Q1. 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% interest
None of the other alternatives are correct
$15,778 plus 10% interest
Q2. 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
$39,110
None of the above
$54,224
$41,890
Q3. 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
$300
None of the other alternatives are correct
$500
$1,000
$100
Q4. 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
$46,320
Q5. 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
$36,590.30
None of the above
$66,128.44