Questions from Business Mathematics

Q: Monarch Distributing Ltd. plans to accumulate funds for the purchase of

Monarch Distributing Ltd. plans to accumulate funds for the purchase of a larger warehouse seven years from now. If Monarch contributes $10,000 at the beginning of each month to an investment account...

Q: If Hans contributes $1500 to his RRSP on February 1,

If Hans contributes $1500 to his RRSP on February 1, 1998, and every six months thereafter up to and including February 1, 2025, what amount will he accumulate in the RRSP by August 1, 2025? Assume th...

Q: Many people make their annual RRSP contribution for a taxation year close

Many people make their annual RRSP contribution for a taxation year close to the end of the year. Financial advisers encourage clients to contribute as early in the year as possible. How much more wil...

Q: For the past 25 years, Giorgio has contributed $2000 to

For the past 25 years, Giorgio has contributed $2000 to his RRSP at the beginning of every six months. The plan earned 8% compounded annually for the first 11 years and 7% compounded semiannually for...

Q: Keiko has already accumulated $150,000 in her RRSP.

Keiko has already accumulated $150,000 in her RRSP. She intends to continue to grow her RRSP by making contributions of $500 at the beginning of every month. How much will her RRSP be worth 15 years f...

Q: At what price would Arrowsmith Lumber be willing to purchase the timber

At what price would Arrowsmith Lumber be willing to purchase the timber rights described in Problem 4 if it requires a return on investment of 9%? Data from Problem 4: The timber rights to a tract of...

Q: To attract shoppers, retailers occasionally advertise something like “Pay no

To attract shoppers, retailers occasionally advertise something like “Pay no HST!” Needless to say, neither the federal nor the provincial government is willing to forgo its sales tax. In this situati...

Q: Johan recently received his annual performance bonus from his employer. He

Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2000 each year from his bonus and $400 per month from his...

Q: What will be the amount in an RRSP after 25 years if

What will be the amount in an RRSP after 25 years if contributions of $2000 are made at the beginning of each year for the first 10 years, and contributions of $4000 are made at the beginning of each...

Q: Fay contributed $3000 per year to her RRSP on every birthday

Fay contributed $3000 per year to her RRSP on every birthday from age 21 to 30 inclusive. She then ceased employment to raise a family and made no further contributions. Her husband Fred contributed $...