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##### A mortgage of $95,000 is to be amortized by monthly payments over 25 years

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**Question**

1. A loan was repaid in five years by end-of-quarter payments of $1,200 at 9.5% compounded semi-annually. How much interest was paid? (3 marks);2. A mortgage of $95,000 is to be amortized by monthly payments over 25 years. If the payments are made at the end of each month and interest is 8.5% compounded semi-annually, what is the size of the monthly payments? (3 marks);3. A $45,000 mortgage is repaid in 20 years by making monthly payments of $387.72. What is the nominal annual rate of interest compounded semi-annually? (2 marks);4. What is the size of monthly deposits that will accumulate to $67,200 after eight years at 6.5% compounded semi-annually? (3 marks);5. Joy would like to receive $6,000 at the end of every 3 months for 10 years after her retirement. If she retires now and interest is 6.5% compounded semi-annually, how much must she deposit into an account? (3 marks);6. Find the present value of payments of $960 made at the beginning of every month for seven years if money is worth 6% compounded monthly. (2 marks);7. Bruce needs construction tools and equipment to start his new job. He has signed a lease contract valued at $5,200, and will make payments of $270 at the beginning of every three months for six years. What is the nominal annual rate of interest compounded quarterly charged on the lease? (2 marks);8. A lease requires monthly payments of $950 due in advance. If interest is 12% compounded quarterly and the term of the lease is five years, what is the cash value of the lease? (5 marks);?;9. Elsie Shen wants to withdraw $6,000 at the beginning of every 3 months for 20 years, starting at the date of her retirement. If she retires in 18 years and interest is 4.68% compounded quarterly, how much must she deposit into an account every quarter for the next 18 years, starting now? (4 marks);10. New Brunswick Bank pays a quarterly dividend of $0.75 per share. If comparable investments yield 4.16% compounded monthly, what is the sales value of the shares?;(3 marks)

Paper#20796 | Written in 18-Jul-2015

Price :*$22*