Wendy would like to save $14,000 over the next 7 years.In order to accomplish this goal, she is depositing $135 at thebeginningof every month into an account with an interest rate that compounds quarterly.

1. What nominal rate of interest did Wendy earn?
2. What is the effective rate of interest?

A $485,000 house is to be purchased for 25% down and monthly payments of $1575 for as long as necessary.If the interest rate on the mortgage is 2.4% compounded semi-annually, how long will it take to pay off the mortgage.(Give your answer in years and months.)

A new Jeep Renegade sells for $41,520 and has a residual value of $15,120 in 4 years.Interest is 1.20% compounded monthly.(Do not forget to include 13% HST).

1. What are the monthly finance payments for a 4 year term?
2. What are the monthly lease payments for a 4 year term?

Michael plans to retire in 10 years.When he does, he would like to withdraw $2,500 at thebeginningof each quarter for 20 years after he retires.If interest is 2.25% compounded semi-annually, how much must he deposit at theendof each month for the 10 years leading up to his retirement?

1. Find the size of the deposit to be made now that will providebeginning-of-month payments of $800 for the first 3 years and $400 for the next 5 years using 3.2% compounded quarterly?
2. How much interest is made during this annuity?

Alex makes deposits of $420 every six months for 4 years into a savings account earning 2.4% compounded semi-annually.How muchinterestdid Alex earn?

Jessie has made $280 deposits at theendof every month for the last 10.5 years into an account earning 2.25% compounded semi-annually.Jessie stops making deposits and leaves the money in the account to grow for another 11 years.How much money will Jessie have in the account at the end of the total 21.5 years?