Wendy will soon turn 33. She wants to accumulate $500,000 in an RRSP by her 60th birthday. How much larger will her annual contributions have to be if they are made at the end of each year (from age 33 to age 60) instead of at the beginning of each year? Assume that her RRSP will earn 9% compounded annually.
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Mayfair Fashions has a $90,000 line of credit from the Bank of Montreal. Interest at prime plus 2% is deducted from Mayfair's chequing account on the 24th of each month. Mayfair initially drew down $40,000 on March 8 and another $15,000 on April 2. On June 5, $25,000 of principal was repaid. If the prime rate was 5.25% on March 8 and rose by 0.25% effective May 13, what were the first four interest deductions charged to the store's account?
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What total amount must be paid on May 4 to settle invoices dated April 20 for $650, April 24 for $790, and April 30 for $465, all with terms 1½/10, n/30?
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Anthony began the year with $96,400 already invested in his Snow 'n Ice retail store. He withdrew $14,200 on March 1 and another $21,800 on April 1. On August 1, he invested $23,700, and on November 1 he contributed another $19,300. What was his average cumulative investment during the year? (Assume that each month has the same length. )
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If the invested funds earn 13% compounded quarterly what amount invested at the end of every six months for 15 years will accumulate to $295,000?
▸ $23,415
▸ $22,838
▸ $5,953
▸ $1,649
▸ $3,352
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RBC Royal Bank approved a four-year $20,000 Royal Buy-Back Car Loan to Zaman at 7.5% compounded monthly. The monthly payments are to reduce the balance on the loan to the Royal Bank's guaranteed buy-back value of $7250. Calculate the monthly payment.
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Twenty years ago Harminder invested $2,000. For the first 10 years he earned 13% compounded semiannually. For the next 10 years he earned 8% compounded quarterly. To the nearest dollar, what was the value of the investment now, at the end of the 20 years?
▸ $5,927
▸ $9,185
▸ $17,292
▸ $14,732
▸ $15,561
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An initial $1800 investment was worth $2299.16 after two years and nine months. To the nearest 0.01%, what quarterly compounded nominal rate of return did the investment earn?
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Ramon wishes to replace payments of $900 due today and $500 due in 22 months by a single equivalent payment 18 months from now? If money is worth 5% compounded monthly, what should that payment be?
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Suppose that the current rates on 60 and 120-day GICs are 5.50% and 5.75%, respectively. An investor is weighing the alternatives of purchasing a 120-day GIC versus purchasing a 60-day GIC and then reinvesting its maturity value in a second 60-day GIC. What would the interest rate on 60-day GICs have to be 60 days from now for the investor to end up in the same financial position with either alternative? Round to the nearest 0.001%
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