question 3

How much should you invest today into account paying 3.2% compounded quarterly if you want to be able to withdraw at the end of every 3 month the amounts of money growing at a constant rate of 3% for the period of 5 years, if the first withdrawal is to be $100 five years three months from now?

Accepted Answer

The amount needed to be in the account five years from now:
PMT =100, i = 0.032÷4 = 0.008, k = 0.03, n = 5×4 = 20
PV = 100   = $2454.76
The amount to be invested today:
PV = 2454.76   = $2093.14

Question 4

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

Accepted Answer

A)  $26811.16 
B)  $28611.16 
C)  $26611.57 
D)  $28811.16 
E)  $26407.57 
A)  $26811.16 
B)  $28611.16 
C)  $26611.57 
D)  $28811.16 
E)  $26407.57

Question 5

Note: The calculations for this question were done using Excel's RATE function.
What is the rate of interest compounded quarterly if a loan of $31 500.00 is repaid in seven years by payments of $2712.00 made at the end of every six months?

Accepted Answer

Nper 14
Pmt -2712.00
PV 31500.

Question 6

A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually?

Accepted Answer

PMT = 1000, i = 0.0575÷2 = 0.0

Question 7

Sabrina deposits $300.00 into a savings account at the end of each month for five years. If the accumulated value of the deposits is $20 000.00 and interest is compounded semi-annually, calculate the nominal rate of interest

Accepted Answer

FV = 20 000.00; PMT = 300; n =

Question 8

What is the future value of payments of $230.00 made at the end of every three months in twenty-one years if interest is 7.65% compounded annually?

Accepted Answer

PMT = 230, i = 0.0765, n = 21×

Question 9

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each month if interest is 4% compounded semi-annually.

Accepted Answer

PMT = 1000.00; n = 10(12) = 12

Question 10

A mortgage requires payments of $4000.00 at the end of every six months for twelve years. If interest is 8% compounded quarterly, calculate the principal of the loan.

Accepted Answer

A)  $75 655.70 
B)  $84 948.26 
C)  $60 738.85 
D)  $88 320.00 
E)  none of the above 
A)  $75 655.70 
B)  $84 948.26 
C)  $60 738.85 
D)  $88 320.00 
E)  none of the above

Question 11

If a student loan was repaid by monthly payments of $800.00 in 5.0 years at 8.00% compounded yearly, how much interest was paid?

Accepted Answer

PMT = 800, i = 0.08, n = 5 × 1

Question 12

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?

Accepted Answer

@#IMG-DLM& = 27 000, i = 0.0684 ÷ 12 = 0

Question 13

Note: The calculations for this question were done using Excel's RATE function.
What nominal annual rate of interest compounded semi-annually is earned by quarterly deposits of $7327.00 made for six years if the balance just after the last deposit is $289 000.00?

Accepted Answer

Nper 24
Pmt -7327.00
FV 289000

Question 14

A loan of $54 000.00 is repaid by making payments of $3000.00 at the end of every three months. If the interest is 9% compounded monthly, calculate how long the payments have to be made.

Accepted Answer

PV = 54 000.00; PMT = 3000.00; i = @#IMG-DLM& = 0.

Question 15

What is the accumulated value of deposits of $2000.00 made at the end of every year for three years if interest is 6.00% compounded quarterly?

Accepted Answer

PMT = 2000, i = 0.06÷4 = 0.015

Question 16

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually.
a) How much will she accumulate in 20 years?
b) How much of the accumulated amount is interest?

Accepted Answer

PMT = 50, i = 0.03÷2 = 0.015,

Question 17

Mrs. Engleder has made deposits of $750.00 at the end of every six months for twenty-three years. If interest is 3.72% compounded monthly, how much will Mrs. Engleder have accumulated six years after the last deposit?

Accepted Answer

PMT = 750, i = 0.0372÷12 = 0.0031, n = 2

Question 18

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years?

Accepted Answer

FV = 12 500.00; n = 10(4) = 40; i = @#IMG-DLM& = 0

Question 19

A 22-year mortgage is amortized by payments of $1761.50 made at the end of each month. If interest is 9.65% compounded semi-annually, what is the mortgage principal?

Accepted Answer

PMT = 1761.50, i = 0.0965÷2 =

Question 20

You buy a motorcycle for $52523 plus freight of $724 and other delivery charges of $561. You have saved 25% of the total purchase price towards a down payment. The bank is willing to finance the purchase of the motorcycle at 9.86% compounded quarterly. What is the size of your monthly payment if the loan is for 4.5 years?

Accepted Answer

A)  $296.80 
B)  $926.80 
C)  $962.80 
D)  $996.80 
E)  $262.80 
A)  $296.80 
B)  $926.80 
C)  $962.80 
D)  $996.80 
E)  $262.80

A loan was repaid in 6.5 years by quarterly payments of $515.00 at 9.85% compounded semi-annually. What is the value of the loan?

