ASSIGNMENT 5 (TOTAL 30 MARKS) 1. Monthly deposits of $480 were made at the end of each month for eight years. If interest is 4.5% compounded semi-annually, what amount can be withdrawn immediately after the last deposit? (3 marks) 2. A loan was repaid in five years by end-of-quarter payments of $1200 at 9.5% compounded semi-annually. How much interest was paid? (3 marks) 3. A loan of $6000 was repaid by quarterly payments of $450. If interest was 12% compounded monthly, how long did it take to pay back the loan? (3 marks) 4. A mortgage of $95 000 is to be amortized by monthly payments over 25 years. If the payments are made at the end of each month and interest is 8.5% compounded semi-annually, what is the size of the monthly payments? (3 marks) 5. Leo invested $67 250 into an annuity earning 4.4% compounded semi-annually. How much is he able to withdraw from the annuity at the end of every three months for seven years? (3 marks) 6. To support his handicapped niece, Tony made payments of $1800 into a fund at the beginning of every 3 months. If the fund earns interest at 5.24% compounded quarterly, how much will the balance in the fund be after 18 years? (3 marks) 7. Find the present value of payments of $960 made at the beginning of every month for seven years if money is worth 6% compounded monthly. (3 marks) 8. Ken acquired his sister's share of their business by agreeing to make payments of $4000 at the end of each year for 12 years. If the payments are deferred for 3 years and money is worth 5 compounded quarterly, what is the cash value of his sister's share of the business? (3 marks) 9. New Brunswick Bank pays a quarterly dividend of $0.75 per share. If comparable investments yield 4.16% compounded monthly, what is the market value of the shares? (3 marks) 10. Mr. Smart wants to set up an annual scholarship by donating $50 000 to the scholarship fund of his university. If the first payment is to be made in 5 years and interest is 4% compounded annually, what is the amount of the annual scholarship