1..

1.

The Continental Bank advertises capital savings at 7.1% compounded annually while TD Canada Trust offers premium savings at 7.03% compounded monthly .Suppose you have $1000 to invest for two years.

?(a) Which deposit will earn more? interest?

?(b) What is the difference in the amount of? interest?

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

2.

Find the future value of the following investment.

Principal	Nominal Rate	Frequency of Conversion	Time
?$6700.00	6.1?%	annually	6 year

The future value is $_______.

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

3..

Chen opened an RRSP deposit account on December? 1, 2008, with a deposit of $2000.He added $2000 on December 1, 2010, and $2000 on July 1, 2012.

How much is in his account on April 1, 2016, if the deposit earns 8.1% p.a. compounded monthly??

The amount in the account is $______.

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

4..

A demand loan of $5000.00 is repaid by payments of ?$2000.00.after two ?years,$2000.00 after four ?years, and a final payment after seven years.

Interest is 5?% compounded semi-annually for the first two years, 6?% compounded quarterly for the next two years, and 6?% compounded semi-annually there after.

What is the size of the final? payment?The final payment is $_____

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

5.

What is the accumulated value of $600 invested for 17 years at 3.8?% p.a. compounded

?(a)? annually???????(b)? semi-annually???????(c)? quarterly?????? (d)? monthly?

?(a) The accumulated value is ?$_____.

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

?(b) The accumulated value is $_____.

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

(c) The accumulated value is $_____..

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

?(d) The accumulated value is $____.

?(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)

6.

Find the proceeds of a promissory note with a maturity value of $2500 due on September 30, 2022,discounted at 4% compounded semi-annually on March 31?,2019.

The proceeds are $______.

?(Round to the nearest cent as needed. Round all intermediate values to six decimal places as? needed.)