Questions from Business Mathematics

Q: Mr. Donatelli moved from Toronto to Winnipeg to take a job

Mr. Donatelli moved from Toronto to Winnipeg to take a job promotion. After selling their Toronto home and buying a home in Winnipeg, the Donatellis have $85,000 in cash on hand. If the funds are used...

Q: What amount must be invested today to provide for quarterly payments of

What amount must be invested today to provide for quarterly payments of $2500 at the end of every quarter for 15 years after a six-year deferral period? Assume that the funds will earn 5% compounded s...

Q: What is the current economic value of an inheritance that will pay

What is the current economic value of an inheritance that will pay $2000 to the beneficiary at the beginning of every three months for 20 years, starting when the beneficiary reaches 20 years of age,...

Q: To sell a farm that it had acquired in a foreclosure action

To sell a farm that it had acquired in a foreclosure action, the RBC Royal Bank agreed to monthly payments of $2700 for 20 years, with the first payment due 15 months from the date of sale. If the pur...

Q: Sabrina borrowed $30,000 at an interest rate of 7

Sabrina borrowed $30,000 at an interest rate of 7% compounded quarterly. Monthly payments of $356.83 will commence after a period of deferral and will pay off the loan over the subsequent 12 1 2 years...

Q: An investor purchased a deferred annuity contract for $4608.07

An investor purchased a deferred annuity contract for $4608.07, a price calculated to provide a rate of return on investment of 9.75% compounded monthly. The semiannual payments of $400, once started,...

Q: For how long (before the beginning of the term of the

For how long (before the beginning of the term of the annuity) must a $19,665 investment earning 3.5% compounded semiannually be allowed to grow before it can provide 60 quarterly withdrawals of $1000...

Q: What minimum initial amount of money, invested to earn 4%

What minimum initial amount of money, invested to earn 4% compounded monthly, will support a monthly payout of $500 for 3 1 2 years if the first payment occurs 2 years and 10 months from now?

Q: Simplify and collect the like terms. y ( 1 −

Simplify and collect the like terms. y ( 1 − 0.125 × 213 365 ) + 2 y 1 + 0.125   ×   88 365

Q: Duncan retired recently and plans to utilize other savings for a few

Duncan retired recently and plans to utilize other savings for a few years while his RRSP continues to grow on a tax-deferred basis. The RRSP is currently worth $142,470. How long will it be until the...