Question: To settle a $570 invoice, Anna can

> Your local credit union offers the rates shown in the following table for short-term non-redeemable, non-registered GICs. How much more interest will an investor earn by placing $15,000 in a 180-day GIC than by purchasing two consecutive 90-day GICs? (As

> The rates offered by a bank on deposits between $10,000 and $24,999 are shown in the following table: How much more will an investor earn from a $10,000 investment in a 364-day GIC than from two consecutive 182-day GICs? (Assume that the interest rate on

> Using the rate table from Question #2, how much more will an investor earn from a single $60,000, 270-day GIC than from two $30,000, 270-day GICs?

> The rates offered by a credit union for its non-redeemable 90- to 365-day GICs are shown in the following table: Early redemption is permitted but will result in the rate being reduced to 1.75%. How much more interest will a 91-day $20,000 term deposit e

> For principal amounts of $5000 to $49,999, a bank pays an interest rate of 2.95% on 180- to 269-day non-redeemable GICs, and 3.00% on 270- to 364-day non-redeemable GICs. Ranjit has $10,000 to invest for 364 days. Because he thinks interest rates will be

> The Super Savings account offered by a trust company calculates interest daily based on the lesser of each day’s opening or closing balance as follows: September’s opening balance was $8572. The transactions in the acc

> Aletta’s annual salary of $58,800 is paid weekly. She is paid at time and a half for any overtime beyond her regular workweek of 35 hours. What is her gross pay for a week in which she works 39 hours?

> The Moneybuilder account offered by a chartered bank calculates interest daily based on the daily closing balance as follows: The balance at the beginning of March was $1678. On March 5, $700 was withdrawn. Then $2500 was deposited on March 15, and $900

> An Investment Savings account offered by a trust company calculates interest daily based on the daily closing balances as follows: What interest will be paid for the month of April if the opening balance was $2439, $950 was deposited on April 10, and $50

> Suppose that the current rates on 90- and 180-day GICs are 3.25% and 3.50%, respectively. An investor is weighing the alternatives of purchasing a 180-day GIC versus purchasing a 90-day GIC and then reinvesting its maturity value in a second 90-day GIC.

> Joan has savings of $12,000 on June 1. Since she may need some of the money during the next three months, she is considering two options at her bank. (1) An Investment Builder account earns a 2.25% rate of interest. The interest is calculated on the dail

> A savings account pays interest of 1.5%. Interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. A depositor had a $2239 opening balance on September 1, deposited $734 on September 7 and $327 on

> 1. What will be the maturity value of $15,000 placed in a 120-day term deposit paying an interest rate of 2.25%? 2. If, on the maturity date, the combined principal and interest are “rolled over” into a 90-day term deposit paying 2.15%, what amount will

> A payment of $850 scheduled to be paid today and a second payment of $1140 to be paid nine months from today are to be replaced by a single equivalent payment. What total payment made today would place the payee in the same financial position as the sche

> Two payments of $3000 each are due in 50 and 100 days. What is their combined economic value today if money can earn: 1. 9%? 2. 11%? 3. Explain why the answer in part (b) is smaller.

> Two payments of $2000 each are to be received 6 and 12 months from now. If money is worth 5%, what is the total equivalent value of the payments: 1. Today? 2. Six months from today? 3. Explain why the answer in part (b) is larger.

> What single payment, made 45 days from now, is economically equivalent to the combination of three equal payments of $1750 each: one due 75 days ago, the second due today, and the third due 75 days from today? Money is worth 9.9% per annum.

> Express decimal and percent equivalent forms to five-figure accuracy. 2 2 100

> A payment stream consists of three payments: $1000 due today, $1500 due 70 days from today, and $2000 due 210 days from today. What single payment, 60 days from today, is economically equivalent to the payment stream if money can be invested at a rate of

> What is the equivalent value, 30 days from now, of a payment stream comprised of $2500 due 70 days from now and $4000 due 200 days from now? Assume money can earn 6 1 4%.

> Payments of $900 due 30 days from now and $1000 due 210 days from now are to be replaced with a single equivalent payment 90 days from now. If money can be invested at 4%, what single payment made 90 days from now is equivalent to the payment stream?

