Questions from Business Mathematics

Q: The present value of an ordinary annuity of $500 per month

The present value of an ordinary annuity of $500 per month for 8 3 4 years is $35,820. Calculate the nominal and effective values for the discount rate.

Q: If RRSP contributions of $3030.02 at the end of

If RRSP contributions of $3030.02 at the end of every six months are projected to generate a plan worth $500,000 in 25 years, what nominal and effective rates of return were assumed in the forecast?

Q: With end-of-month contributions of $251.33

With end-of-month contributions of $251.33, a TFSA is expected to pass $100,000 in value after 15 years and 5 months. Determine the nominal and effective rates of return used in the projection.

Q: Monty is checking potential outcomes for the growth of his RRSP.

Monty is checking potential outcomes for the growth of his RRSP. He plans to make contributions of $500 at the end of each month. What nominal rate of return must his RRSP earn for its future value af...

Q: Angie’s Flower Shop charges 13% HST on all purchases.

Angie’s Flower Shop charges 13% HST on all purchases. 1. How much HST will she report for a plant priced at $39.45? 2. As of February 4, 2013, if a consumer pays cash and cannot give the exact change,...

Q: Morgan has $500,000 accumulated in her RRSP and intends

Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year annuity. She is investigating the size of annuity payment she can expect to receive, depending on the ra...

Q: If $100,000 will purchase a 20-year annuity

If $100,000 will purchase a 20-year annuity paying $830 at the end of each month, what monthly compounded nominal rate and effective rate of interest will the invested funds earn?

Q: If regular month-end deposits of $200 in an investment

If regular month-end deposits of $200 in an investment account amounted to $7727.62 after three years, what monthly compounded nominal rate and effective rate of interest were earned on the account?

Q: After 10 1 2 years of contributions of $2000 at the

After 10 1 2 years of contributions of $2000 at the end of every six months to an RRSP, the accumulated amount stood at $65,727.82. What semiannually compounded nominal rate of return and effective an...

Q: Annual contributions of $1000 will be made to a TFSA for

Annual contributions of $1000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 years if the...