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Chapter: 6 -Problem: 15 >> To settle a $570 invoice, Anna can pay $560 now or the full amount 60 days later.a. Which alternative should she choose if money can earn 10.75%?b. What rate would money have to earn for Anna to be indifferent between the two alternatives?
Answer Preview: a If she waits to pay the 570 in 60 days from now that o…

, Chapter: 1 -Problem: 4 >> The following fractions and mixed numbers have terminating decimal equivalent forms. Express their decimal and percent equivalent forms to five-figure accuracy.7/8
Answer Preview: 7 8…

, Chapter: 9 -Problem: 8 >> Lisa is offered a loan from a bank at 4.2% compounded monthly. A credit union offers similar terms, but at a rate of 4.4% compounded semiannually. Which loan should she accept? Present calculations that support your answer.
Answer Preview: Let lisa borrow of 100 from a bank for six month at 4 2 compou…

, Chapter: 3 -Problem: 11 >> The late 1970s and early 1980s were years of historically high rates of inflation in Canada. The CPI was at 35.1, 38.1, 41.8, 46.9, 52.2, and 56.5 at the beginning of 1978, 1979, 1980, 1981, 1982, and 1983, respectively. These numbers are quoted in terms of a base value of 100 in mid-2002. a. What amount was required at the beginning of 1983 in order to have the same purchas-ing power as $100 just
Answer Preview: a To maintain purchasing power the amount …

, Chapter: 1 -Problem: 37 >> Evaluate each of the following, accurate to the nearest cent. Transcribed Image Text: 2 $650(1 + 0.105 $650( 1+
Answer Preview: 650 1 0 …

, Chapter: 7 -Problem: 25 >> Calculate the maturity value of a 120-day, $1000 face value note dated November 30, 2017, and earning interest at 4.75%.
Answer Preview: Maturity value is the amount that t…

, Chapter: 6 -Problem: 16 >> Peter and Reesa can book their Horizon Holiday package at the early-booking price of $3900, or wait 4 months and pay the full price of $3995.a. Which option should they select if money can earn a 5.25% rate of return? In current dollars, how much do they save by selecting the preferred option?b. Which option should they select if money can earn a 9.75% rate of return? In current dollars, how much
Answer Preview: a Now price After 4 month price 3900 3995 At rate 5 25 Here comparing both Early booking is …

, Chapter: 1 -Problem: 19 >> Evaluate each of the following.(9 × 3 + 32 ÷ 22)3
Answer Preview: Given 9 x 3 32 2 2 3 To find to evaluate the given express…

, Chapter: 9 -Problem: 13 >> The price of Telus shares rose 26.68%, 13.61%, 12.15% and 1439% in the years 2011, 2012, 2013, and 2014, respectively. Then the share price fell by 8.95% in 2015.a. What was the overall five-year percent change in the price of Telus shares?b. If the share price at the end of 2015 was $38.26, what was the price at the beginning of 2011?
Answer Preview: Let V i represent the share price at the beginni…

, Chapter: 3 -Problem: 18 >> Express each of the following ratios in its lowest terms. Transcribed Image Text: 103:7:4
Answer Preview: I Given Ratio 10 1 2 7 4 1 5 II Required a Simplify the given ratio III Solution Step …

, Chapter: 2 -Problem: 35 >> Evaluate each of the following expressions for the given values of the variables. Calculate the result accurate to the nearest cent. Transcribed Image Text: (1+ i)" – 1] R for R = $550, i = 0.085, n = 3 i
Answer Preview: 1 1 1 i R …

, Chapter: 7 -Problem: 14 >> Calculate the missing values for the promissory notes described in problem. Transcribed Image Text: Issue date Face value ($) Term Interest rate (%) Maturity value ($) Nov. 5 4350 75 days 4445.28
Answer Preview: I=S-P = $4445 2…

, Chapter: 13 -Problem: 18 >> A mortgage contract for $245,000 written 10 years ago is just at the end of its second five-year term. The interest rates were 6% compounded semiannually for the first term and 5% compounded semiannually for the second term. If monthly payments throughout have been based on the original 25-year amortization, calculate the principal balance at the end of the second term.
Answer Preview: Initially Substitute into formu…

, Chapter: 1 -Problem: 24 >> Convert each of the following fractions and mixed numbers to its decimal equivalent and percent equivalent values, rounded to five-figure accuracy.7/6
Answer Preview: 7 6…

, Chapter: 9 -Problem: 25 >> The following table shows the rates of total return in successive gears from 2011 to 2015 for the Renaissance Global Health Care Fund and for the benchmark Toronto Stock Exchange S&P/TSX Composite Index. By how much did the mutual fund's overall percentage return exceed or fall short of the Index's growth? Transcribed Imag
Answer Preview: The value at the end of 2015 of an initial investment …

, Chapter: 3 -Problem: 6 >> Solve the following proportions for the unknown quantities. Maintain three-figure accuracy.1.56:h = 56.2:31.7
Answer Preview: 1 56 h 56 2 31 7 ie …

, Chapter: 1 -Problem: 36 >> Evaluate each of the following, accurate to the nearest cent. Transcribed Image Text: $10,000 1? 1- 0.10 x 365
Answer Preview: 10000 1 0 …

, Chapter: 7 -Problem: 17 >> Duncan Developments Ltd. obtained a $120,000 line of credit from its bank to subdivide a parcel of land it owned into four residential lots and to install water, sewer, and underground electrical services. Amounts advanced from time to time are payable on demand to its bank. Interest at prime plus 4% on the daily principal balance is charged to the developer's bank account on the 26th of each mont
Answer Preview: Number Interest Accrued Payment Principal Date of d…

, Chapter: 13 -Problem: 17 >> After two years of the first five-year term at 6.7% compounded semiannually, Dan and Laurel decide to take advantage of the privilege of increasing the payments on their $210,000 mortgage loan by 10%. The monthly payments were originally calculated for a 25-year amortization. a. How much will the amortization period be shortened?b. What will be the principal balance at the end of the five-year ter
Answer Preview: Given a Substitute into formula 10 2 and solve for PMT Monthly payment after 10 incre…

, Chapter: 1 -Problem: 18 >> Evaluate each of the following.5[19 + (52 - 16)2]2
Answer Preview: 5 19 5 2 16 2 …

, Chapter: 10 -Problem: 1 >> An annuity consists of payments of $100 at the end of every quarter for 5 years. What is the annuity's present value, using a discount rate of 10% compounded quarterly?
Answer Preview: Given PV i 5 1 25 PMT 100 n 4 …

, Chapter: 3 -Problem: 12 >> Express each of the following ratios in its lowest terms.0.091: 0.021: 0.042
Answer Preview: The given ratio is 0 091 0 021 0 042 We hav…

, Chapter: 2 -Problem: 28 >> Evaluate each of the following expressions to six-figure accuracy.(2/5)3
Answer Preview: 2 5 3 2 3 5 3 b…

