PLEASE READ ALL INSTRUCTIONS PRIOR TO WRITING THE TEST.

Please have all solutions labeled as question 1, 2, 3, 4, 5 and 6. If you are writing the answer on paper, you do not need to rewrite the question. Just label the question properly and make sure the pictures are clear to read.

For full marks you must have every calculator entry labeled and displayed just like I do in the lessons. This is worth 3 marks if all entries are correct. (N, I/Y, PV, FV, PMT, C/Y, P/Y)

You will be marked on timelines when required, each drawing is worth 1 mark.

Final answers must include proper labels, units ($, %, etc), and rounding. All money is rounded to 2 decimals.

Any signs of sharing work will result in a zero grade.

1.Allan took out a loan of $54,000 with an interest rate of 6.25% compounded semi-annually and demanded to make payments of $450 at the end of each month.

a) How many payments will it take Allan to pay back his loan?(4 marks)

b) How many years and months will it take Allan to pay off his loan? (2 marks)

c) How much interest did Allan pay on his loan? (2 Mark)

2.A debt requires payments of $250.00 at the end of every month for 5 years.Calculate the original amount of the debt if money is worth 5.6% compounded monthly.How much interest (in dollars) was paid? (4 Marks)

3.Stephanie intends to contribute $2,800 to her RRSP at the end of every six months. She has already accumulated $2,000 in the account. If the RRSP earns 8% compounded semi-annually for the first seven years and 7% compounded semi-annual thereafter, what amount will she have in the plan after 20 years? (7 Marks)

4.Andrew makes monthly payments of $350.67 that will pay off his mortgage loan in 6 years and 8 months. The interest rate on his mortgage is 2.8% compounded quarterly. What is the current balance on the loan? (4 marks)

5.What rate of interest compounded monthly will allow quarterly deposits of $500 to grow to $20,033.78 in 10 years' time? (4 marks)

6.Jaspreet purchased a trailer for $110,000 by making payments at the end of each month for 15 years.If interest is 5.5% compounded annually what is the size of the monthly payments?(4 marks)

7.The required monthly payment on a 19-year loan bearing interest at 8% compounded quarterly is $556.71.

a.What was the original principal amount of the loan? (4 marks)

b.What is the balance owed just after the 19th payment? (2 marks)