Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

1 . Monthly deposits of $ 4 8 0 were made at the end of each month for eight years. If interest is 4 .

1. Monthly deposits of $480 were made at the end of each month for eight years. If interest is 4.5% compounded semi-annually, what amount can be withdrawn immediately after the last deposit? 2. A loan was repaid in five years by end-of-quarter payments of $1200 at 9.5% compounded semi-annually. How much interest was paid? 3. A loan of $6000 was repaid by quarterly payments of $450. If interest was 12% compounded monthly, how long did it take to pay back the loan? 4. A mortgage of $95000 is to be amortized by monthly payments over 25 years. If the payments are made at the end of each month and interest is 8.5% compounded semi-annually, what is the size of the monthly payments? 5. Leo invested $67250 into an annuity earning 4.4% compounded semi-annually. How much is he able to withdraw from the annuity at the end of every three months for seven years? 6. To support his handicapped niece, Tony made payments of $1800 into a fund at the beginning of every 3 months. If the fund earns interest at 5.24% compounded quarterly, how much will the balance in the fund be after 18 years? 7. Find the present value of payments of $960 made at the beginning of every month for seven years if money is worth 6% compounded monthly. 8. Ken acquired his sisters share of their business by agreeing to make payments of $4000 at the end of each year for 12 years. If the payments are deferred for 3 years and money is worth 5% compounded quarterly, what is the cash value of his sisters share of the business? 9. New Brunswick Bank pays a quarterly dividend of $0.75 per share. If comparable investments yield 4.16% compounded monthly, what is the market value of the shares? (3 marks)10. Mr. Smart wants to set up an annual scholarship by donating $50000 to the scholarship fund of his university. If the first payment is to be made in 5 years and interest is 4% compounded annually, what is the amount of the annual scholarship?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

10th Canadian Edition, Volume 1

978-0176509736

Students also viewed these Accounting questions