, Chapter: 7 -Problem: 13 >> Calculate the missing values for the promissory notes described in problem. Transcribed Image Text: Issue date Face value ($) Term Interest rate (%) Maturity value ($) Jan. 22 6200 120 days 6388.04
Answer Preview: I=S-P = $6388 04 …

, Chapter: 1 -Problem: 20 >> Evaluate each of the following.180 – 2[(-3 × 23 + 128 ÷ 42) + 6(-3 + 7)]
Answer Preview: In order to evaluate we need to apply BODMAS rule where w…

, Chapter: 9 -Problem: 23 >> Consider the Province of Nova Scotia strip bond in Table 9.1.a. Present calculations to verify, to the nearest dollar, the bond's price on February 26, 2016, based on the quoted yield of 1.75% compounded semiannually.b. What would the bond's price be on September 1, 2018 if the yield remains the same? Table 9.1 Transcribed
Answer Preview: a b Number of compounding periods to maturity n 5 151 184 5 820652174 Number …

, Chapter: 3 -Problem: 10 >> Canada has had relatively low inflation rates since the 1990s. The CPI was at 115.1, 117.8, 120.7, 121.3, 123.1, and 124.3 at the beginning of 2010, 2011, 2012, 2013, 2014, and 2015, respectively. These numbers are quoted in terms of a base value of 100 in 2002.a. What amount was required at the beginning of 2015 in order to have the same purchasing power as $100 five years earlier, at the beginni
Answer Preview: a To maintain purchasing power the amount …

, Chapter: 1 -Problem: 35 >> Evaluate each of the following, accurate to the nearest cent. Transcribed Image Text: $3490 1+ 0.125 x. 365
Answer Preview: We need to evaluate 3490 1 0 125 91 365 To solve this we wil…

, Chapter: 7 -Problem: 7 >> An agreement stipulates payments of $4000, $2500, and $5000 in three, six, and nine months, respectively, from today. What is the highest price an investor will offer today to purchase the agreement if he requires a minimum rate of return of 6.25%?
Answer Preview: Maximum price = Sum of the pres…

, Chapter: 1 -Problem: 14 >> The following fractions and mixed numbers have repeating decimal equivalent forms. Express their decimal and percent equivalent forms in the repeating decimal notation. Show just the minimum number of decimal places needed to display the repeating digit or group of digits.-1 11/11
Answer Preview: 1 1…

, Chapter: 9 -Problem: 19 >> The Consumer Price Index (based on a value of 100 in 2002) rose from 78.4 in 1990 to 95.4 in 2000. What was the (equivalent) annual rate of inflation in the decade of the 1990s?
Answer Preview: To calculate the annual rate of inflation we need to know the …

, Chapter: 3 -Problem: 4 >> A basket of goods and services representative of the CPI cost $2750 when the CPI stood at 127.2.a. What did the basket of goods cost 10 years earlier, when the CPI was at 107.9?b. What was the overall percent inflation experienced by consumers for the entire 10-year period?
Answer Preview: a b Beginning cost Beginn…

, Chapter: 2 -Problem: 17 >> Janil is researching "pay as you go" cell phone plans for his mother, who does not want to lock into a fixed,- term contract and has no need for data or text plans. Plan A charges 20 cents per minute for local calls and 40 cents per minute for long-distance calls in Canada. Plan B charges a flat rate of 35 cents per minute for calls anywhere in Canada. Both plans can be cancelled at any time with
Answer Preview: Step 2 Plan A 20 cents minute for local calls and 40 cents minute for long distance calls …

, Chapter: 7 -Problem: 15 >> A conditional sale contract requires two payments three and six months after the date of the contract. F:aeh payment consists of $1900 principal phis interest at 10.5% on $1900 from the date of the contract. One month into the contract, what price would a finance company pay for the contract if it requires a 16% rate of return on its purchases?
Answer Preview: Price = Sum of present values of the payments (discou…

, Chapter: 1 -Problem: 16 >> Karim is paid a gross monthly salary of $2600 in his current job. He is considering taking a new sales position that would pay a gross salary of $1200 per month, plus a 4% commission on sales in excess of his monthly quota of $18,000. How much would Karim need to sell per month in the new job in order to match his monthly earnings in his current job?
Answer Preview: The commission in the new job would need to earn Kar…

, Chapter: 9 -Problem: 16 >> The population of Canada grew from 24,820,000 in 1981 to 35,851,800 in 2015. What was the overall compound annual rate of growth in our population during the period?
Answer Preview: Canadas population grew at the rate of j mi 1 1 08…

, Chapter: 2 -Problem: 6 >> Simplify each of the following and collect the like terms.6a - 3a - 2(2b - a)
Answer Preview: Simplify and c…

, Chapter: 2 -Problem: 30 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.The Edmonton Real Estate Board reports that the average selling price of homes this month in the greater Edmonton area was $348,535, a decrease of 1.8% from last month. Rounded to the nearest $100, what was the average selling price of a home last month?
Answer Preview: Given V f 348 535 c 1 8 Ro…

, Chapter: 7 -Problem: 6 >> Mr. Michaluk has a $50,000 personal (revolving) line of credit with the Canadian Imperial Bank of Commerce (UK). The loan is on a demand basis at a floating rate of prime plus 1.5%. On the 15th of each month, a payment equal to the greater of $100 or 3% of the combined principal and accrued interest is deducted from his chequing account. The principal balance after a payment on September 15 stood
Answer Preview: Number Interest Accrued Payment Principal Date of days rate Interest …

, Chapter: 1 -Problem: 16 >> Round each of the following to four-figure accuracy.11.3845
Answer Preview: Round the digit 11 3845 nearest to four significant figures …

, Chapter: 9 -Problem: 10 >> The maturity value of a $5000 four-year compound-interest GIC was $5839.72. What quarterly compounded rate of interest did it earn?
Answer Preview: The GIC earned j mi 4 0 975 3 90 compou…

, Chapter: 2 -Problem: 31 >> Evaluate each of the following expressions to six-figure accuracy.0.893-1/2
Answer Preview: 0 893 1 2 893 10…

, Chapter: 2 -Problem: 30 >> Evaluate each of the following expressions for the given values of the variables. In problem, maintain five-figure accuracy. In problem, calculate the result accurate to the nearest cent.S/(1 + i)n; for S = $850, i = 0.0075, n = 6
Answer Preview: S 850 1 …

, Chapter: 7 -Problem: 9 >> Over the past 35 years, the prevailing market yield or discount rate on 91-day T-bills has ranged from a low of 0.17% in February 2010 to a high of 20.82% in August 1981. (The period from 1979 to 1990 was a time of historically high inflation rates and interest rates.) How much more would you have paid for a $100,000 face value 91-day T-bill at the February 2010 discount rate than at the August 19
Answer Preview: You would have paid $99,957 63 $95,065 40 = $4892 …

