Assignment Detail

1. Your investment of $9,000 that you started six years ago earned 7.3% compounded quarterly for the first 3¼ years, followed by 8.2% compounded monthly after that. How much interest has your investment earned so far?

2. A $30,000 loan at 4.9% compounded semi-annually is to be repaid with four equal semi-annual payments. The first payment is one year after the loan. Calculate the amount of each payment.

3. Muriel just received $4,620.01 including $840.01 of interest as payment in full for a sum of money that was loaned 2 years and 11 months ago. What monthly compounded rate of interest was charged on the loan?

4. RBC is offerng you a four-year fixed rate compound interest GIC at 3.8% compounded quarterly. TD Canada Trust is offering you a variable rate compound interest GIC at 3.4% for the first two years, followed by 4.25% for the remaining two years. If you have $10,000 to invest, which GIC should you select? How much more interest will you earn from the selected GIC than from the alternative?

5. Determine the proceeds of the sale on a seven-year noninterest-bearing promissory note for $1,600, discounted 45 months before its due date at a discount rate of 8.2% compounded quarterly.