Question
Can you please answer the questions below in details 1. Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at
Can you please answer the questions below in details
1. Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly. (50 points)
a) What is the value of the original lease contract?
b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date?
c) How much money would be required to pay off the lease after nine months?
d) If the lease were paid off after nine months, what would the total interest be?
e) How much of the total interest would be due to deferring the first eight payments?
2. Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31 300.00, how many deposits are needed? (10 points)
3. Momin plans to buy a house on cash instead of paying mortgage. He plans to set aside $14400 at the end of each year for 15 years. He puts his savings in a Tax Free Savings Account (TFSA) and invests them in a high risk mutual fund, which has traditionally earned 12.2% annually. Money decreases in value by 2.5% per annum as well. How much will Momin have saved after 15 years? (10 points)
4. For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance? (10 points)
5. Amy contributed $1011.00 at the end of every six months for 21.5 years into an RRSP earning interest at 6.65% compounded semi-annually. Seven years after the last contribution, Amy converted the RRSP into an RRIF that is to pay her equal quarterly amounts for 17.25 years. If the first payment is due three months after the conversion into the RRIF and interest on the RRIF is 7.66% compounded quarterly, how much will Amy receive every three months? (10 points)
6. Joshua deposited $3560.00 at the beginning of every 6 months for 11 years into a fund paying 3.5% compounded semi-annually. Fourteen years after the first deposit, he then converted the existing balance into an annuity due paying him equal annual payments for 22 years. If interest for the annuity due is 5% compounded annually, what is the size of the annual payment? (10 points)
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