Question

1. Shirley wants to go on a trip to Hawaii. She budgets that she can save $108 at the end of every month, and interest in her account is 8% compounded biweekly. By looking at prices, she knows that the trip will cost her $4813 total. How long in years (round to two decimal places) will it take before she can go on her trip?

2. Joey buys a new Honda civic for $18997. He agrees to payments at the end of every month for 7 years. If interest is 8% compounded quarterly, what are Joey's payments?

3. Ronald has $23076 saved in his RRSP. He wishes to retire in 23 years and will make quarterly contributions to his RRSP at the end of every quarter. Interest is 7% compounded weekly. He wants to have $300490 saved by his retirement. How much should his contributions be?

4. Nathan has a loan of $6000 to repay, with an interest rate of 8% compounded monthly. Nathan planned to make $150 payments at the end of each month to repay his loan, but is considering only $100 per month. How many additional months will it take to repay the loan if he pays $100 per month instead of $150?

(Hint: Round each term in months up to a whole number before finding the difference.)

5. A pet food store receives discounts from a supplier of 9% and 13% on a doggie treat which has a list price of $160.15. The store then marks the treat up 12% of cost for overhead and 16% of selling price for operating profit. Later, the store has a weekend special where they sell the treat at “10% above cost”. What was their rate of markdown on the treat? Give your answer as a percent rounded to 2 decimal places.

6. Bill's retirement plan consists of contributing $130 at the end of each month into an RRSP. If the plan earns 4.4% compounded quarterly for the first ten years and 6% compounded semiannually thereafter, how much money will be in Bill's RRSP at the end of a thirty year term?

7. Ellenor pays month-end payments of $292 into her RRSP for 25 years. The RRSP has an interest rate of 7% compounded quarterly. At the end of 25 years, she purchases an annuity that will pay her bi-weekly payments (at the end of each bi-weekly period) for 31 years. The interest of the annuity is 7% compounded semi-annually. How much are Ellenor's biweekly payments when she retires?

8. Paul makes car payments of $4668 at the end of each six month period for 3 years followed by month-end payments of $645 for a further 2 years. If interest is calculated at 6% semiannually, what was the value of the car at the time of purchase?

9. A debt of $1710 was due 130 days ago and one of $1851 is due in 260 days. A credit advisor decides you should settle the debts with two equal payments: the first payment is to be made today and the second in 442 days from today. Find the size of the equal payments if interest is 5% per annum. Use today as your focal date, and give your answer rounded to the nearest cent.

10. Jacob has just agreed to take a loan that will require him to make payments of $105 at the end of each month for the next six years. If interest on the loan is calculated at a rate of 6% compounded quarterly, what was the original loan amount?

11. Victoria plans to make deposits of $310 at the end of every three months into a savings account in the hopes of saving up for a used car. If the account earns interest at a rate of 6% compounded quarterly, how much money will she have after 5 years?

12.Paul makes car payments of $4941 at the end of each six month period for 2 years followed by month-end payments of $763 for a further 3 years. If interest is calculated at 6% semiannually, what was the value of the car at the time of purchase?

13. Ellenor pays month-end payments of $142 into her RRSP for 30 years. The RRSP has an interest rate of 7% compounded quarterly. At the end of 30 years, she purchases an annuity that will pay her bi-weekly payments (at the end of each bi-weekly period) for 25 years. The interest of the annuity is 5% compounded semi-annually. How much are Ellenor's biweekly payments when she retires?

14. Bill's retirement plan consists of contributing $140 at the end of each month into an RRSP. If the plan earns 6.8% compounded quarterly for the first ten years and 6% compounded semiannually thereafter, how much money will be in Bill's RRSP at the end of a thirty year term?

15. Nathan has a loan of $5000 to repay, with an interest rate of 6% compounded monthly. Nathan planned to make $150 payments at the end of each month to repay his loan, but is considering only $100 per month. How many additional months will it take to repay the loan if he pays $100 per month instead of $150?

(Hint: Round each term in months up to a whole number before finding the difference.)

16. Ronald has $17046 saved in his RRSP. He wishes to retire in 27 years and will make quarterly contributions to his RRSP at the end of every quarter. Interest is 3% compounded weekly. He wants to have $407698 saved by his retirement. How much should his contributions be?

17. Joey buys a new Honda civic for $19410. He agrees to payments at the end of every month for 7 years. If interest is 5% compounded quarterly, what are Joey's payments?

18. Shirley wants to go on a trip to Hawaii. She budgets that she can save $195 at the end of every month, and interest in her account is 5% compounded biweekly. By looking at prices, she knows that the trip will cost her $7195 total. How long in years (round to two decimal places) will it take before she can go on her trip?

19. Victoria plans to make deposits of $520 at the end of every three months into a savings account in the hopes of saving up for a used car. If the account earns interest at a rate of 5% compounded quarterly, how much money will she have after 5 years?

20. Jacob has just agreed to take a loan that will require him to make payments of $110 at the end of each month for the next six years. If interest on the loan is calculated at a rate of 6% compounded quarterly, what was the original loan amount?

Answer 1

		Bi weekly interest rate =(8/24)%=0.3333%=0.003333
		Monthly Interest =(1.003333^2)-1=0.006678=0.6678%
	Rate	Interest Rate Per Period (Month)	0.6678%
	Pmt	Monthly Savings	$108
	Fv	Required Future Value of Savings	$4,813
	NPER	Number of months of savings required	39.141851	(Using NPER function of excel with Rate=0.6678%, Pmt=-108,Fv=4813)
		Number of Years it will take=39.141851/12=	3.26
		NOTE: As per HOMEWORKLIB RULES, only one question should be answered