, Chapter: 1 -Problem: 8 >> Evaluate each of the following.(5 + 3)2 - 32 ÷ 9 + 3
Answer Preview: Given equat…

, Chapter: 9 -Problem: 24 >> An investor's portfolio increased in value from $100,000 to $193,000 over a seven-year period in which the Consumer Price Index rose from 114.1 to 125.2. What was the compound annual real rate of return on the portfolio during the period?
Answer Preview: To simply maintain purchasing power A 100 00…

, Chapter: 3 -Problem: 11 >> Express each of the following ratios in its lowest terms.0.24:0.39:0.15
Answer Preview: Given ratio 0 24 0 39 0 15 …

, Chapter: 2 -Problem: 35 >> Evaluate each of the following expressions to six-figure accuracy.6?1.05
Answer Preview: 6 …

, Chapter: 8 -Problem: 2 >> What amount would have to be invested today for the future value to be $10,000 after 20 years if the rate of return isa. 4% compounded quarterly?b. 6% compounded quarterly?c. 8% compounded quarterly?
Answer Preview: Given: FV = $10,000; n = 4…

, Chapter: 1 -Problem: 3 >> Tim currently owes $37,500 to a private lender. The rate of interest on this debt is 8%. If he borrows an additional $20,000 at a rate of 7% from the same lender, what average rate of interest is Tim paying on his accumulated debt?
Answer Preview: The weighted average …

, Chapter: 9 -Problem: 15 >> Camille can obtain a residential mortgage loan from a bank at 4.75% compounded semiannually or from an independent mortgage broker at 4.68% compounded monthly. Which source should she pick if other terms and conditions of the loan are the same? Present calculations that support your answer.
Answer Preview: Camille should take the broker mortgage since its effective i…

, Chapter: 2 -Problem: 45 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.If the euro is worth 32% more than the Canadian dollar, how much less (in percentage terms) is the Canadian dollar worth than the euro?
Answer Preview: Given Euro is worth 32 more than the Canadian dollar Let us assume Canadian …

, Chapter: 2 -Problem: 26 >> Evaluate each of the following expressions to six-figure accuracy.84/3
Answer Preview: To evaluate 8 4 3 First we need to …

, Chapter: 7 -Problem: 10 >> Calculate the missing values for the promissory notes described in problem. Transcribed Image Text: Issue date Face value ($) Term Interest rate (%) Maturity value ($) Feb. 15 3300 60 days 6.75 ?
Answer Preview: Answer: Given Data . Issue date -> Face value Term = . . = Interest rute = 2 = 6 75%. Mat…

, Chapter: 1 -Problem: 6 >> During a recent math test, 37 students finished the test in forty-five minutes, 12 students finished in fifty minutes, and 18 students finished in fifty-five minutes. Rounded to the nearest 0.1 minutes, what was the average completion time for the test?
Answer Preview: We should weight each complet…

, Chapter: 9 -Problem: 8 >> A trust company pays 1.5% compounded semiannually on its three-year GIC. For you to prefer an annually compounded GIC of the same maturity, what value must its nominal interest rate exceed?
Answer Preview: Given J1 5 m 2 m 1 m m 1 1 …

, Chapter: 3 -Problem: 21 >> A steel company in Hamilton can purchase Alberta coal at C $85 per metric ton (1000 kg) or West Virginia coal at US$65 per ton (20001b)(1 kg = 2.205 lb). How much cheaper in C$ per metric ton is the less expensive source if US $0.785 = C$1.00?
Answer Preview: It is C 91 29 C 85 00 C 6 29 per metric tonne cheaper …

, Chapter: 2 -Problem: 29 >> Evaluate each of the following expressions to six-figure accuracy.5-3/4
Answer Preview: The hint is to simplify multi…

, Chapter: 7 -Problem: 9 >> An investment promises to pay a single future payment of $9000. At a market rate of return of 2.15%, the fair market value of this investment is $8872.82. How many months from today is the $9000 scheduled to be paid?
Answer Preview: The investment will earn interest of $9000 - …

, Chapter: 1 -Problem: 9 >> Evaluate each of the following.(54 - 36) ÷ ( 4 + 2)2
Answer Preview: 5436 …

, Chapter: 9 -Problem: 6 >> Philippe contributed $4300 to an RRSP eight years and six months ago. The money was invested in a Canadian Equity mutual fund. The investment is now worth $5537.82. Over the entire period, what monthly compounded nominal rate of return has the investment delivered?
Answer Preview: PV 4300 FV 5537 82 n 12 8 5 102 Yn n i FV PV …

, Chapter: 3 -Problem: 19 >> Solve the following proportions for the unknown quantities. Maintain three-figure accuracy.a:58: 132=38:27:b
Answer Preview: First take 2 terms each and solve …

, Chapter: 2 -Problem: 26 >> Evaluate each of the following expressions for the given values of the variables. In problem, maintain five-figure accuracy. In problem, calculate the result accurate to the nearest cent.N/1 – d for N = $89.10, d = 0.10
Answer Preview: We have given N 89 10 d 0 …

, Chapter: 7 -Problem: 1 >> Sarah's Canada Student Loans totalled $9400 by the time she graduated from Georgian College in May. She arranged to capitalize the interest on November 30 and to begin monthly payments of $135 on December 31. Sarah elected the floating-rate-interest option (prime plus 2.5%). The prime rate stood at 3.75% on June 1, dropped to 3.5% effective September 3, and then increased by 0.25% on January 17. P
Answer Preview: Number of days from June 1 to September 3 = 246 152 = 94 …

, Chapter: 1 -Problem: 7 >> The following fractions and mixed numbers have terminating decimal equivalent forms. Express their decimal and percent equivalent forms to five-figure accuracy.-35/25
Answer Preview: 35 …

, Chapter: 10 -Problem: 4 >> Connor is exactly 27 years old today. Beginning today, he will deposit $2000 at the start of each year into a savings account that earns 4.75% compounded annually. How much will Connor have in his account on his 65th birthday? Note that no deposit is made on his 65th birthday.
Answer Preview: PMT 2000 n FV due 2000 1 38 38 i …

, Chapter: 3 -Problem: 26 >> Solve the following problems using proportions.The Ministry of Education reported that the average school board in the province has 31,900 students in kindergarten-to-grade-12 programs, an annual budget of $288 million, and 1916 full-lime-equivalent teachers. The Northern School District (NSD), with an annual bud-get of $80.1 million and 545 teachers, serves 9350 students. What adjustments would h
Answer Preview: Let S B and T represent the number of students the an…

, Chapter: 2 -Problem: 19 >> Simplify the following.(y3)3
Answer Preview: y 3…

, Chapter: 10 -Problem: 15 >> Marika is shopping for a new cell phone and plan. She can get the phone she wants for an upfront payment of $299 if she signs up for a two-year plan with a major carrier. That plan will cost $75 at the end of every month for the duration of the two-year contract. Alternately, Marika can purchase the phone today for $639.99 and obtain service from a "no contract" service provider for $40 at the end
Answer Preview: i 9 12 0 75 The two year service contract has PMT 75 and n 24 The current eco…

