Questions:
Q1. 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 10%. How much is sitting in the TD bank account as of now? Please round to the nearest whole number.
$15,937
$25,937
$10,000
$6,147
$38,550
Q2. Fred Flintstone is planning to retirement in the next ten years, he has estimated that he requires $200,000 on the date of retirement. Bedrock Bank has a special retirement package in which if you can investment a semi-annual fixed payment for the next 10 years at 12%. How much will Fred need to invest for the next 10 years so he will get $200,000 at retirement? (rounded to 2 decimal places)
$ 5,734.20
$ 17,436.94
$ 5,436.91
None of the other alternatives are correct
$ 15,173.59
Q3. The Toronto Cancer Society needs $70,000 for the purchase of a new cancer treatment piece of equipment in four years. If The Toronto Cancer Society is able to deposit $47,811 at the beginning of this year, what rate of interest - compounded annually - must The Toronto Cancer Society receive to fund the purchase of this piece of equipment in four years?
9%
10%
8%
11%
7%
Q4. 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?
$36,590.30
$63,152.80
None of the above
$37,770.22
$66,128.44
Q5. You need $150,000 five years from now to be able to pay off your mortgage. If you are earning 8% interest on your money at the bank. How much do you need to invest at the end of each year, so that at the end of the fifth year you are able to pay off your mortgage?
$50,000
$25,568
$16,279
$102,089
None of the other alternatives are correct