PLEASE SHOW YOUR WORK 7) Calculate the current value of $5300 due in five years, eight months discounted at 4.0% compounded semi-annually.

PLEASE SHOW YOUR WORK

7) Calculate the current value of $5300 due in five years, eight months discounted at 4.0% compounded semi-annually.  (4 marks)

8) A loan of $2800 borrowed today is to be repaid in three equal instalments due in one year, three years, and five years respectively. What is the size of the equal instalments if money is worth 6.9% compounded monthly?  (6 marks)

9) A loan of $1850 was repaid together with interest of $590.50. If interest was 7% compounded quarterly, for how many months was the loan taken out?  (5 marks)

10)  Mr. D. borrowed $1200 and agreed to pay $1400 in settlement of the debt in three years, three months. What annual nominal rate compounded quarterly was charged on the debt? Show all calculations. (4 marks)

11) What nominal rate of interest compounded quarterly is equivalent to an effective rate of 5.44%?  (4 marks)

12)  Josef invested $2100 into an RRSP that earned interest at 6% compounded semi-annually for ten years.  (4 marks)

         a) Find the balance of the account at the end of the 10 year period.

         b) How much interest is earned?

         c) What is the effective rate of interest?