, Chapter: 7 -Problem: 5 >> On its issue date, an investor paid $99,760 for a $100,000 face value, 98-day Government of Canada T-bill. What was the investor's required rate of return?
Answer Preview: Effectively, the interest earned by the buy…

, Chapter: 1 -Problem: 6 >> Evaluate each of the following.(18 ÷ 3 + 6) x 2
Answer Preview: 183 …

, Chapter: 9 -Problem: 11 >> The home the Bensons purchased 13 years ago for $115,000 is now appraised at $385,000. What has been the annual rate of appreciation of the value of their home during the 13-year period?
Answer Preview: Given PV 115 000 FV 385 000 n 13 The compou…

, Chapter: 3 -Problem: 24 >> Solve the following problems using proportions.A punch recipe calls for cranberry juice, ginger ale, and pineapple juice to be mixed in the ratio 6:2.5:1. How much cranberry juice and pineapple juice should be mixed with a 2-litre bottle of ginger ale?
Answer Preview: Given The ratio of cranberry juice ginger ale and pineapple jui…

, Chapter: 2 -Problem: 25 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.On July 1, 2015, Canada's population was 35,851,800. This represented a 4.39% increase over a 4-year period. Rounded to the nearest 1000, what was Canada's population on July 1, 2011?
Answer Preview: Let the population figure on July 1 …

, Chapter: 10 -Problem: 18 >> Nina, just turned 30, has already accumulated $10,000 in her Registered Retirement Savings Plan. She intends to continue to make deposits of $150 at the end of every month until age 62. She plans to retire then and cease further contributions. The RRSP will be allowed to continue to accumulate interest until she reaches age 65. If the RRSP earns 4.2% com-pounded monthly for the entire duration, wh
Answer Preview: At age 62 when she stops making contributions Ninas accum…

, Chapter: 7 -Problem: 7 >> On a $10,000 principal investment, a bank offered interest rates of 0.65% on 270-w-364-day GICs and 0.6% on 180-to-269-day GICs. How much more will an investor earn from a 364-day GIC than from two consecutive 182-day GICs? (Assume that the interest rate on 180-to-269-day GICs will be the same on the renewal date as it is today. Remember that both the principal and the interest from the first 182-
Answer Preview: Therefore, the investor will earn $10,064 82 $10,059 93 = $4 89 mor…

, Chapter: 1 -Problem: 5 >> Allison's regular hourly rate of pay is $13.70. She is paid time and a half for all work on weekends and for any time over 7.5 hours on weekdays. Calculate her gross earnings for a week in which she works 4.5, 0, 7.5, 8.5, 6, 6, and 9 hours on Saturday to Friday, respectively.
Answer Preview: Regular hours worked 7 5 …

, Chapter: 9 -Problem: 23 >> According to the Canadian Real Estate Association, the average selling price of Canadian homes rose from $67,000 in 1980 to $470,000 in 2016. What has been the overall compound annual appreciation of home prices?
Answer Preview: The equivalent rate of return was 8 08 comp…

, Chapter: 3 -Problem: 15 >> A provincial government allocates 25% of its budget to education, 39% to health care, and 11% to social services. If the dollar amount budgeted for education is $22.6 billion, how much is budgeted for health care and for social services? Round to the nearest $0.01 billion.
Answer Preview: If 25 of the budget is allocated to education and the dollar amount budgeted for …

, Chapter: 2 -Problem: 22 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.Nykita achieved jewellery sales of $18,400 in her home-based business last year. She is projecting a 12% increase for next year due to an in1proved marketing can1paign. What level of sales is Nykita projecting for next year?
Answer Preview: Last year sales 18 400 Projected incre…

, Chapter: 10 -Problem: 4 >> An annuity consists of payments of $400 at the end of every calendar quarter for 11 years. If the annuity earns 3.5% compounded annually, calculate the annuity'sa. Future valueb. Present value
Answer Preview: a b i 3 5 3 5 n 4 11 44 …

, Chapter: 8 -Problem: 3 >> What amount invested today would grow to $10,000 after 25 gears if the investment earnsa. 4% compounded annually?b. 4% compounded semiannually?c. 4% compounded quarterly?d. 4% compounded monthly?
Answer Preview: Given: a. b. c. d. i = 4…

, Chapter: 1 -Problem: 25 >> In August, Canada's exports to the United States were $33.7 billion, which were 97% of July's exports to the United States. Rounded to the nearest $0.1 billion, what was the value of Canada's exports to the United States in July?
Answer Preview: In August Canada s exports to the United States were 33 7 billi…

, Chapter: 9 -Problem: 18 >> A $4000 loan at 4.8% compounded monthly was settled by a single payment of $5000 including accrued interest. Rounded to the nearest day, how long after the initial loan was the $5000 payment made? For the purpose of determining the number of days in a partial month, assume that a full month has 30 days.
Answer Preview: The number of months required for 4000 borrowed at 4 8 compounded monthly to grow t…

, Chapter: 2 -Problem: 7 >> A plumber charges a flat $100 for a home service call plus $20 per 15 minutes of labour. Write an equation for calculating the total charges, C, in terms of the hours of labour, H. If you were to plot a graph of C vs. H, what would be the slope and C-intercept of the line?
Answer Preview: How service change of plumber is 100 …

, Chapter: 2 -Problem: 40 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.Sears Canada reported that its annual sales revenue fell 14.2% in 2014 as compared to 2013. What percentage were 2013 sales of 2014 sales?
Answer Preview: Given 2014 sales revenues were 14 2 less than 2013 sa…

, Chapter: 10 -Problem: 6 >> How much will an investor have at the end of 20 years if he deposits $500 at the end of every month for the next 20 years? Assume money earns 2.5% compounded semiannually.
Answer Preview: PMT 500 n 12 20 240 i 35 1 75 Compoundings per ye…

, Chapter: 7 -Problem: 12 >> Ruxandra's Canada Student Loans totalled $7200 by the time she finished Conestoga College in April. The accrued interest at prime plus 2.5% for the grace period was converted to principal on October 31. She chose the floating-interest-rate option and began monthly payments of $120 on November 30. The prime rate of interest was 3.5% on May 1, 3.25% effective July 9, and 4% effective December 13. Pr
Answer Preview: Number of days from May 1 to July 9 = 190 121 = 69 Numb…

, Chapter: 1 -Problem: 28 >> Convert each of the following fractions and mixed numbers to its decimal equivalent and percent equivalent values, rounded to five-figure accuracy.3 12/19
Answer Preview: 3 12 19 …

, Chapter: 9 -Problem: 6 >> To be equivalent to 7% compounded quarterly, what must be the nominal rate witha. Annual compounding?b. Semiannual compounding?c. Monthly compounding?
Answer Preview: Given j 1 7 m 1 4 a b c m 1 …

