1. Lexander purchased a machine for $55,000 using a 7 year loan at 5.10% com- pounded semi-annually. If the first payment was made one month from when he purchased the machine, what is the size of the monthly payments? 2. Orey's retirement fund has an accumulated amount of $60,000. If it has been earning interest at 3.22% compounded monthly for the past 21 years, calculate the size of the equal payments that he deposited at the beginning of every 3 months. 3. Hirstine contributed equal deposits at the end of every month for 3 years into an in- vestment fund. He then decided to stop making payments and left the money in the fund to grow for another 3 years. The fund was earning 2.81% compounded monthly for the entire period and the accumulated amount at the end of the term was $100,000. a. Calculate the amount in the fund at the end of 3 years. b. Calculate the size of the periodic deposits into the fund. 4. Victoria deposits $1,500 at the end of every 3 months in an RRSP that is earning 6.90% compounded semi-annually. For the RRSP to accumulate to $32,000, calculate the fol- lowing: a. How many deposits will he have to make? b. How long will he have to make these deposits? years months Express the answer in years and months, rounded to the next payment period 5. Gela will make payments of $50 at the end of every month to settle a loan of $800 at 4.20% compounded semi-annually that he received to purchase a television. a. How many deposits will he have to make? b. How long will he have to make these payments? years! months6. Peter had made regular equal deposits into a savings account at the end of every month for 4 years. The investments were earning 5.10% compounded quarterly and grew to $14,250 at the end of 4 years. a. Calculate the size of the month-end deposits. b. How long will it take for the $14,250 to accumulate to $30,520 if the interest rate remained the same and he continued making the same month-end de- posits throughout the term? years months Express the answer in years and months, rounded to the next payment period 7. Egan wanted to ensure that he had $65,000 for his child's university education. As soon as his child was born, he started saving $1,225 every 6 months in an investment fund. If he achieved his investment target on his child's 16th birthday, and he made no deposit on the child's 16th birthday, calculate the following: a. The nominal interest rate for the investment, compounded quarterly. b. Calculate the effective interest rate for this investment. 8. Nich Inc. took a loan of $1,200,000 to build a new office. Calculate the quarterly com- pounding interest rate charged on the loan if $32,701.50 was repaid at the beginning of every 6 months and the loan was paid off in 23 years. 9. Lon made payments of $143.53 at the end of every month into a retirement fund which accumulated to $37,000 over 18 years. a. At what interest rate compounded monthly was the fund growing? (Assume that the interest rate remained constant throughout the term.) b. b. At what interest rate would he have been able to accumulate the same $37,000 in only 12 years