> A payment stream consists of $1000 payable now and $1500 payable five months from now. What is the equivalent value of the payment stream two months from now if money is worth 5.5%?

> Three payments of $2000 each (originally due six months ago, today, and six months from now) have been renegotiated to two payments: $3000 due one month from now and a second payment due in four months. What must the second payment be for the replacement

> Payments of $2600, due 50 days ago, and $3100, due in 40 days, are to be replaced by payments of $3000 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earn

> Ninety days ago Stella signed an agreement with Manon requiring her to make three payments of $400 plus interest 90, 150, and 210 days, respectively, from the date of the agreement. Each payment was to include interest on the $400 principal at the rate o

> Eight months ago, Louise agreed to pay Thelma $750 and $950, 6 and 12 months, respectively, from the date of the agreement. With each payment, Louise agreed to pay interest on the respective principal amounts at the rate of 6.5% from the date of the agre

> What is the economic value today of each of the following payment streams if money can earn 7.5%? (Note that the two streams have the same total nominal value.) 1. $1000, $3000, and $2000 due in one, three, and five months, respectively. 2. Two $3000 pay

> If money earns 3.5%, calculate and compare the economic value today of the following payment streams: Stream 1: Payments of $900 due 150 days ago and $1400 due 80 days ago. Stream 2: Payments of $800 due in 30 days, $600 due in 75 days, and $1000 due in

> Express decimal and percent equivalent forms to five-figure accuracy. 1000 25

> A college can purchase a telephone system for $35,000 or lease a system for five years for a front-end charge of $3000 and regular payments of $1500 at the beginning of every quarter (including the first quarter). The system can be purchased at the end o

> Payments of $1300 due five months ago and $1800 due three months from now are to be replaced by a single payment at a focal date one month from now. What is the size of the replacement payment that would be equivalent to the two scheduled payments if mon

> Payments of $500 originally scheduled to be paid today and $300 originally scheduled to be paid three months from today are to be replaced with a single payment six months from today. Calculate the combined equivalent value of the two payments six months

> Ruth-Ann has the option of paying $1936.53 today or $1975.00 100 days from today. What annual rate of return would money have to earn for the two options to be economically equivalent?

> Avril owes Value Furniture $1600, which is scheduled to be paid on August 15. Avril has surplus funds on June 15 and will settle the debt early if Value Furniture will make an adjustment reflecting the current short-term interest rate of 7.25%. What amou

> Rasheed wishes to postpone for 90 days the payment of $450 that he owes to Roxanne. If money now earns 2.75%, what amount can he reasonably expect to pay at the later date?

> What amount received on January 13 is equivalent to $1000 received on the preceding August 12 if money can earn 9.5%?

> What amount paid on September 24 is equivalent to $1000 paid on the following December 1 if money can earn 5%?

> What amount should be accepted as equivalent 60 days before an obligation of $1480 is due if money can earn 6 3 4 %?

> What payment 174 days from now is equivalent to $5230 paid today? Assume that money is worth 5.25% per annum.

> What interest rate must money earn for a payment of $1389 on August 20 to be equivalent to a payment of $1348 on the previous March 29?

> Express decimal and percent equivalent forms to five-figure accuracy. 25 1000

> Westwood Homes is beginning work on its future College Park subdivision. Westwood is now pre-selling homes that will be ready for occupancy in nine months. Westwood is offering $5000 off the $295,000 selling price to anyone making an immediate $130,000 d

> Mr. and Mrs. Chan have listed for sale a residential building lot they own in a nearby town. They are considering two offers. The offer from the Smiths is for $145,000 consisting of $45,000 down and the balance to be paid in six months. The offer from th

> During its 50/50 Sale, Marpole Furniture will sell its merchandise for 50% down, with the balance payable in six months. No interest is charged for the first six months. What 100% cash price should Marpole accept on a $1845 chesterfield and chair set if

> A $3000 payment is scheduled for six months from now. If money is worth 6.75%, calculate the payment’s equivalent values at two-month intervals beginning today and ending one year from now.

