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I. For a sum of money interested at 4% compounded semi-annually for 5 years. (a) the nominal annual rate of interest (G). (b) The number
I. For a sum of money interested at 4% compounded semi-annually for 5 years. (a) the nominal annual rate of interest (G). (b) The number of compounding periods per year (m). (c) The periods rate of interest (0) (d) The number of compounding periods in the term (n) (e) The compounding factors (1+1) (f) The numerical value of the compounding factors. 2, A loan for $4000 with interest at 6.75% compounded semi-annually is repaid after 5 years. What is the amount of interest paid? 3. John invested S3000 that earns interest at 4% pa, compounded monthly. Two years later, the interest rate is changed to 4.50% compounded quarterly. Determine the accumulated value ofthe investment two years after the change. 4. Anju started an RRSP account on December 1, 2014, with $2000. She added $2000 on July 1, 2016, and $2000 on December 1, 2018. How much is in her account on January 1, 2020, if her deposit earns 3% p.a. cormpounded monthly. 5. Determine the sum of money that will grow to S2000 in six years at 6% compounded monthly? 6 Determine the proceeds of a 10-year promissory note discounted after 4 years at 6% compounded quarterly with a maturity value of $6000. 7. A S3000 promissory note issued without interest for four years on June 30, 2014, is di
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