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Henry has worked for a factor for 31 years and will be retiring. He earned salaries over the past 4 years of $38433, $37776, $39125, and $38782. His employer calculates pension by finding the average of his last 4 years’ salaries and will give him 1.9% of that average for each year he worked. Calculate his pension.
Sally began a job that allows her to earn up to a maximum of 24 days of vacation time. She earns 4 days of vacation each year she is employed. How many years will it take Sally to reach the maximum amount of vacation time?
Note: 1. Answer all questions in space provided.
2. Show your work to receive full marks.
3. Be sure to upload your completed work as Word Document;
no other format will be accepted including .pages.
Question 1:
How much interest will you pay on a debt of $7,500 if you are paying the loan off in nine months. The interest rate is 4.375%. ______________
<b><span style="font-family:"Verdana",sans-serif">Question 2:<o:p></o:p></span></b>
ABC Corp. invested $13,500 in a 270-day term deposit. What is the maturity value if the rate of interest is 3.65%? How much interest will the term deposit earn? ________________
<b><span style="font-family:"Verdana",sans-serif"> </span></b>
Question 3:
What amount of money that, deposited in an account on April 1, 2021, will grow to $657.58 by September 10, 2021, at 4.75% p.a.? __________________
Question 4:
When Mark borrowed $2,300, he agreed to repay the loan in two equal payments, to be made 90 days and 135 days from the day the money was borrowed. If interest on the loan is 9.25%, what is the size of the equal payments if a focal date of today is used? _______________<b> <o:p></o:p></b>
Question 5:
What is the price of a $25,000, 91-day Province of British Columbia Treasury bill on its issue date if the current market rate of return is 7.672% p.a.? ______________
The End
using visuals/examples, explain the following: time value of money (TVM). Consider using the following resource,
https://www.investopedia.com/terms/t/timevalueofmoney.asp
Your grandmother has set up an annuity of $4000 in an account that pays 5.2%/a compounded monthly. What equal monthly payments will the annuity provide for in the next 4 years?
Which annuity will earn the greater amount at the end of 2 years?
Justify your answer.
a) $50 at the end of every week at 5%/a compounded weekly
b) $2600 at the end of every year at 5%/a compounded annually
Describe the payments, interest rates, and type of compounding necessary for a 15-year annuity with a future value between $10 000 and $12 000. Use two different compounding periods, each at a different interest rate, to modify the amounts shown.
Darcey would like to accumulate $80 000 in savings before she retires
A 20 years from now. She intends to make the same deposit at the end of
each month in an RRSP that pays 6.3%/a compounded monthly.
a) Draw a timeline to represent the annuity.
b) What regular payment will let Darcey reach her goal?
c) Suppose Darcey decides to wait 5 years before starting her
deposits. What regular payment would she have to make to reach the same goal?
Mario deposits $25 at the end of each month for 4 years into an account that pays 9.6%/a compounded monthly. He then makes no further deposits and no withdrawals. Determine the balance 10 years after his last deposit.
Marcel would like to take a vacation to Mexico during March break, 6 months from today. The trip will cost $3600. Marcel deposits $195 into an account at the end of each month for the next 8 months at 9%/a compounded monthly. Will he have enough money to pay for his trip? Explain.
