Questions from Business Mathematics

Q: An RRSP is now worth $223,000 after contributions of

An RRSP is now worth $223,000 after contributions of $2500 at the beginning of every six months for 16 years. What effective rate of return has the plan earned?

Q: Pembroke Golf Club’s initiation fee is $5500. It offers an

Pembroke Golf Club’s initiation fee is $5500. It offers an installment payment alternative of $1000 down and $1000 at the end of each year for five years. What effective rate of interest is being char...

Q: Evaluate values of the variables. Calculate the result accurate to the

Evaluate values of the variables. Calculate the result accurate to the nearest cent. P(1 + i)n for P = $1280, i = 0.025, n = 3

Q: If contributions of $1500 at the beginning of every three months

If contributions of $1500 at the beginning of every three months resulted in an RRSP worth $327,685 after 20 years, what quarterly compounded nominal rate and effective rate of return did the RRSP ear...

Q: As of the date of Victory Machine Shop’s most recent financial statements

As of the date of Victory Machine Shop’s most recent financial statements, three years remained in the term of a capital lease reported as a long-term liability of $13,824. If the beginning-of-month l...

Q: If a furniture store offers to sell a refrigerator priced at $

If a furniture store offers to sell a refrigerator priced at $1195 on a conditional sale contract requiring 12 monthly payments of $110 (including a payment on the date of sale), what effective rate o...

Q: For the past 13 years, Ms. Perrault has contributed $

For the past 13 years, Ms. Perrault has contributed $2000 at the beginning of every six months to a mutual fund. If the mutual fund statement at the end of the 13 years reports that her fund units are...

Q: Advantage Leasing Ltd. is in the business of purchasing equipment,

Advantage Leasing Ltd. is in the business of purchasing equipment, which it then leases to other companies. Advantage calculates the payments on its five-year leases so that it recovers the original c...

Q: For how long will a $100,000 fund sustain beginning

For how long will a $100,000 fund sustain beginning-of-month withdrawals of $700 if the fund earns: 1. 4% compounded monthly? 2. 5% compounded monthly? 3. 6% compounded monthly? 4. 7% compounded month...

Q: Mr. and Mrs. Friedrich have just opened an RESP for

Mr. and Mrs. Friedrich have just opened an RESP for their daughter. They want the plan to pay $3000 at the beginning of each half-year for four years, starting nine years from now when their daughter...