9. Steve has current savings of $15,000 in a bank. If the interest rate is 10% per annum compounded

semi-annually, how long would it take for the accumulated balance to grow to at least $25,000

into the account?

A. 4.5 years

B. 5 years

C. 5.5 years

D. 6 years

10. Bridget's current account balance is $5,000. She will need to spend $1,000 exactly 2 years later

$2,300 exactly 4 years from now. What is her account balance 5

4% per annum compounded quarterly?

A. $2,580.74

B. $2,566.40

C. $2,480.04

D. $2,467.69

11. Adam's parents estimated that the annual expenses of attending the University of Cambridge

$30,000, assumed to be at the end of each period 4 years, in which the

1 year from today. Calculate the required single deposit today into an

of 9% per annum compounded annually if his parents want

right now.

A. $89,166.60

B. $97,191.60

C. $105,938.84

D. $137,193.87

12. Calculate the present value of a perpetuity with annual payments of $500 made in arrears if the

return is 5%.

A. $5,000

B. $7,500

C. $10,000

D. $20,000

13. Janice will receive 3 years worth of equal scholarship of $18,000 per annum starting two years

. Calculate the present value of this scholarship if the effective annual interest rate is

8%.

A. $39,770.02

B. $42,951.62

C. $46,387.75

D. $50.098.77

14. Ross is repaying a loan of $400,000 with 25 years of equal month-end instalments. If the interest

is 6% per annum compounded monthly, calculate the amount of monthly

.

A. $2,577.21

B. $2,607.56

C. $2,806.62

D. $2,878.35