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1. I invest $800 at the start of each year into an RRSP fund in order to top up my pension. If the fund earns
1. I invest $800 at the start of each year into an RRSP fund in order to top up my pension. If the fund earns 3% compounded annually, how much will I have in 26 years? 2. In order to buy a house, John has determined that he can spend, at most, $1500 at the start of each month. If his mortgage rate is 8% compounded monthly, how large can his 25 year mortgage be? 3. I figure that I need $1,000,000 saved in my RRSP account on the day I retire in 33 years. If I plan to save this $1,000,000 by making biweekly contributions at the start of each 2 week period, how large will these payments need to be? Use a rate of interest of 4% compounded biweekly. 4. You pay $410 per month on your car for a 5 year term with the first payment today. You made a down payment of $4500. What was the price of the car and how much interest did you pay? Assume you were given a rate of 6% compounded monthly
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