> A $5000 payment is scheduled for 120 days from now. If money can earn 7.25%, calculate the payment’s equivalent value at each of nine different dates—today and every 30 days for the next 240 days.

> Caleb has a $1215 loan payment due today but he would like to defer the payment for seven months. How much is the equivalent payment seven months from today if he is being charged interest on the loan at 8 1 2 % per annum?

> Nicholas can purchase the same furniture from Store A for $2495 cash or from Store B for $2560 with nothing down and no payments or interest for 8 months. Which option should Nicholas choose if he can pay for the furniture by cashing in Canada Savings Bo

> Jonas recently purchased a one-year membership at Gold’s Gym. He can add a second year to the membership now for $1215, or wait 11 months and pay the regular single-year price of $1280. Which is the better economic alternative if money is worth 8.5%? At

> Compare the economic values of $1480 today versus $1515 in 150 days. Assume money can earn 6.75%. At what rate would the two amounts be equivalent?

> Express decimal and percent equivalent forms to five-figure accuracy. 1 7 25

> If money can be invested at 0.6% per month, which has the greater economic value: $5230 on a specific date or $5500 exactly five months later? At what rate (per month) would the two amounts be economically equivalent?

> April missed a payment of $2740.00 on a loan with interest being charged at 4 1 2 % . The lender now wants $2755.20 as a late payment to settle up on the missed payment. How many days late was the payment?

> An early payment of $4574.73 was accepted instead of a scheduled payment of $4850.00, allowing for interest at the rate of 8 3 4 % . How many days early was the payment?

> What is the time interval (in months) separating equivalent payments of $3500.00 and $3439.80 if money is worth 5 1 4 % per annum?

> A late payment of $850.26 was considered equivalent to the originally scheduled payment of $830.00, allowing for interest at 9.9%. How many days late was the payment?

> Cyril can purchase a trip to Aruba for an early booking price of $2370.00 now or wait 190 days and pay $2508.79. What annual rate of return would money have to earn for the two options to be economically equivalent?

> Kathleen has a $560 loan payment due in five months. What amount of money should she be able to pay today if the interest on her loan is 3 3 4 % per annum?

> What was the interest rate on a $1750 loan, if the amount required to pay off the loan after five months was $1828.02?

> $7348.25 was the amount required to pay off a loan after 14 months. If the loan was at 8 1 4 % per annum simple interest, how much of the total was interest?

> The balance after 11 months, including interest, on a loan at 9.9% is $15,379.58. What are the principal and interest components of the balance?

> Express decimal and percent equivalent forms to five-figure accuracy. -35 25

> The maturity value of an investment earning 7.7% per annum for a 360-day term was $2291.01. What amount was originally invested?

> What was the principal amount of a loan at 10 1 2 % , if total amount owed after 23 days was $785.16?

> Cecile placed $17,000 in a 270-day term deposit earning 4.25%. How much will the bank pay Cecile on the maturity date?

> What will be the maturity value in 15 months of a $4500 loan at a simple interest rate of 7.9%?

> Dominion Contracting invested surplus funds in term deposits. All were chosen to mature on April 1 when the firm intends to purchase a new grader. What total amount will be available from the maturing term deposits on April 1 (of a leap year)?

> The cash balance in Amalia’s account with her stockbroker earns interest on the daily balance at an annual rate of 4%. Accrued interest is credited to her account every six months—on June 30 and December 31. As a resul

> Village Finance Co. advanced three loans to Kamiko—$2200 on June 23, $1800 on August 5, and $1300 on October 31. Simple interest at 7.25% was charged on all three loans, and all were repaid on December 31 when some bonds that she owned matured. What tota

> On what date did a corporation borrow $350,000 at 7.5% from its bank if the debt was settled by a payment of $356,041 on February 28?

> Karin borrowed $2000 at 10 1 4 % on July 13. On what date would the amount owed first exceed $2100?

> How many days will it take $2500 to grow to $2614.47 at an annual rate of 8.75%?

> Express decimal and percent equivalent forms to five-figure accuracy. -9 16

> A&B Appliances sells a washer-dryer combination for $1535 cash. C&D Appliances offers the same combination for $1595 with no payments and no interest for six months. Therefore, you can pay $1535 now or invest the $1535 for six months and then pay $1595.

