Question 1

Note: The calculations for this question were done using Excel's RATE function.
What nominal rate of interest is paid on quarterly RRSP contributions of $573.00 made for 17.75 years if the balance just after the last contribution is $106 000.00?

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Question 2

What is the nominal rate of interest if a six-year loan of $71 000.00 is repaid by monthly payments of $1701.58?

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Question 3

Note: The calculations for this question were done using Excel's RATE function.
What is the effective annual rate of interest on a loan of $9200.00 repaid in semi-annual installments of $810.00 in nine years?

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Question 4

What nominal rate of interest is earned by monthly deposits of $560.00 made for 6 years if the balance just after the last deposit is $52 700.00?

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Question 5

Note: The calculations for this question were done using Excel's RATE function.
A property worth $191 000.00 can be purchased for 15% down and quarterly mortgage payments of $1972.00 for 30 years. What effective rate of interest is charged?

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Question 6

Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31 300.00, how many deposits are needed?

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Question 7

How many yearly payments will it take for $25 000.00 deposited at the end of each year to amount to $1 000 000.00 at 9% compounded yearly?

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Question 8

$1000.00 is deposited at the end of every month into an account earning 6.00% compounded monthly. If the balance in the account five years after the last deposit is to be $50 000.00, how many deposits are needed?

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Question 9

What is the term of a mortgage of $235 000.00 repaid by monthly payments of $2475.00 if interest is 7.55% compounded monthly?

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Question 10

A $15 000.00 loan requires payments at the end of each month for five years. If the interest rate on the loan is 12% compounded monthly, calculate the size of each payment.

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Question 11

What is the nominal rate of interest on a loan of $6800.00 repaid in semi-annual installments of $1175.00 in six years?

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Question 12

In what period of time could you pay back a loan of $13 900.00 by making monthly payments of $296.00 if interest is 6.5% compounded monthly?

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Question 13

How many quarterly payments will it take for $400.00 deposited at the end of each quarter to amount to $11 453.40 at 6% compounded quarterly?

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Question 14

Compute the nominal annual rate of interest (compounded monthly) at which $200.00 deposited at the end of each month for ten years will amount to $30 000.00.

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Question 15

Bonny converted an RRSP balance of $176 875.67 into an RRIF that will pay her $2720.00 at the end of every month for 8 years. What is the nominal rate of interest?

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Question 16

What deposit made at the end of each quarter will accumulate to $20 000.00 in four years at 4% compounded quarterly?

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Question 17

A loan of $19 850.00 is to be repaid in quarterly payments of $620.00. How many payments are required to repay the loan at 6.5% compounded quarterly?

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Question 18

How many semi-annually payments will it take for $500.00 deposited at the end of each half year to amount to $10 000.00 at 6% compounded semi-annually?

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Question 19

How many monthly payments will it take for $1000.00 deposited at the end of each month to amount to $50 000.00 at 9% compounded monthly?

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Question 20

A $5000.00 loan requires payments at the end of each quarter for five years. If the interest rate on the loan is 8% compounded quarterly, calculate the size of each payment.

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Quiz 11: Ordinary Simple Annuities

Note: The calculations for this question were done using Excel's RATE function. What nominal rate of interest is paid on quarterly RRSP contributions of $573.00 made for 17.75 years if the balance just after the last contribution is $106 000.00?

What is the nominal rate of interest if a six-year loan of $71 000.00 is repaid by monthly payments of $1701.58?

Note: The calculations for this question were done using Excel's RATE function. What is the effective annual rate of interest on a loan of $9200.00 repaid in semi-annual installments of $810.00 in nine years?

What nominal rate of interest is earned by monthly deposits of $560.00 made for 6 years if the balance just after the last deposit is $52 700.00?

Note: The calculations for this question were done using Excel's RATE function. A property worth $191 000.00 can be purchased for 15% down and quarterly mortgage payments of $1972.00 for 30 years. What effective rate of interest is charged?

Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31 300.00, how many deposits are needed?

How many yearly payments will it take for $25 000.00 deposited at the end of each year to amount to $1 000 000.00 at 9% compounded yearly?

$1000.00 is deposited at the end of every month into an account earning 6.00% compounded monthly. If the balance in the account five years after the last deposit is to be $50 000.00, how many deposits are needed?

What is the term of a mortgage of $235 000.00 repaid by monthly payments of $2475.00 if interest is 7.55% compounded monthly?

A $15 000.00 loan requires payments at the end of each month for five years. If the interest rate on the loan is 12% compounded monthly, calculate the size of each payment.

What is the nominal rate of interest on a loan of $6800.00 repaid in semi-annual installments of $1175.00 in six years?

In what period of time could you pay back a loan of $13 900.00 by making monthly payments of $296.00 if interest is 6.5% compounded monthly?

How many quarterly payments will it take for $400.00 deposited at the end of each quarter to amount to $11 453.40 at 6% compounded quarterly?

Compute the nominal annual rate of interest (compounded monthly) at which $200.00 deposited at the end of each month for ten years will amount to $30 000.00.

Bonny converted an RRSP balance of $176 875.67 into an RRIF that will pay her $2720.00 at the end of every month for 8 years. What is the nominal rate of interest?

What deposit made at the end of each quarter will accumulate to $20 000.00 in four years at 4% compounded quarterly?

A loan of $19 850.00 is to be repaid in quarterly payments of $620.00. How many payments are required to repay the loan at 6.5% compounded quarterly?

How many semi-annually payments will it take for $500.00 deposited at the end of each half year to amount to $10 000.00 at 6% compounded semi-annually?

How many monthly payments will it take for $1000.00 deposited at the end of each month to amount to $50 000.00 at 9% compounded monthly?

A $5000.00 loan requires payments at the end of each quarter for five years. If the interest rate on the loan is 8% compounded quarterly, calculate the size of each payment.