1.lucy paid off her student loan in 4 years by making payments of $550 at the beginning of every month. The interest rate on his loan was 4.40% compounded monthly.

a.Calculate the size of the original loan.

Round to the nearest cent

b.Calculate the amount of interest paid on the loan.

Round to the nearest cent

2.Helen deposited $26,500 into a fund at the beginning of every quarter for 14 years. She then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 3.70% compounded monthly.

a.What was the accumulated value of the fund at the end of year 14?

Round to the nearest cent

b.What was the accumulated value of the fund at the end of year 18?

Round to the nearest cent

c.What is the total amount of interest earned over the 18-year period?

Round to the nearest cent

3.Since the birth of his daughter, 19 years ago, Lionel has deposited $125 at the beginning of every month into a Registered Education Savings Plan (RESP). The interest rate on the plan was 5.70% compounded monthly for the first 6 years and 3.70% compounded monthly for the next 13 years.

a.What would be the accumulated value of the RESP at the end of 6 years?

Round to the nearest cent

b.What would be the accumulated value of the RESP at the end of 19 years?

Round to the nearest cent

c.What is the amount of interest earned during the 19 year period?

Round to the nearest cent

4.Ali invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 5 years it earned interest at a rate of 4.40% compounded semi-annually and for the next 6 years it earned interest at a rate of 6.30% compounded semi-annually.

a.Calculate the accumulated value of his investment at the end of the first 5 years.

$64,467.99

$65,414.83

$23,205.79

$23,716.32

b.Calculate the accumulated value of her investment at the end of 11 years.

$64,467.99

$65,414.83

$54,721.67

$23,716.32

c.Calculate the amount of interest earned from the investment.

$19,214.83

$18,267.99

$13,409.48

$5,805.35

5.A contract requires lease payments of $400 at the beginning of every month for 4 years.

a.What is the present value of the contract if the lease rate is 6.30% compounded annually?

Round to the nearest cent

b.What is the present value of the contract if the lease rate is 6.30% compounded daily?

Round to the nearest cent