> The snow tires that you are planning to buy next October 1 at the regular price of $107.50 each are advertised at $89.95 in a spring clearance special that will end on the preceding March 25. What annual rate of simple interest will you earn if you “inve

> $12,800 was invested in a 237-day term deposit earning 3 3 4 % . What was its maturity value?

> The annual $3600 membership fee at the Oak Meadows Golf Club is due at the beginning of the year. Instead of a single “lump” payment, a member can pay $1600 at the start of the year and defer the $2000 balance for five months by paying a $75 surcharge at

> The bookkeeper for Durham’s Garage is trying to allocate to principal and interest a payment that was made to settle a loan. The cheque stub has the note “$3701.56 for principal and 7 months’ interest at 12.5%.” What are the principal and interest compon

> Judith received the proceeds from an inheritance on March 25. She wants to set aside enough on March 26 so that she will have $20,000 available on October 1 to purchase a car when the new models are introduced. If the current interest rate on 181- to 270

> The interest rate on an $859.50 debt was 10 1 4 % . For how many months was the loan outstanding if it was settled with a payment of $907.22?

> A $7760 investment earning 6 1 4 % matured at $8083.33. What was the term (in months) of the investment?

> The amount required to pay off a $3500 loan at 8.4% was $3646.60. What was the term (in days) of the loan?

> Janesh has savings of $9625.63. If he can invest this amount to earn 2.8%, how many days will it take for the investment to grow to $9,800?

> Express decimal and percent equivalent forms to five-figure accuracy. 47 20

> The amount required to settle a $680 debt after 300 days was $730.30. What rate of interest was charged on the debt?

> Marliss made a $780.82 purchase on her Visa card. Including 45 days’ interest, the amount billed on her credit card was $798.63. What annual interest rate does her card charge?

> A $2875.40 investment grew to $3000 after eight months. What annual rate of simple interest did it earn?

> What will be the maturity value after seven months of $2950 earning interest at the rate of 4 1 2 % ?

> On June 26 Laura put $2750 into a term deposit until September 3, when she needs the money for tuition, books, and other expenses to return to college. For term deposits in the 60- to 89-day range, her credit union pays an interest rate of 3%. How much i

> What was the principal amount of a loan at 9 1 2 % if $67.78 of interest accrued from October 28, 2018, to April 14, 2019?

> If $40.52 interest accrued on a $1000 guaranteed investment certificate (GIC) from January 15, 2019, to July 7, 2019, what rate of simple interest did the GIC earn?

> A $14,400 loan taken out on May 21, 2018, was repaid with interest at 11 1 4 % per annum on July 19, 2019. How much interest was paid?

> The interest rate on $27,000 borrowed on October 16, 2020, was 5.7%. How much interest was owed on the April 15, 2021, repayment date?

> $850 borrowed on January 7, 2019, was repaid with interest at an annual rate of 7% on July 1, 2019. What was the amount of interest?

> Round it to four-figure accuracy. 9.6455

> An $85,000 investment earned a 3.9% rate of simple interest from December 1, 2019, to May 30, 2020. How much interest was earned?

> The total accrued interest owed as of August 31 on a loan advanced the preceding June 3 was $169.66. If the variable interest rate started at 8 3 4 % , rose to 9% effective July 1, and increased another 1 2 % effective July 31, what was the principal amo

> How much will be required on February 1 to pay off a $3000 loan advanced on the previous September 30 if the variable interest rate began the interval at 4.7%, rose to 5.2% effective November 2, and then dropped back to 5% effective January 1?

> Penny invested $4500 on October 28 at a floating rate of interest that initially stood at 6.3%. Effective December 2, the rate dropped by 1 2 % , and then it declined another 1 4 % effective February 27. What total amount of principal plus interest will

> Mario borrowed $6000 on March 1 at a variable rate of interest. The interest rate began at 7.5%, increased to 8% effective April 17, and then fell by 0.25% effective June 30. How much interest will be owed on the August 1 repayment date?