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Question 7:

In how many days will $770.00 grow to $880.00 at 11.5% p.a. compounded monthly?  (4 marks)

 

 

Question 8:

 

If the effective rate of interest on an investment is 7%, what is the nominal rate of interest compounded quarterly?  (4 marks)

 

Question 9:

 

At what nominal rate of interest compounded quarterly will $2000.00 earn $400.00 interest in three years?  (4 marks)

 

 

Question 10:

 

Karen started a registered retirement savings plan on February 1, 2000, with a deposit of $2210. She added $2000 on February 1, 2001, and $1475 on February 1, 2004. What is the accumulated value of her RRSP account on August 1, 2005, if interest is 10.44% compounded quarterly?  (8 marks)

 

Question 11:

 

In how many years will money triple at 12% compounded semi-annually? (4 marks)

 

Question 12:

 

Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.  (8 marks)

Hint:  Let the size of the equal payments be $x, and the focal point now.