Yankee Construction agreed to lease payments of $$762\mathrm{.}79$ on construction equipment to be

made at the end of each month for six years. Financing is at $15\%$ compounded monthly.

a$)$ What is the value of the original lease contract?

b$)$ If$,$ due to delays, the first eight payments were deferred, how much money would be

needed after nine months to bring the lease payments up to date?

c$)$ How much money would be required to pay off the lease after nine months?

d$)$ If the lease were paid off after nine months, what would the total interest be$?$

e$)$ How much of the total interest would be due to deferring the first eight payments?

Question $2$

Mr$.$ and Mrs$.$ Fox have each contributed $$1825\mathrm{.}00$ per year for the last eight years into

RRSP accounts earning $6\mathrm{.}93\%$ compounded annually. Suppose they leave their

accumulated contributions for another five years in the RRSP at the same rate of interest.

a$)$ How much will Mr$.$ and Mrs$.$ Fox have in total in their RRSP accounts?

b$)$ How much did the Fox's contribute?

c$)$ How much will be interest?

Question $3$

A real estate developer bought land for $$170000\mathrm{.}00$ down and monthly payments of $$10$

$450\mathrm{.}00$ for $5$ years. What is the equivalent cash price if money is worth $7\mathrm{.}75\%$ compounded

semi$-$annually?

Question $4$

What semi$-$annual payment must be made into a fund at the beginning of every six months

to accumulate to $$4800\mathrm{.}00$ in ten years at $7\%$ compounded semi$-$annually?

Question $5$

Payments of $$500\mathrm{.}00$ are made at the beginning of each month for four years. The interest

rate is $4\mathrm{.}5\%$ compounded monthly. If no further deposits are made

a$)$ Calculate the accumulated value twelve years after the first deposit.

b$)$ Calculate the amount deposited.

c$)$ Calculate the interest.

Question $6$

Jessica bought a bedroom suite on credit, signing an installment contract with a finance

company that requires monthly payments of $$100\mathrm{.}00$ for $5$ years. The first payment is made

on the date of signing and interest is $24\%$ compounded monthly.

a$)$ What was the cash price?

b$)$ How much will Tricia pay in total?

c$)$ How much of what she pays will be interest?

Question $7$

Determine the future value and the present value of monthly payments of $$173\mathrm{.}00$ each for

six years at $6\mathrm{.}48\%$ compounded monthly if

a$)$ the payments form an annuity due;

b$)$ the payments form an ordinary annuity