Select Page
  

6.Lucy borrows $50,000 from the Mighty Bank today and the Bank requests her to repay her loan in four equal payments along with 10% interest. Each of the four payments must be paid at the end of the next four years. What is the amount of each payment? Please round to the nearest whole number.$10,774$15,778$10,774 plus 10% interestNone of the other alternatives are correct$15,778 plus 10% interest5.Juan Valdez buys a Mexican Government Savings Bond for $30,000 Canadian Funds. The market rate of interest in Mexico is 10% and interest is compounded semi-annually. At the end of four years, Juan’s investment will be worth (rounded to the nearest dollar):$36,278$39,110None of the above$54,224$41,8903.If you borrowed $1,000 for a 2 year period, with a simple interest rate of 5% per annum, the total interest to be paid would be$300None of the other alternatives are correct$500$1,000$1001.Your grand-mother puts $1,000 per year in a TD Bank account for you. She started doing this ten years ago to save for a big graduation trip after completion of high school and before starting university. Money is worth 8%. How much is sitting in the TD bank account as of now? Please round to the nearest whole number.$21,589$14,487$10,000$6,710$46,3202.In four years Allan Chu plans to enroll in the masters program at York University. He estimates that tuition will be $40,000 and living expenses will be the same amount. His best investment opportunity is paying 6% compounded semi-annually. How much must Allan invest now to have sufficient funds to cover his education?$37,770.22$63,152.80$36,590.30None of the above$66,128.44