How much does a depositor have to save

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Reference no: EM132795261

Questions -

Q1. A contract can be fulfilled by making an immediate payment of $7,500 or equal payments at the end of every 6 months for 10 years. What is the size of the semi-annual payments at 9.6% compounded semi-annually?

Q2. How much does a depositor have to save at the end of every three months for seven years to accumulate $3,500 if interest is 3.75% compounded quarterly?

Q3. Ruben bought a boat valued at $16,500 on an installment plan requiring a $2,000 down payment and equal end-of-month payments for five years. If interest is 7.5% compounded monthly, what is the size of the monthly payment?

Q4. A vacation property valued at $125,000 was bought for 12 payments of $12,000 due at the beginning of every 6 months. What nominal annual rate of interest was charged?

Q5. If you save $75 at the beginning of every month for 10 years, for how long can you withdraw $260 at the beginning of each month, starting 10 years from now, assuming the interest is 6% compounded quarterly? Express your answer in years and months.

Q6. If contributions of $350 made into an RRSP at the beginning of every 3 months amounted to $15,449 after 8 years, what monthly compounded nominal rate of interest was used? What would be the effective rate?

Q7. If Gerhart accumulated $5,700 in his savings account over five years, how much did he deposit at the beginning of every month if interest is 4.32% compounded monthly?

Q8. For how long will Samir need to make payments of $500 at the end of every six months to save a total of $7,000 if interest is 2.25% compounded quarterly? Express your answer in years and months.

Q9. Thalani borrowed $10,000 to help finance her education. She intends to repay the loan with month-end payments of $350. If interest is 4% compounded quarterly, for how long will Thalani have to make monthly payments? Express your answer in years and months.

Q10. Rihannah placed earnings of $6,783 into a savings account. If she withdraws $575 at the end of each month, how long will the money last if interest is 3.15% compounded monthly.

Q11. RRSP contributions of $4,345.11 at the end of every six months are projected to grow to be worth $400,000 in 25 years. What effective rate of interest was used for this forecast?

Q12. After 10.5 years of contributions of $2,000 at the end of every six months to an RESP, the accumulated amount stood at $65,727.82. What semi-annually compounded nominal rate of return was earned by the funds in the RESP?

Q13. Jatinder's family wants to save $5000 to finance a vacation. They are able to save $240 at the beginning of each month, earning interest of 5% compounded monthly. In years and months, how long will it take them to save enough money to take the trip?

Reference no: EM132795261

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