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What is the size of the final payment

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Q1. A demand loan of $7000.00 is repaid by payments of $3000.00 after two years, $3000.00 after four years, and a final payment after eight years. Interest is 5% compounded semi-annually for the first two years, 6% compounded quarterly for the next two years, and 6% compounded monthly thereafter. What is the size of the final payment?

Q2. Gabriel opened an RRSP deposit account on December 1, 2008, with a deposit of $1600. He added $1600 on April 1, 2010, and $1600 on November 1, 2012. How much is in his account on September 1, 2016, if the deposit earns 5.4% p.a. compounded monthly?

Reference no: EM132741192

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