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1. Find the accumulated value of an annuity due of $500 payable at the beginning of every month for nine years at 8% compounded monthly.

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1. Find the accumulated value of an annuity due of $500 payable at the beginning of every month for nine years at 8% compounded monthly. 2. Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for four years. If the first payment is due on the date of purchase and interest is 6.2% compounded monthly, what is the size of the monthly payment? 3. A car can be purchased by paying $27 000 now or can be leased by paying $725 per month for the next four years, with the first payment due on the day of signing lease. What nominal rate of interest is charged on the lease? 4. Raj contributes $150 at the beginning of each month into an RRSP paying interest at 5.5% compounded semi-annually. What will be the accumulated balance in the RRSP at the end of 20 years? S. Dana and Tim bought a property by agreeing to make semi-annual payments of $2000 for six years. If the first payment is due on the date of purchase and interest if 7% compounded quarterly, what is the purchase price of the property? 6. How much would you have to pay into an account at the beginning of every 5 months to accumulate $9000 in 6 years if interest is 8% compounded quarterly? 7. Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest is 6.25% compounded annually, for how long can she make withdrawals? 8. Mrs. Tea expects to retire in 7 years and would like to receive $750 at the end of each month for 10 years following the date of her retirement. How much must Mrs. Tea deposit today in an account paying 5.5% compounded semi-annually to receive the monthly payments? 9. Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If the payments are deferred for 6 years and interest is 5.75% compounded semi-annually, what amount must be invested now into the savings account? 10. Matt borrowed $13 000 at 5.5% compounded semi-annually. If the loan is to be repaid in equal semi-annual payments over 2 years and the first payment is due in 3 years after the date of the loan. What is the size of each monthly payment? 1. Find the accumulated value of an annuity due of $500 payable at the beginning of every month for nine years at 8% compounded monthly. 2. Lily purchased a boat valued at $19 000 on an installment plan requiring equal monthly payment for four years. If the first payment is due on the date of purchase and interest is 6.2% compounded monthly, what is the size of the monthly payment? 3. A car can be purchased by paying $27 000 now or can be leased by paying $725 per month for the next four years, with the first payment due on the day of signing lease. What nominal rate of interest is charged on the lease? 4. Raj contributes $150 at the beginning of each month into an RRSP paying interest at 5.5% compounded semi-annually. What will be the accumulated balance in the RRSP at the end of 20 years? S. Dana and Tim bought a property by agreeing to make semi-annual payments of $2000 for six years. If the first payment is due on the date of purchase and interest if 7% compounded quarterly, what is the purchase price of the property? 6. How much would you have to pay into an account at the beginning of every 5 months to accumulate $9000 in 6 years if interest is 8% compounded quarterly? 7. Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest is 6.25% compounded annually, for how long can she make withdrawals? 8. Mrs. Tea expects to retire in 7 years and would like to receive $750 at the end of each month for 10 years following the date of her retirement. How much must Mrs. Tea deposit today in an account paying 5.5% compounded semi-annually to receive the monthly payments? 9. Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If the payments are deferred for 6 years and interest is 5.75% compounded semi-annually, what amount must be invested now into the savings account? 10. Matt borrowed $13 000 at 5.5% compounded semi-annually. If the loan is to be repaid in equal semi-annual payments over 2 years and the first payment is due in 3 years after the date of the loan. What is the size of each monthly payment

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