, Chapter: 1 -Problem: 39 >> Evaluate each of the following, accurate to the nearest cent. Transcribed Image Text: $550 (1 + ")* 0.1154
Answer Preview: 550 1…

, Chapter: 10 -Problem: 20 >> Michael purchased a computer today during a "no money down" event. He will make payments of $226.51 at the end of each month for the next 12 months. These payments include interest at a rate of 16.5% compounded monthly. What was the original selling price of the computer?
Answer Preview: The original purchase price is the present value of the 12 …

, Chapter: 7 -Problem: 10 >> Twenty-seven days ago, The Hatfield Corporation issued $300,000 face value 90-day commercial paper. How much will a investor pay for the commercial paper today if the required market rate of return is 2.15%?
Answer Preview: Time remaining unti…

, Chapter: 1 -Problem: 22 >> Evaluate each of the following.34 – 7 × 2 – 6 × 4/5
Answer Preview: 3 4 7 2 …

, Chapter: 9 -Problem: 9 >> A $1000 five-year compound-interest GIC matured at $1041.25. What semiannually compounded rate of interest did it earn?
Answer Preview: The GIC earned j mi 2 0 405 0 81 compoun…

, Chapter: 2 -Problem: 15 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.$100 is 10% less than what amow1t?
Answer Preview: Given to find 100 is …

, Chapter: 10 -Problem: 5 >> Sabina plans to invest $175 at the end of every month for the next 81 years. What will her investment be worth at the end of the 81-year period if she earns 4.2% compounded monthly?
Answer Preview: PMT 175 n 12 81 99 i 4 2 0 35 …

, Chapter: 7 -Problem: 2 >> Calculate the price on its issue date of $100,000 face value, 90-day commercial paper issued by GE Capital Canada if the prevailing market rate of return is 0.932%.
Answer Preview: Answer: Market Rate of Return = 3 932% Face Value = $ 100,000 Time Perio…

, Chapter: 1 -Problem: 6 >> The following fractions and mixed numbers have terminating decimal equivalent forms. Express their decimal and percent equivalent forms to five-figure accuracy.-9/16
Answer Preview: 9 1…

, Chapter: 9 -Problem: 9 >> Rounded to the nearest month, how long will it take a town's population to grow from 32,500 to 40,000 if the annual growth rate is 3%?
Answer Preview: Each compounding period is 1 year The partial period is 0 0246 x …

, Chapter: 2 -Problem: 13 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.$754.30 is what percent less than $759?
Answer Preview: Percentage Definition Percentage is a value that represents the proportion of one number to a…

, Chapter: 10 -Problem: 16 >> You want to buy a new laptop computer and have obtained pricing information from two major retailer& Retailer A is offering a "no money down no interest" event You would pay $162.50 at the end of each month for the next 12 months. To purchase the same laptop from Retailer B, you will pay $500 today, and an additional $72.50 at the end of each month for the next 18 months. Which alternative is econ
Answer Preview: Given i 0 5 In todays dollars the cost of the laptop f…

, Chapter: 8 -Problem: 3 >> Determine the periodic interest rate for a nominal interest rate of 3.2% compoundeda. Annually.b. Semiannually.c. Monthly.
Answer Preview: a. b. c. …

, Chapter: 1 -Problem: 17 >> Calculate dollar amounts accurate to the cent and percent amounts to three-figure accuracy.$10 is 0.5% of what amount?
Answer Preview: 10 is 0 5 of what amount let the re…

, Chapter: 9 -Problem: 20 >> Columbia Trust wants its annually, semiannually, and monthly compounded five-year GICs all to have an effective interest rate of 2.75%. What nominal annual rates should it quote for the three compounding options?
Answer Preview: For the annually compounded rate j i f 2 75 compounded annua…

, Chapter: 2 -Problem: 19 >> Perform the multiplication or division indicated in each of the following expressions and collect the like terms. Transcribed Image Text: 12x – 24x2 + 36x 48x
Answer Preview: So Given Equation is 12X 3 24X 2 36X 48X Now taking X common in above equa…

, Chapter: 10 -Problem: 5 >> A retiree will receive retirement pension payments of $1000 at the end of every month for the next 12 years. What is the current economic value of the retiree's pension if money is wortha. 6% compounded monthly?b. 6% compounded quarterly?
Answer Preview: a b PMT 1000 n 12 12 144 1 0 5 …

, Chapter: 1 -Problem: 18 >> Round each of the following to four-figure accuracy.0.5545454
Answer Preview: Rounding off 0 5545454 we will get 0 5545 To round off to a 4 …

, Chapter: 9 -Problem: 18 >> The Consumer Price Index (based on a value of 100 in 2002) rose from 44.0 in 1980 to 78.4 in 1990. What was the (equivalent) annual rate of inflation in the decade of the 1980s?
Answer Preview: The average rate of inflation during the …

, Chapter: 8 -Problem: 30 >> A four-year $8000 promissory note bearing interest at 6.6% compounded monthly was discounted 21 months after issue to yield 4.8% compounded quarterly. What were the proceeds from the sale of the note?
Answer Preview: Proceeds Present value of the maturity value Fo…

, Chapter: 2 -Problem: 17 >> Simplify each of the following.(1 + i) × (1 + i)n
Answer Preview: 1 i 1 i n 1 i …

, Chapter: 11 -Problem: 4 >> Maya will make end-of quarter payments of $642.73 to repay a $10,000 loan. How many loan payments will he make in total if he is being charged interest at 6% compounded quarterly?
Answer Preview: Given Thaya will make 17 full payments of 642 73 and one s…

, Chapter: 1 -Problem: 25 >> Evaluate each of the following. In problem, evaluate the answers accurate to the cent.$100(1 + 0.06 × 45/365)
Answer Preview: We need to evaluate 100 1 0 06 45 365 To solve this we …

, Chapter: 10 -Problem: 3 >> Aaron has been contributing $2000 at the end of every half-year for the past four years to a savings plan that earns 6% compounded semiannually. What amount will he have in three years from now if he continues with the plan?
Answer Preview: Given PMT 2000 n 2 7 14 1 3 …

, Chapter: 8 -Problem: 12 >> How much more will an investment of $10,000 earning 2% compounded annually be worth after 25 years than after 20 years? Calculate the difference in dollars and as a percentage of the smaller maturity value.
Answer Preview: The difference is 7 205 19 26 658 36 x 100 27 0…

, Chapter: 2 -Problem: 14 >> Simplify each of the following.b10 ÷ b6
Answer Preview: b 1…

, Chapter: 10 -Problem: 17 >> You have decided that you can afford to save $100 at the end of every month. You predict that your investments will earn 4.8% compounded monthly.a. How much will you have when you retire at age 65 if you begin your end-of-month savings plan at age 26?b. How much will you have when you retire at age 65 if you begin your end-of-month savings plan at age 30?c. By delaying the savings program by 5 yea
Answer Preview: Given PMT 100 i 4 8 12 0 4 a b c By beginning the savings program at age 25 …

