Show your answers thoroughly.

1. Sally invested $1,750 into an RRSP that earned interest at 5% compounded semiannually for eight years.

a.Determine the balance of the account at the end of the period? _____________

b.How much interest is earned?______________

c.What is the effective rate?_____________

2.Suppose an investment of $800 earned interest of $320 at 6% compounded monthly.For how many years was the money invested? ___________________

3.A loan was repaid over seven years by end-of-month payments of $450.If interest was 12% compounded monthly, how much interest was paid?_______________

4.Mark saves $20 at the end of each week and deposits the money in an account paying 4% compounded monthly.

a.How much will he accumulate in 10 years?_______________

b.How much of the accumulated amount is interest?_______________

5.What is the size of the monthly deposits that will accumulate to $67,200 after eight years at 6.5% compounded semiannually?_________________