1.Nelson borrowed $5000 for 4.5 years. For the first 2.5 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 7.5% compounded semiannually. What total amount was required to pay off the loan if no payments were made before the expiry of the 4.5-year term? (4 marks)

2.What amount would have to be invested today for the future value to be $10,000 after 20 years if the rate of return is:

a. 5% compounded quarterly? b. 7% compounded quarterly? c. 9% compounded quarterly? ( 4 marks)

3.How long did it take $4625 earning 7.875% compounded annually to grow to $8481.61?

( 4 marks)

4.An annuity consists of semiannual payments of $950 for a term of 32 years. Using a nominal rate of 9% compounded quarterly, calculate the ordinary annuity's:

a. Present value. b. Future value. ( 4 marks)

5.If you want to purchase an annuity providing an income of $2000 at the end of each month for five years, how much will it cost if the purchase funds earn 18% compounded monthly? ( 4 marks)

A. $192,429.30

B. $78,760.54

C. $80,681.00

D. $4886.44

E. $818.60

6.Fatima has made investments of $10,000 at the end of every three months for the last 8 years. She has earned 11% compounded quarterly? What is the value of the investments today? (4 marks)

A. $97,427

B. $211,003

C. $320,000

D. $460.792

E. $502,699