, Chapter: 1 -Problem: 25 >> Convert each of the following fractions and mixed numbers to its decimal equivalent and percent equivalent values, rounded to five-figure accuracy.1/60
Answer Preview: To find the decimal numbe…

, Chapter: 9 -Problem: 29 >> The Lipper Fund Awards recognized mutual funds that have excelled in delivering strong performance. The Fidelity Canadian Growth Company Series B (managed by Pyramis Global Advisors) won a Lipper Award in 2015 for its five-year performance record. As of December 31, 2014, what three year and five-year compound annual returns did the fund report if its annual returns in successive years from 2010 t
Answer Preview: Suppose the amount initially invested was 100 The future value 2 years …

, Chapter: 8 -Problem: 8 >> Stan purchased a $15,000 compound-interest Series S129 Canada Savings Bond on December 1, 2011. The interest rate in each year was 0.5%. What total interest did Stan receive when he redeemed the CSB on November 17, 2016?
Answer Preview: The redemption value of the CSB on Decembe…

, Chapter: 2 -Problem: 34 >> Simplify each of the following and collect like terms. In problem, maintain five-figure accuracy. Transcribed Image Text: 2r 1.045 2.016x 3 +
Answer Preview: 2x 2016x 3…

, Chapter: 11 -Problem: 2 >> If $400,000 accumulated in an RRSP is used to purchase an annuity earning 3.9% compounded monthly and paying $3750 at the end of each month, what will be the term of the annuity?
Answer Preview: The purchase price of the annuity equals the present value of the payments …

, Chapter: 1 -Problem: 17 >> Evaluate each of the following.[(20 + 8 × 5) – 7 × (-3)] ÷ 9
Answer Preview: Given 20 8 x 5 7 x 3 9 To find to evaluate th…

, Chapter: 10 -Problem: 18 >> Sylvia and Maclean are exactly the same age. From age 30 to age 60, Sylvia invested $3000 at the end of every six months. Maclean invested $6000 at the end of every six months from age 45 to age 60. How much does each investor have at age 60 if they each earn 5% compounded semiannually?
Answer Preview: Each investors contributions form an ordinary simple …

, Chapter: 8 -Problem: 19 >> Consider a $5000-face-value Hydro Quebec strip bond from the issue in Table 8.3 that matures on August 26, 2020. If the yield does not change as years go by, what is the bond's value ona. August 26, 2017?b. August 26, 2018?c. August 26, 2019? Table 8.3 Transcribed Image Text: Issuer Maturity date Pr
Answer Preview: a On August 26 2017 three years remain until maturity b On August 26 2018 two yea…

, Chapter: 2 -Problem: 31 >> Simplify each of the following and collect like terms. In problem, maintain five-figure accuracy. Transcribed Image Text: 2x +9 4 1.2(x – 1)
Answer Preview: 2x 4 9 1 …

, Chapter: 11 -Problem: 7 >> An endowment fund is set up with a donation of $100,000. If it earns 3% compounded monthly, for how long will it sustain end-of-month withdrawals of $1000? (Include the final, smaller withdrawal.)
Answer Preview: Given The annuity consists of 115 monthly payments of 1000 and a final …

, Chapter: 1 -Problem: 22 >> A provincial minister of education recently annow1ced that his government's forecasted expenditure of $31.8 billion on education next year represents 25.04% of the provincial budget. Row1ded to the nearest million dollars, what is the province's total budget for the next year?
Answer Preview: Given Rate 25 04 and Portion 31 8 billion R…

, Chapter: 9 -Problem: 23 >> Terry was supposed to pay $800 to Becky on March 1. At a later date, Terry paid Becky an equivalent payment in the amount of $895.67. If they provided for a time value of money of 8% compounded monthly, on what date did Terry make the payment?
Answer Preview: Terry made the payment 17 months after March 1 …

, Chapter: 8 -Problem: 26 >> How much more interest would Aman earn on an investment of $150,000 for ten years if he is able to negotiate a rate of 6% compounded monthly instead of the advertised rate of 5.4% compounded monthly?
Answer Preview: At 6 compounded monthly At 5 4 compounded mont…

, Chapter: 2 -Problem: 17 >> Calculate the missing value for Problems 1 through 8.How much is $900 after a decrease of 90%? Transcribed Image Text: Problem 1. Ni 2. 3. 4. 5. 6. 7. 8. Initial value $95 135 kg 0.11 0.095 $134.39 112 g ? 2. Final value $100 35 kg 0.13 0.085 ? ? $75 $75 Percent change (%) ? ? ? ? -12 112 200 -50
Answer Preview: 900 90 1…

, Chapter: 10 -Problem: 19 >> Isaac wishes to purchase a 25-year annuity providing payments of $1000 at the end of each month for the first 15 years and $1500 at the end of each month for the remaining 10 years. If he requires a minimum rate of return of 3.6% compounded monthly, what is the maximum price Isaac will be willing to pay for the annuity?
Answer Preview: Given Term 25 years j 3 6 compounded monthly PMT 1000 month for the first 15 years a…

, Chapter: 1 -Problem: 14 >> Evaluate each of the following.15(37 - 32)
Answer Preview: 15 37 3 2 15 37 9 We have 3 …

, Chapter: 9 -Problem: 20 >> The Consumer Price Index (based on a value of 100 in 2002) rose from 116.5 in 2010 to 126.6 in 2015. What was the (equivalent) annual rate of inflation in the five years from 2010 to 2015?
Answer Preview: The annual rate of inflation during the 10 …

, Chapter: 8 -Problem: 33 >> A $6000 loan at 6% compounded quarterly is to be settled by two payments. The first payment is due after nine months and the second payment, half the amount of the first payment, is due after 1 1/2 years. Determine the size of each payment.
Answer Preview: Let x represent the size of the first paymen…

, Chapter: 2 -Problem: 22 >> Evaluate each of the following expressions for the given values of the variables. 15g - 9h + 3; for g = 14, h = 15
Answer Preview: Given value is …

, Chapter: 11 -Problem: 5 >> What nominal rate of interest compounded semiannually would allow deposits of $500 at the end of every six months for the next 10 years to grow to be worth $13,685?
Answer Preview: Given PMT 500 n 12 25 300 a b For …

, Chapter: 1 -Problem: 13 >> The following fractions and mixed numbers have repeating decimal equivalent forms. Express their decimal and percent equivalent forms in the repeating decimal notation. Show just the minimum number of decimal places needed to display the repeating digit or group of digits.-8/3
Answer Preview: 8 …

, Chapter: 10 -Problem: 3 >> An ordinary general annuity earns a nominal rate of 5% compounded semiannually. Rounded to the nearest 0.001%, what is the corresponding periodic rate (9 if the annuity's payments are made monthly?
Answer Preview: Number of compoundings pe…

