Questions from Business Mathematics

Q: Simplify and collect the like terms. h ( 1 +

Simplify and collect the like terms. h ( 1 + 0.055 ) 2 − 3 h ( 1 + 0.055 ) 3

Q: Ranger Oil recently donated $750,000 to the Northern Alberta

Ranger Oil recently donated $750,000 to the Northern Alberta Institute of Technology (NAIT) to fund (in perpetuity) five annual bursaries for students in Petroleum Engineering Technology. If the first...

Q: An old agreement requires a town to pay $500 per year

An old agreement requires a town to pay $500 per year in perpetuity to the owner of a parcel of land for a water well dug on the property in the 1920s. The well is no longer used, and the town wants t...

Q: The alumni association of Seneca College is initiating a one-year

The alumni association of Seneca College is initiating a one-year drive to raise money for a perpetual scholarship endowment fund. The goal is to offer ten scholarships per year, each worth $5000. 1....

Q: A city sells plots in its cemetery for $1000 plus an

A city sells plots in its cemetery for $1000 plus an amount calculated to provide for the cost of maintaining the grounds in perpetuity. This cost is figured at $25 per plot due at the end of each qua...

Q: Suppose year-end contributions to an RRSP start at $3000

Suppose year-end contributions to an RRSP start at $3000 and increase by 2.5% per year thereafter. What amount will be in the RRSP after 25 years if the plan earns 9% compounded annually?

Q: Maritime Bank recently announced that its next semiannual dividend (to be

Maritime Bank recently announced that its next semiannual dividend (to be paid six months from now) will be $1.00 per share. A stock analyst’s best estimate for the growth in future dividends is 5% co...

Q: The dividends on the common shares of Mosco Inc. are forecast

The dividends on the common shares of Mosco Inc. are forecast to grow at 10% per year for the next five years. Thereafter, the best guess is that the annual dividend will grow at the same 3% annual ra...

Q: Using the Constant-Growth Annuity Chart An interactive chart for the

Using the Constant-Growth Annuity Chart An interactive chart for the future value of a constant-growth annuity is available on Connect. In Student Edition, find “Constant-Growth Annuity.” The chart ha...

Q: Chantal will make year-end contributions for 30 years to an

Chantal will make year-end contributions for 30 years to an RRSP earning 8% compounded annually. 1. How much will she have after 30 years if the annual contribution is $2000? 2. How much more will she...