2-Parents of a college student deposited a sum of money at the beginning of the 1st year as their daughter started school. With this account she will be able to make monthly withdrawals of $500 over the 3 years of school If interest was 8.5% compounded semi-annually. How much money must have been deposited? How much interest is earned?

3- A person deposits quarterly payments of $600 over a period of 20 years. Interest is 5.4% compounded monthly. How much interest is earned during this time?

4-. A car with a price tag of $42,000 was purchased. There was a down payment of 10% and the rest was financed. The debt was to be paid over a period of 5 years with monthly payments. How much interest was paid in total if the rate of financing was 3.99% compounded semi- annually? Hint: Find payment size first.

5- A loan of $35,000 was taken with the intention of paying it back with quarterly payments of $1,150. Interest is charged at a rate of 4.5% compounded semi-annually. Determine the number of payments that will pay the back. What time periods does this represent in years and months?

6- A used car has a price tag of $15,999. On top of the price there is a tax of 13%. You plan to finance the car with monthly payments of $350. Interest is going to be charged at 5.6% compounded semi-annually. Determine the number of payments you will make. What time period does this represent in years and months?

7-A debt requires payments of $750 at the end of every three months for 8 years. Calculate the original amount of the debt if money is worth 9% compounded monthly. How much interest is charged?

8-Calculate the GDSR and TDSR for a person with a $50,000 annual income, expecting mortgage payments of $750/ month, heating costs of $1000/year and taxes annually at $2800. They carry a car loan that costs $400/month and credit cards that cost about $250/month. Do they qualify based upon either calculation?

9- A mortgage of $100,000 to be paid over a period of 15 years by monthly payments. The interest rate for the mortgage is 5.75% compounded semi-annually for the first 5 years.
a) Determine the size of the payments if amortized over 15 years. ($826.79)
b) What is the outstanding balance after the first year? (95,648.70)
c) What is the outstanding balance after 5 years? ($75,552.94, or $75,552.97 if rounded payment used.)
d) How much interest is paid in total over the five years? ($25,160.37)
e) Determine the new payment size after 5 years at the new rate of 3.5% compounded semi-
annually for the next 2 years.

10-A rental property was purchased worth $175,000. The owner has obtained a low interest rate of 3.15% compounded semi-annually for a 5 year term. She also plans to amortize the mortgage over a period of 20 years.
b) Determine the size of the monthly payments. ($981.93)
c) Determine the interest cost over the 20 years assuming nothing changes during this time. ($60,663.20)
d) What is the outstanding balance at the end of the 5 years term? ($140,914.50, $140,914.23 if rounded value used for payment)
e) How much principal has been paid during the first 5 years? ($34,085.50)
f) How much interest has been paid during the first 5 years? ($24,830.03)
g) How much interest would be saved if she decided to amortize the mortgage over a period of
15 years instead of 20 years? Hint: Find payment size first. (Assume that the interest rate does not change over the amortization periods)