Question

1. Find the proceeds of a promissory note with a maturity value of

​$1700

due on

November

30,

2024

discounted at

3.1​%

compounded

semi-annually

on

May

31​,

2022.

The proceeds are

​$nothing.

​(Round to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

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2. Gabe

opened an RRSP deposit account on December​ 1, 2008, with a deposit of

​$1300.

He added

​$1300

on

December

​1, 2010, and

​$1300

on

JanuaryJanuary

​1, 2012. How much is in his account on

October

​1, 2016, if the deposit earns

8.3​%

p.a. compounded

monthly​?

The amount in the account is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

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3.

A loan of

​$5989

borrowed today is to be repaid in three equal installments due in

two

years​,

three

​years, and

five

​years, respectively. What is the size of the equal installments if money is worth

2.3%

compounded quarterly question markquarterly?The payments are each

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

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4.

Scheduled payments of

​$863​,

​$811​,

and

​$1491

are due in

one

year​,

four-and-a-half

​years, and

five

years respectively. What is the equivalent single replacement payment

threethree

years from now if interest is

6.6%

compounded monthly question markmonthly?The equivalent single replacement payment is

​$nothing.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

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5.

the Continental Bank advertises capital savings at

7.4​%

compounded

semi-annually

while TD Canada Trust offers premium savings at

7.33​%

compounded

monthly.

Suppose you have

​$3000

to invest for two years.

​(a) Which deposit will earn more​ interest?

​(b) What is the difference in the amount of​ interest?

​(a) The

Continental Bank

TD Canada Trust

savings account will earn more interest.​(b) The difference is

​$13.41.

​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)

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Answer 1

Answer 1)

Maturity value (V) = $1700, Time = 30,Nov,2024 – 31,May,2022 = 548 days = 1.50 years

Rate= 3.1% (annual)

Proceeds on discounting,       P = V / (1+r/n)^t*n

P = 1700 / ( 1+ 0.031/2)³

P = $ 1623.34

Answer 2)

	rate(annual)	8.30%
	Rate (monthly)	0.006916667
Date	Deposit	Time at end date	Time(year)	Amount
1/12/2008	$1,300	2859 days	7.833	$2,485.729
1/12/2010	$1,300	2129 days	5.833	$2,106.564
1/1/2012	$1,300	1733 days	4.748	$1,925.673
End date	1/10/2016		Total Amount	$6,517.967

Answer 4 ) replacement payment at 3rd year ,

Rate(annual)	6.60%
Rate(monthly)	0.55%
Payment date	amount	Time for replacemnt period(in months)	Amount
1	$863	24	984.4203754	863*(1+0.55%)^24
4.5	$811	-18	734.7566162	811*(1+0.55%)^-18
5	$1,491	-24	1307.097082	1491*(1+0.55%)^-24
		Amount	$3,026.274