EDIT/FILL IN THE BLANKS

Question 1:

Find the amount to which semi-annual deposits of $200 will grow in four years at 6.6% p.a. compounded semi-annually.(3 marks)

6.6/2=3.3

=200((1+0.033)*10-1/0.033)=2324.70

Question 2:

Leanne Simon made ordinary annuity payments of $81.00 per month for fourteen years earning 9% compounded monthly. How much interest is included in the future value of the annuity? (4 marks)

=81((1+0.75/100)*168-1)/(0.75/100))=27095.96-13608=13487.96

Question 3:

Find the present value of ordinary semi-annual payments of $810 for five years at 5.45% p.a., compounded semi-annually. (3 marks)

=810((1+0.02725)*10+1/0.02725=39703.76

Question 4:

If a loan was repaid by ordinary monthly payments of $715 in seven years at 9.12%, compounded monthly, how much interest was paid? (4 marks)

=715((1+0.76/100)*84-1/0.76/100=83625.29-44272.32=39352.97

Question 5:

The Savoias bought an investment property valued at $160,000 by paying 25% down and mortgaging the balance over 25 years through equal monthly payments at 6% compounded monthly. What was the size of the monthly payments?(4 marks)

=40000

Question 6:

A $15,000 loan requires payments at the end of each month for five years. If the interest rate on the loan is 12% compounded monthly, calculate the size of each payment.(4 marks)

=15000x0.01x

Question 7:

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, how many deposits are needed? (5 marks)

Question 8:

A loan is repaid by making payments of $6,000 at the end of every six months for twelve years. If interest on the loan is 8% compounded quarterly, what was the principal of the loan? Note: Different periods of compounding and repayments. (4 marks)

Question 9:

What is the accumulated value of deposits of $1,120 made at the end of every six months for three years if interest is 8.48% compounded quarterly? (4 marks)

8.48/4x2=4.24

=1120((1.0424)*6-1)/0.0424=7473.89

Question 10:

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually. (5 marks)

a) How much will he accumulate in 20 years?

b) How much of the accumulated amount is interest?

Question 11:

What deposit made at the end of each quarter will accumulate to $20,000 in four years at 4% compounded quarterly? (4 marks)

=20000x0.01/1.01*16-1=1159.42

Question 12:

A student bought a rental property for $40,000 down and monthly payments of $1,000 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually? (6 marks)