, Chapter: 8 -Problem: 20 >> A bond pays $1000 interest at the end of every year for the next 30 years. What is the current economic value of each of the 15th and 30th payments if we discount the payments ata. 4% compounded semiannually?b. 8% compounded semiannually?
Answer Preview: a For the 15th payment i 4 2 2 and n 2 15 30 Economic value …

, Chapter: 2 -Problem: 32 >> Evaluate each of the following expressions to six-figure accuracy.(1.0085)5 (1.0085)3
Answer Preview: Solve the expression 1 0085 5 1 0085 3 Apply the …

, Chapter: 11 -Problem: 14 >> If $100,000 will purchase a 20-year annuity paging $632.65 at each month's end, what monthly compounded nominal rate and effective rate of interest are earned by the funds?
Answer Preview: The interest rate earned is the discount rate that makes the purchase price of the annuity e…

, Chapter: 1 -Problem: 5 >> The following fractions and mixed numbers have terminating decimal equivalent forms. Express their decimal and percent equivalent forms to five-figure accuracy.47/20
Answer Preview: 47 …

, Chapter: 10 -Problem: 24 >> Calculate the future value of an ordinary annuity consisting of monthly payments of $300 for five years. The rate of return was 3% compounded monthly for the first two years, and will be 4.5% compounded monthly for the last three years.
Answer Preview: For the first 2 years PMT 300 n 2 12 24 i 3 12 0 25 For the subsequent …

, Chapter: 8 -Problem: 13 >> The BMO Bank of Montreal advertised rates of 1.2%, 1.35%, 1.5%, 1.75%, and 2.25% for the five successive years of its five-year compound-interest RateRiser Plus GIC. At the same time, the bank was offering fixed-rate five-year compound-interest GICs yielding 1.25% compounded annually. What total interest would be earned during the five-year term on a $5000 investment in each type of GIC?
Answer Preview: Maturity value of the compound interest RateRiser Plus G…

, Chapter: 2 -Problem: 10 >> Calculate the missing value for Problems 1 through 8.$100 is vhat percent Jess than $110? Transcribed Image Text: Problem 1. Ni 2. 3. 4. 5. 6. 7. 8. Initial value $95 135 kg 0.11 0.095 $134.39 112 g ? 2. Final value $100 35 kg 0.13 0.085 ? ? $75 $75 Percent change (%) ? ? ? ? -12 112 200 -50
Answer Preview: Percentage Definition Percentage is a value that represents the proportion of …

, Chapter: 11 -Problem: 6 >> The interest rate on a $100,000 loan is 6% compounded monthly. How much longer will it take to pay off the loan with end-of month payments of $1000 than with end-of-month payments of $1050?
Answer Preview: The original loan equals the present value of all payments That is only 130 p…

, Chapter: 1 -Problem: 12 >> The following fractions and mixed numbers have repeating decimal equivalent forms. Express their decimal and percent equivalent forms in the repeating decimal notation. Show just the minimum number of decimal places needed to display the repeating digit or group of digits.5/6
Answer Preview: 5 …

, Chapter: 9 -Problem: 25 >> To the nearest day, how long will it take a $20,000 investment to grow to $22,000 (including accrued interest) if it earns 3% compounded quarterly? Assume that a quarter-year has 91 days.
Answer Preview: The number of quarter years for 20 000 invested at 3 compounded quarterly to grow to 22 00…

, Chapter: 9 -Problem: 28 >> A trust company pays 1.375% compounded annually on its five-year GICs. What semiannually compounded interest rate would produce the same maturity value?
Answer Preview: Given 1 375 Hence j mi1 1 1 375 1 375 compounded ann…

, Chapter: 2 -Problem: 9 >> Calculate dollar amounts accurate to the cent, and percent amounts accurate to the nearest 0.01%.$100 is what percent more than $90?
Answer Preview: Definition Percentage is a value that represents the proportion of one number to another numbe…

, Chapter: 10 -Problem: 20 >> Marika has already accumulated $18,000 in her RRSP. If she contributes $2000 at the end of every six months for the next 10 years, and $300 at the end of each month for the subsequent five years, what amount will she have in her plan at the end of the 15 years? Assume that her plan will earn 3% compounded semiannually for the first 10 years, and 3% compounded monthly for the subsequent 5 years.
Answer Preview: After 10 years Marika s RRSP will be worth After a f…

, Chapter: 1 -Problem: 11 >> The following fractions and mixed numbers have terminating decimal equivalent forms. Express their decimal and percent equivalent forms to five-figure accuracy..12 5/8
Answer Preview: 12 5…

, Chapter: 9 -Problem: 29 >> Assume that the Royal Bank shares in Table 9.3 will pay a $3.50 per share dividend in 2016. What would the share price have needed to be at the end of 2016 for a total rate of return in 2016 of 10%? Table 9.3 Transcribed Image Text: Share price ($) at the end of: Dividends ($) paid in: Company name
Answer Preview: Given V i 58 20 Income 3 50 Rate of total return 10 Income 3 50 58 2…

, Chapter: 8 -Problem: 32 >> A $15,000 loan at 5.5% compounded semiannually is advanced today. Two payments of $4000 are to be made 1 year and 3 years from now. The balance is to be paid in 5 years. What will the third payment be?
Answer Preview: Let x represent the final loan payment Th…

, Chapter: 2 -Problem: 27 >> Evaluate each of the following expressions to six-figure accuracy.-272/3
Answer Preview: Simplifying fir…

, Chapter: 10 -Problem: 7 >> You have obtained a personal loan to be repaid by a series of seven equal payments. The payments will be made at the end of every quarter. Draw a time diagram for this annuity. On the diagram, clearly label the date the loan was advanced, the first payment interval, the start of the annuity's term, each loan payment, the end of the annuity's term, and the total term of the annuity.
Answer Preview: First payment interval 3 mths Loan Adv…

, Chapter: 1 -Problem: 22 >> Round each of the following to four-figure accuracy.40.09515
Answer Preview: To round off 40 09515 to a 4 digit decimal first write the 3 …

, Chapter: 9 -Problem: 11 >> Three years ago Mikhail invested $7000 in a three-year compound-interest GIC. He has just received its maturity value of $7321.99. What was the monthly compounded rate of interest on the GIC?
Answer Preview: The GIC earned j mi 12 0 1250 1 50 compo…

, Chapter: 8 -Problem: 9 >> Henri has decided to purchase a $25,000 car. He can either liquidate some of his investments and pay cash, or accept the dealer's proposal that Henri pay $5000 down and $8000 at the end of each of the next three years.a. Which choice should Henri make if he can earn 3% compounded semiannually on his investments? In current dollars, what is the economic advantage of the preferred alternative?b. Whi
Answer Preview: a The cash price should be compared to the present value of the instal…

, Chapter: 2 -Problem: 27 >> Evaluate each of the following expressions for the given values of the variables. In problem, maintain five-figure accuracy. In problem, calculate the result accurate to the nearest cent.P(1 + rt); for N = $770, r = 0.013, t = 223/365
Answer Preview: 223 P 1 r…