Mr. Sepaba accumulated $600 000.00 in an RRSP. He converted the RRSP into an RRIF and started to withdraw $3000.00 at the end of every month from the fund. If interest is 4.5% compounded yearly, for how long can Mr. Sepaba make withdrawals?

How much should you invest today into account paying 3.2% compounded quarterly if you want to be able to withdraw at the end of every 3 month the amounts of money growing at a constant rate of 3% for the period of 5 years, if the first withdrawal is to be $100 five years three months from now?

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

Note: The calculations for this question were done using Excel's RATE function. What is the rate of interest compounded quarterly if a loan of $31 500.00 is repaid in seven years by payments of $2712.00 made at the end of every six months?

A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually?

Sabrina deposits $300.00 into a savings account at the end of each month for five years. If the accumulated value of the deposits is $20 000.00 and interest is compounded semi-annually, calculate the nominal rate of interest

What is the future value of payments of $230.00 made at the end of every three months in twenty-one years if interest is 7.65% compounded annually?

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each month if interest is 4% compounded semi-annually.

A mortgage requires payments of $4000.00 at the end of every six months for twelve years. If interest is 8% compounded quarterly, calculate the principal of the loan.

If a student loan was repaid by monthly payments of $800.00 in 5.0 years at 8.00% compounded yearly, how much interest was paid?

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?

Note: The calculations for this question were done using Excel's RATE function. What nominal annual rate of interest compounded semi-annually is earned by quarterly deposits of $7327.00 made for six years if the balance just after the last deposit is $289 000.00?

A loan of $54 000.00 is repaid by making payments of $3000.00 at the end of every three months. If the interest is 9% compounded monthly, calculate how long the payments have to be made.

What is the accumulated value of deposits of $2000.00 made at the end of every year for three years if interest is 6.00% compounded quarterly?

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually. a) How much will she accumulate in 20 years? b) How much of the accumulated amount is interest?

Mrs. Engleder has made deposits of $750.00 at the end of every six months for twenty-three years. If interest is 3.72% compounded monthly, how much will Mrs. Engleder have accumulated six years after the last deposit?

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years?

A 22-year mortgage is amortized by payments of $1761.50 made at the end of each month. If interest is 9.65% compounded semi-annually, what is the mortgage principal?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Trade Discount, Cash Discount, Markup, and Markdown

Break-Even and Cost-Volume-Profit Analysis

Simple Interest

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary Simple Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

Filters

Exam 12: Ordinary General Annuities

A loan was repaid in 6.5 years by quarterly payments of $515.00 at 9.85% compounded semi-annually. What is the value of the loan?

Mr. Sepaba accumulated $600 000.00 in an RRSP. He converted the RRSP into an RRIF and started to withdraw $3000.00 at the end of every month from the fund. If interest is 4.5% compounded yearly, for how long can Mr. Sepaba make withdrawals?

How much should you invest today into account paying 3.2% compounded quarterly if you want to be able to withdraw at the end of every 3 month the amounts of money growing at a constant rate of 3% for the period of 5 years, if the first withdrawal is to be $100 five years three months from now?

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

Note: The calculations for this question were done using Excel's RATE function. What is the rate of interest compounded quarterly if a loan of $31 500.00 is repaid in seven years by payments of $2712.00 made at the end of every six months?

A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually?

Sabrina deposits $300.00 into a savings account at the end of each month for five years. If the accumulated value of the deposits is $20 000.00 and interest is compounded semi-annually, calculate the nominal rate of interest

What is the future value of payments of $230.00 made at the end of every three months in twenty-one years if interest is 7.65% compounded annually?

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each month if interest is 4% compounded semi-annually.

A mortgage requires payments of $4000.00 at the end of every six months for twelve years. If interest is 8% compounded quarterly, calculate the principal of the loan.

If a student loan was repaid by monthly payments of $800.00 in 5.0 years at 8.00% compounded yearly, how much interest was paid?

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?

Note: The calculations for this question were done using Excel's RATE function. What nominal annual rate of interest compounded semi-annually is earned by quarterly deposits of $7327.00 made for six years if the balance just after the last deposit is $289 000.00?

A loan of $54 000.00 is repaid by making payments of $3000.00 at the end of every three months. If the interest is 9% compounded monthly, calculate how long the payments have to be made.

What is the accumulated value of deposits of $2000.00 made at the end of every year for three years if interest is 6.00% compounded quarterly?

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually. a) How much will she accumulate in 20 years? b) How much of the accumulated amount is interest?

Mrs. Engleder has made deposits of $750.00 at the end of every six months for twenty-three years. If interest is 3.72% compounded monthly, how much will Mrs. Engleder have accumulated six years after the last deposit?

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years?

A 22-year mortgage is amortized by payments of $1761.50 made at the end of each month. If interest is 9.65% compounded semi-annually, what is the mortgage principal?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Trade Discount, Cash Discount, Markup, and Markdown

Break-Even and Cost-Volume-Profit Analysis

Simple Interest

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary Simple Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

Filters