Questions from Business Mathematics

Q: How long will it take for monthly payments of $800 to

How long will it take for monthly payments of $800 to repay a $100,000 loan if the interest rate on the loan is: 1. 6% compounded monthly? 2. 7% compounded monthly? 3. 8% compounded monthly? 4. 9% com...

Q: How long will it take for monthly payments of $740 to

How long will it take for monthly payments of $740 to repay a $100,000 loan if the interest rate on the loan is: 1. 7.5% compounded annually? 2. 7.5% compounded semiannually? 3. 7.5% compounded quarte...

Q: How long will it take an RESP to grow to $200

How long will it take an RESP to grow to $200,000 if the plan owner contributes $250 at the end of each month and the plan earns: 1. 8% compounded monthly? 2. 8% compounded quarterly? 3. 8% compounded...

Q: Rounded to the next higher month, how long will it take

Rounded to the next higher month, how long will it take end-of-month deposits of $500 to accumulate $100,000 in an investment account that earns 5.25% compounded monthly?

Q: Silas is about to begin regular month-end contributions of $

Silas is about to begin regular month-end contributions of $500 to a bond fund. The fund’s long-term rate of return is expected to be 6% compounded semiannually. Rounded to the next higher month, how...

Q: How long will $500,000, in an investment account

How long will $500,000, in an investment account that earns 3.25% compounded monthly, sustain month-end withdrawals of $3000?

Q: Farah has $600,000 in her RRSP and wishes to

Farah has $600,000 in her RRSP and wishes to retire. She is thinking of using the funds to purchase an annuity that earns 5% compounded annually and pays her $3500 at the end of each month. If she buy...

Q: If $300,000 is used to purchase an annuity earning

If $300,000 is used to purchase an annuity earning 7.5% compounded monthly and paying $2500 at the end of each month, what will be the term of the annuity?

Q: 1. How long will it take monthly payments of $400

1. How long will it take monthly payments of $400 to repay a $50,000 loan if the interest rate on the loan is 8% compounded semiannually? 2. How much will the time to repay the loan be reduced if the...

Q: How much longer will it take month-end RRSP contributions of

How much longer will it take month-end RRSP contributions of $500 to accumulate $500,000 than month-end contributions of $550? Assume that the RRSP earns 7.5% compounded monthly. Round the time requir...