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How much will Tamara have in 10 years from now if she deposits the $9,868 that her grandfather gave her at 2.1 % interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as S, % or commas.

Match the correct terms for the given definitions below. A sum received today is worth more than that same sum received some time in the future. A. Compound interest B. Simple interest C. Time Value of Money (TVM) principle D. Interest rate The percent of principal charged by the lender for the use of the money Interest is earned and added to the principal amount during each period Interest earned is paid out separately, and not added back to the principal.

Jake will retire next month and will have $566,229 in Registered Retirement Savings Plans (RRSPs). He wants a quarterly payment at the beginning of each quarter and expects to earn 9.6%, compounded quarterly in the equity and bond markets as an average. What quarterly amount would he be able to withdraw if his fund is expected to last 20 years? Ignore taxes, round to the nearest dollar and do not enter any symbols such as $, % or commas.

What amount of money would have to be invested at 8% to earn $16 interest after 94 days? Round your answer to 2 decimal places and do not enter any symbols such as $, % or commas

Match the following definitions with the correct term. A series of fixed, periodic payments made at the end of each period for a defined A. Ordinary annuity time-frame. B. Annuity due C. Lump sum D. Perpetuity A series of fixed, periodic payments made at the beginning of each period for a defined time-fram. A series of fixed periodic payments that occurs infinitely A single amount.

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Answer #1

Amount after 10 years = 9,868*(1.021)10

= $12,147.49

Match:

A sum received today is worth more than future – c. TVM principle

The percent of principal charges by lender – D. Interest Rate

Added to principal – A. Compound Interest

Paid out separately – B. Simple Interest

Amount required to be invested = 16/8%*365/94

= $776.60

Match

End of each period payments – B.Ordinary Annuity

Beginning of each period = B.Annuity Due

Indefinitely = D. Perpetuity

A single Amount = C. Lumpsum

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