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Which of the following problems can be solved using the present value of a lump sum formula introduced in this class? a . Pascal opens
Which of the following problems can be solved using the present value of a lump sum formula introduced in this class?
a
Pascal opens and deposits $ today in a registered retirement savings plan RRSP that pays per annum compounded monthly. He wishes to know how much the account will be worth in years if he makes no further deposits.
b
Gary takes a loan that accrues at interest, compounded quarterly. He wishes to know how much he will owe at the end of years.
c
Chris is setting up a college fund for her niece. He wants her to have $ in years. The college savings fund earns interest at a nominal rate of convertible semiannually. He wishes to know how much he should deposit in the fund today.
d
Scottie purchases a year certificate of deposit CD that pays per annum compounded quarterly. He wishes to know how much he will have when the CD matures.
e
Fred puts $ into a money market fund. The fund will earn interest at the rate of per year, compounded semiannually. He wishes to know how much the fund will be worth at the end of years.
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