Question 1:

Find the amount to which semi-annual deposits of $200.00 will grow in five years at 9.0% p.a. compounded semi-annually. (3 marks)

Question 2:

Leanne Simon made ordinary annuity payments of $96.00 per month for twenty-two years earning 10.2% compounded monthly. How much interest is included in the future value of the annuity? (4 marks)

Question 3:

Find the present value of ordinary semi-annual payments of $800.00 for eight years at 5.45% p.a., compounded semi-annually. (3 marks)

Question 4:

If a loan was repaid by ordinary monthly payments of $610.00 in nine years at 8.82%, compounded monthly, how much interest was paid? (4 marks)

Question 5:

The Bronffs bought an investment property valued at $220,000.00 by paying 22% 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)

Question 6:

A $19200.00 loan requires payments at the end of each month for six years. If the interest rate on the loan is 12% compounded monthly, calculate the size of each payment. (4 marks)

Question 7:

Suppose $693 is deposited at the end of every six months into an account earning 6.05% compounded semi-annually. If the balance in the account four years after the last deposit is to be $30 600.00, how many deposits are needed? (5 marks)

Question 8:

A loan is repaid by making payments of $5000.00 at the end of every six months for fourteen 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 $1600.00 made at the end of every six months for five years if interest is 8.2% compounded quarterly? (4 marks)

Question 10:

Ralph Bogita saves $85.00 at the end of each month and deposits the money in an account, paying 2.5% compounded semi-annually. (5 marks)

a) How much will he accumulate in 24 years?

b) How much of the accumulated amount is interest?

Question 11:

What deposit made at the end of each quarter will accumulate to $28 000.00 in four years at 4% compounded quarterly? (4 marks)

Question 12:

A student bought a rental property for $60 000.00 down and monthly payments of $1500.00 for 5 years. What is the equivalent cash price if money is worth 5.75% compounded semi-annually? (6 marks)