1. A loan of $4000 is due in five years. If money is worth 7% compounded annually, find the equivalent payment that would settle the debt
b. in 2 years;
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c. in 5 years;
d. in 10 years.
13. Patrice opened an RRSP deposit account on December 1, 2016, with a deposit of $1000. He added $1000 on July 1, 2018, and $1000 on November 1, 2020. How much is in his account on January 1, 2024, if the deposit earns 6% p.a. compounded monthly?
5. A debt of $5000 is due November 1, 2024. What is the value of the obligation on February 1, 2018, if money is worth 7% compounded quarterly?
11. Joe is negotiating the purchase of a sound system for his DJ business. He can either pay $2000 now, or pay $100 now and $2200 in 18 months. Which option is better if money is worth 8% compounded monthly?