7. A rental agreement requires the payment of $900 at the beginning of each month. What single payment at the beginning of the rental year should the landlord accept instead of twelve monthly payments if money is worth 6% compounded monthly? Interim calculations should be to 3 decimal places; final answer to the nearest cent. Total: 5 marks

8. Roger Baker has accumulated $600, 000 in his RRSP and is going to purchase a 25-year annuity from which he will receive month-end payments. The money used to purchase the annuity will earn 4.8% compounded monthly. If payments grow by 2.4% compounded monthly, what will be the initial payment? Interim calculations should be to six decimal places; final answer to the nearest cent. Total: 7 marks

9.What amount is required to fund a perpetuity that pays $10,000 at the beginning of each quarter? The funds can be invested to earn 5% compounded quarterly. Interim calculations should be to 4 decimal places; final answer to nearest cent. Total: 5 marks