Mathematics of Business and Finance
(a) Calculate the present value of a loan that could be cleared by payments of $3,400 at the end of every 6 months for 5 years if money earns 6.09% compounded semi-annually.
(b) Dustin saved $220 at the end of every month for 2 years in his bank account that earned 6.80% compounded monthly.
(1) What is the accumulated value of his savings at the end of 2 years?
(2) What is the interest earned over the 2 year period?
(c) A loan, amortized over 5 years, is repaid by making payments of $1,500 at the end of every month. If the interest rate is 4.75% compounded semi-annually, what was the loan principal?
(d) Thomas deposited $600 at the end of every month into an RRSP for 7 years. The interest rate earned was 3.25% compounded semi-annually for the first 5 years and changed to 3.50% compounded monthly for the next 2 years. What was the accumulated value of the RRSP at the end of 7 years? Get Finance homework help today