1. Find the proceeds of a promissory note with a maturity value of ?$1700 due on November 30, 2024 discounted at 3.1?% compounded semi-annually on May 31?, 2022. The proceeds...

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Finance

1. Find the proceeds of a promissory note with a maturity valueof
?$1700
due on
November
30,
2024
discounted at
3.1?%
compounded
semi-annually
on
May
31?,
2022.
The proceeds are
?$nothing.
?(Round to the nearest cent as needed. Round all intermediatevalues to six decimal places as? needed.)
Enter your answer in the answer box.
2. Gabe
opened an RRSP deposit account on December? 1, 2008, with adeposit of
?$1300.
He added
?$1300
on
December
?1, 2010, and
?$1300
on
JanuaryJanuary
?1, 2012. How much is in his account on
October
?1, 2016, if the deposit earns
8.3?%
p.a. compounded
monthly??
The amount in the account is
?$nothing.
?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)
Enter your answer in the answer box.
3.
A loan of
?$5989
borrowed today is to be repaid in three equal installments duein
two
years?,
three
?years, and
five
?years, respectively. What is the size of the equal installmentsif money is worth
2.3%
compounded quarterly question markquarterly?The payments areeach
?$nothing.
?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)
Enter your answer in the answer box.
4.
Scheduled payments of
?$863?,
?$811?,
and
?$1491
are due in
one
year?,
four-and-a-half
?years, and
five
years respectively. What is the equivalent single replacementpayment
threethree
years from now if interest is
6.6%
compounded monthly question markmonthly?The equivalent singlereplacement payment is
?$nothing.
?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)
Enter your answer in the answer box.
5.
the Continental Bank advertises capital savings at
7.4?%
compounded
semi-annually
while TD Canada Trust offers premium savings at
7.33?%
compounded
monthly.
Suppose you have
?$3000
to invest for two years.
?(a) Which deposit will earn more? interest?
?(b) What is the difference in the amount of? interest?
?(a) The
Continental Bank
TD Canada Trust
savings account will earn more interest.?(b) The differenceis
?$13.41.
?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)
Enter your answer in the answer box.

Answer & Explanation Solved by verified expert

4.1 Ratings (753 Votes)

Answer 1)

Maturity value (V) = $1700, Time = 30,Nov,2024 – 31,May,2022 = 548 days = 1.50 years

Rate= 3.1% (annual)

Proceeds on discounting, P = V / (1+r/n)^t*n

P = 1700 / ( 1+ 0.031/2)³

P = $ 1623.34

Answer 2)

	rate(annual)	8.30%
	Rate (monthly)	0.006916667
Date	Deposit	Time at end date	Time(year)	Amount
1/12/2008	$1,300	2859 days	7.833	$2,485.729
1/12/2010	$1,300	2129 days	5.833	$2,106.564
1/1/2012	$1,300	1733 days	4.748	$1,925.673

End date	1/10/2016		Total Amount	$6,517.967

Answer 4 ) replacement payment at 3rd year ,

Rate(annual)	6.60%
Rate(monthly)	0.55%
Payment date	amount	Time for replacemnt period(in months)	Amount
1	$863	24	984.4203754	863*(1+0.55%)^24
4.5	$811	-18	734.7566162	811*(1+0.55%)^-18
5	$1,491	-24	1307.097082	1491*(1+0.55%)^-24

		Amount	$3,026.274

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1. Find the proceeds of a promissory note with a maturity valueof?$1700due onNovember30,2024discounted at3.1?%compoundedsemi-annuallyonMay31?,2022.The proceeds are?$nothing.?(Round to the nearest cent as needed. Round all intermediatevalues to six decimal places as? needed.)Enter your answer in the answer box.2. Gabeopened an RRSP deposit account on December? 1, 2008, with adeposit of?$1300.He added?$1300onDecember?1, 2010, and?$1300onJanuaryJanuary?1, 2012. How much is in his account onOctober?1, 2016, if the deposit earns8.3?%p.a. compoundedmonthly??The amount in the account is?$nothing.?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)Enter your answer in the answer box.3.A loan of?$5989borrowed today is to be repaid in three equal installments dueintwoyears?,three?years, andfive?years, respectively. What is the size of the equal installmentsif money is worth2.3%compounded quarterly question markquarterly?The payments areeach?$nothing.?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)Enter your answer in the answer box.4.Scheduled payments of?$863?,?$811?,and?$1491are due inoneyear?,four-and-a-half?years, andfiveyears respectively. What is the equivalent single replacementpaymentthreethreeyears from now if interest is6.6%compounded monthly question markmonthly?The equivalent singlereplacement payment is?$nothing.?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)Enter your answer in the answer box.5.the Continental Bank advertises capital savings at7.4?%compoundedsemi-annuallywhile TD Canada Trust offers premium savings at7.33?%compoundedmonthly.Suppose you have?$3000to invest for two years.?(a) Which deposit will earn more? interest??(b) What is the difference in the amount of? interest??(a) TheContinental BankTD Canada Trustsavings account will earn more interest.?(b) The differenceis?$13.41.?(Round the final answer to the nearest cent as needed. Roundall intermediate values to six decimal places as? needed.)Enter your answer in the answer box.