Noah is investing $850 at the end of each month into a savings bond with his local investment firm. The firm has promised Noah a nominal interest rate of 4.65% compounded quarterly. Given these terms how long will it take him, in years and month(s), to accumulate $43,000? How many years and month (s).

 

2. A 25-year mortgage requires payments of $2,010.58 at the end of each three months. If interest is 3.63% compounded monthly,

a) what was the mortgage principal?

b) what would be the amount of interest charged?

 

3. Valentina is purchasing property worth $490,800. The property will be purchased with a down payment of $107,000, and the remaining balance will be borrowed from CIBC. What payment will Valentina have to make at the end of every month to pay off the loan in ten years if CIBC charges an interest rate of 2.55% compounded quarterly?

 

4. Tayen deposits $177 at the end of every three months into an account that earns 2.43% compounded monthly. Find the future value of the account in 2 years and 6 months. Round your answer to the nearest cent.


5. Madeline deposits $182 at the end of every three months into an account that earns 3.25% compounded semi-annually. Find the accumulated value, and interest earned in 6 years and 6 months. Round all answers to two decimal places if necessary. Find P/Y, C/Y, N, I/Y, PV, PMT, FV and Interest Earned.

 

6. What quarterly payments should Cheng pay to save $79,000 in 13 years if money can earn 2.9% compounded semi-annually?