Reference no: EM133049961
1. Isaac borrowed $3,600 at 11.1% compounded quarterly 3.5 years ago. One year ago he made a payment of $1,800. What amount will extinguish the loan today? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Balance owed today
2. What monthly compounded nominal rate would put you in the same financial position as 6.6% compounded semiannually? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
The compounded monthly nominal rate %
3. A 15-year loan requires month-end payments of $622.33 including interest at 9.1% compounded monthly.
What was the original amount of the loan? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Original loan amount $
4. Suppose Evan contributes $3,800 to his RRSP at the end of every quarter for the next 13 years, and then contributes $1,900 at each month's end for the subsequent 12 years.
How much will he have in his RRSP at the end of the 25 years? Assume that the RRSP earns 10% compounded semiannually. (Round your answer to the nearest cent.)
Future value _______$
5. If $500,000 accumulated in an RRSP is used to purchase an annuity earning 7.2% compounded monthly and paying $4,500 at the end of each month, what will be the term of the annuity? (Do not round intermediate calculations and round up the final answer to the nearest month.)
It will be __________ months