, Chapter: 11 -Problem: 2 >> What beginning-of-month withdrawals can a $400,000 RRIF (Registered Retirement Income Fund) sustain for 20 years if the investments within the RRIF earn 3.6% compounded monthly?
Answer Preview: Given PV due 400 000 n 12 20 240 i 36 0 3 …

, Chapter: 1 -Problem: 29 >> Evaluate each of the following. Transcribed Image Text: 28 – 2(3 + 2° – 2) (3x 62 + 3 4
Answer Preview: 28 2 3 2 2 6 9 2…

, Chapter: 9 -Problem: 23 >> Victor cannot find the original record of his purchase four years ago of units of the Imperial Global Equity Income Pool Fund. The current statement from the fund shows that the total current value of the units is $47,567. From a mutual fund database, Victor found that the fund's rates of return for Years 1 to 4 have been -0.5%, 13.4%, 30.7%, and 12.5%, respectively.a. What was Victor's original i
Answer Preview: Given a b The dollar amount of the increase in …

, Chapter: 8 -Problem: 22 >> Teresa borrowed $8500 at an interest rate of 8% compounded quarterly. Two years after the loan was advanced she made a payment of $3000. Five years after the loan was advanced she made a payment of $2000. What final payment made 8 years after the loan was advanced will extinguish the debt?
Answer Preview: For the first 2 years PV 8500 i 8 4 2 0 n 4 2 8 Amount owed …

, Chapter: 2 -Problem: 19 >> A homeowner pays a flat "customer charge" of $28 per month for municipal water services, plus an additional $2.75 per cubic metre of water consumed. Write an equation for calculating the total water bill, B, for a month in terms of water consumption, C. If you were to plot a graph of B vs. C, what would be the slope and B-intercept of the line?
Answer Preview: The homeowner pays 28 per month plus 2 …

, Chapter: 10 -Problem: 19 >> You have received two offers on the used car you wish to sell. Mr. Lindberg is offering $8500 cash, and Rosie Senario's offer is five semiannual payments of $1900, including a payment on the purchase date. Which offer has the greater economic value at a discount rate of 5% compounded semiannually? What is the economic advantage (in current dollars) of the preferred alternative?
Answer Preview: The current economic value of Rosies offer is the present value of her pa…

, Chapter: 1 -Problem: 5 >> Calculate dollar amounts accurate to the cent and percent amounts to three-figure accuracy.$134 is what percent of $67?
Answer Preview: Rate P…

, Chapter: 10 -Problem: 4 >> A contract requires end-of-month payments of $175 for the next 81 gears. How much would an investor pay to purchase this contract if she requires a rate of return of 3% compounded monthly?
Answer Preview: Given PV i 3 0 25 PMT 175 n 12 …

, Chapter: 8 -Problem: 28 >> In 2013 the number of workers in the forest industry was forecast to decline by 3% per year, reaching 205,000 in 2023. How many were employed in the industry in 2013?
Answer Preview: Let number of people employed in 2013 be P Rate of decline 3 T…

, Chapter: 2 -Problem: 21 >> Solve the following equations. The solutions should be accurate to the cent. Transcribed Image Text: + 2x(1.1) = $1000 %3D 1.12
Answer Preview: X 2x 1 1 100…

, Chapter: 11 -Problem: 4 >> How much would you need to deposit at the end of every month to reach your goal of having $5000 in two years from now? Assume your funds earn 6% compounded monthly.
Answer Preview: The payments represent an ordinary simple …

, Chapter: 1 -Problem: 24 >> Evaluate each of the following. In problem, evaluate the answers accurate to the cent. Transcribed Image Text: (1+ 0.08)- (1 + 0.02)'] 0.08 – 0.02 $2000
Answer Preview: Solve the expression 2000 1 0 08 4 1 0 2 4 0 08 0 …

, Chapter: 9 -Problem: 26 >> When discounted to yield 71.98% compounded monthly, a $2600 three-year promissory note bearing interest at 9.25% compounded annually was priced at $3110.41. How many months after the issue date did the discounting take place?
Answer Preview: The number of compounding periods between the discount da…

, Chapter: 2 -Problem: 1 >> Simplify each of the following and collect the like terms. a. 2(7x - 3y) - 3(2x - 3y) b. 15x-(4 - 10x+ 12)
Answer Preview: Given a 2 7x 3y 3 2x 3y 14x 6y 6x 9y 14x 6y 6x 9y …

, Chapter: 9 -Problem: 3 >> An initial $1800 investment was worth $2120.31 after two years and nine months. What quarterly compounded nominal rate of return did the investment earn?
Answer Preview: PV 1800 FV 2120 31 n 4 2 11 Yn FV PV 1 21…

, Chapter: 2 -Problem: 33 >> Evaluate each of the following expressions to six-figure accuracy.(1.005)3 (1.005)-6
Answer Preview: Solve the expression 1 005 3 1 005 6 Apply exponent rul…

, Chapter: 10 -Problem: 15 >> On the day their grandson Jeff was born, Mr. and Mrs. Zolob began an investment plan to help pay for his education. The grandparents contributed $50 at the start of every month, beginning on the day of Jeff's birth and continuing up to his 19th birthday. (Note that no contribution was made on his 19th birthday.) The investment earned 6% compounded quarterly. How much was the investment worth when
Answer Preview: The payments form a general annuity due having PMT …

, Chapter: 1 -Problem: 21 >> Round each of the following to four-figure accuracy.0.030405
Answer Preview: To round off 0 030405 to a 4 digit decimal first write the …

, Chapter: 9 -Problem: 11 >> Use the Rule of 72 to estimate how long it will take for an investment to double in value if it earns 4.65% compounded annually. Then; solve for the exact doubling time using the algebraic approach or a financial calculator. Round answers to the nearest month.
Answer Preview: Using the Rule of 72 we would estimate that the investme…

, Chapter: 3 -Problem: 8 >> From the end of 2000 to the end of 2014, the S&P/MX Composite Index rose from 8934 to 14,632. If you had invested $50,000 in a portfolio of the shares of the companies in the Index at the end of 2000, what would the value of those shares have been at the end of 2014? (This calculation considers only the price appreciation of the original shares. It does not include additional growth in the portfol
Answer Preview: The value of the shares in the portfolio increased i…

, Chapter: 8 -Problem: 13 >> Isaac borrowed $3000 at 4.5% compounded quarterly 3 1/2 years ago. One year ago he made a payment of $1200. What amount will extinguish the loan today?
Answer Preview: Amount owed before the 1200 payment 1 year ago 3000 1 01125 33…

, Chapter: 2 -Problem: 15 >> Perform the multiplication or division indicated in each of the following expressions and collect the like terms.18x2/3x
Answer Preview: 18x 2 3x 6 3 x 2 3x 6x …

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