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1. Teddy plans on contributing $6000 every year to his TFSA. What is the future value after 20 years if the funds earn 4.5% compounded
1. Teddy plans on contributing $6000 every year to his TFSA. What is the future value after 20 years if the funds earn 4.5% compounded annually? 2. Aaron contributed $2000 to his RRSP at the end of every half year (semi-annually). What is the value of his RRSP after 121/2 years if the RRSP earns 3.5% compounded semi-annually? 3. Elga plans to invest $175 at the end of every month in a diversified mutual fund. If the fund earns 6% compounded monthly, what will the fund be worth at the end of 81/4 years? 4. Determine the present value of end-of-month payments of $75 continuing for 21/2 years. Use 8% compounded monthly as the discount (interest) rate. 5. A contract requires end-of-month payments of $175 for another 81/4 years. What would an investor pay to purchase this contract if the investor requires a rate of return of 3% compounded monthly? 6. A new loan at 9% compounded quarterly requires quarterly payments of $727.88 for seven years. Round to the nearest dollar, what amour was borrowed
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