Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Holly saved 5120 at the end of every month for 4 years in her bank account that earned 3.90% compounded monthly a. What is

image text in transcribed
image text in transcribed
1. Holly saved 5120 at the end of every month for 4 years in her bank account that earned 3.90% compounded monthly a. What is the accumulated value of her savings at the end of 4 years? Round to the nearest cent b. What is the interest earned over the 4-year period? Round to the nearest cent 2. Calculate the amount of money Matthew had to deposit in an investment fund growing at an interest rate of 2.50% compounded annually, to provide her daughter with $13,500 at the end of every year, for 2 years, throughout undergraduate studies. Round to the nearest cent 3. Olivia planned to buy a house but could afford to pay only $9,500 at the end of every 6 months for a mortgage with an interest rate of 4.10% com- pounded semi-annually for 25 years. She paid $29.500 as a down payment a. What was the maximum amount she could afford to pay for a house? Round to the nearest cent b. What was her total investment through the mortgage period (not taking the time-value of money into account)? Round to the nearest cent c. What was the total amount of interest paid through the mortgage period? Round to the nearest cent 4. Carlos invested $80 at the end of every month into an RRSP for 12 years. If the RRSP was growing at 3.20% compounded quarterly, how much did she have in the RRSP at the end of the 12-year period? Round to the nearest cent 5. A payment of $1,000 was made into an account at the end of every 3 months for 12 years. 3. If the interest rate for the first 5 years was 5.00% compounded monthly, calculate the future value at the end of the first 5 years. Round to the nearest cent b. If the interest rate for the next 7 years was 4.00% compounded annually, calculate the future value at the end of the 12 year term. Round to the nearest cent 6. While buying a new car, Abigail made a down payment of $1,100 and agreed to make month-end payments of S320 for the next 5 years and 5 months. She was charged an interest rate of 1% compounded semi-annually for the entire term. a. What was the purchase price of the car? Round to the nearest cent b. What was the total amount of interest paid over the term? Round to the nearest cent

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied International Finance

Authors: Thomas J O'Brien

1st Edition

1606497340, 9781606497340

More Books

Students also viewed these Finance questions