Questions from Business Mathematics

Q: Interest rates were at historical highs in the early 1980s. In

Interest rates were at historical highs in the early 1980s. In August of 1981, you could earn 17.5% compounded annually on a five-year term deposit with a Canadian bank. Since then, the interest rate...

Q: Mrs. Vanderberg has just deposited $5000 in each of three

Mrs. Vanderberg has just deposited $5000 in each of three savings plans for her grandchildren. They will have access to the accumulated funds on their 19th birthdays. Their current ages are 12 years,...

Q: Nelson borrowed $5000 for 4 1 2 years. For the

Nelson borrowed $5000 for 4 1 2 years. For the first 2 1 2 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 7.5% compounded semiannually. What total amount was re...

Q: Alberto has just invested $60,000 in a five-

Alberto has just invested $60,000 in a five-year Guaranteed Investment Certificate (GIC) earning 6% compounded semiannually. When the GIC matures, he will reinvest its entire maturity value in a new f...

Q: To what amount would $12,100 grow after 3 1

To what amount would $12,100 grow after 3 1 4 years if it earned 2.5% compounded monthly?

Q: An investment of $2500 earned interest at 4.5%

An investment of $2500 earned interest at 4.5% compounded quarterly for 1 1 2 years, and then 4.0% compounded monthly for two years. How much interest did the investment earn in the 3 1 2 years?

Q: A debt of $7000 accumulated interest at 9.5%

A debt of $7000 accumulated interest at 9.5% compounded quarterly for 15 months, after which the rate changed to 8.5% compounded semiannually for the next six months. What was the total amount owed at...

Q: Megan borrowed $1900 three and a half years ago at 7

Megan borrowed $1900 three and a half years ago at 7% compounded semiannually. Two years ago she made a payment of $1000. What amount is required today to pay off the remaining principal and the accru...

Q: Duane borrowed $3000 from his grandmother five years ago. The

Duane borrowed $3000 from his grandmother five years ago. The interest on the loan was to be 5% compounded semiannually for the first three years, and 6% compounded monthly thereafter. If he made a $1...

Q: Karen works in a retail computer store. She receives a weekly

Karen works in a retail computer store. She receives a weekly base salary of $300 plus a commission of 3% of sales exceeding her quota of $20,000 per week. What are her sales for a week in which she e...