Jack wants to buy a boat today today but has realised that if he takes out a loan he can only repay $100 quarterly, with payments made at the beginning of each quarter, over the next 9 years. How much can he spend on his boat today if the interest rate is 14.0% per annum compounded quarterly?
Select one:
a. $2029.05
b. $2100.07
c. $563.89
d. $494.64
13.A savings plan requires deposits of $519 per month for 21 months commencing in 1 month from today. If the interest rate is 10.3% p.a compounding monthly, the value of the investment immediately after the last deposit will be (round to nearest cent; don’t use $ sign or commas):
Select one:
a. $11887.38
b. $1040.17
c. $943.04
d. $11989.41
14.A savings plan requires 48 deposits of $452 per month commencing today. If the interest rate is 4.1% p.a compounding monthly, the value of the investment plan in exactly 4 years from today will be closest to:
Select one:
a. $1922.26
b. $23613.29
c. $2001.08
d. $23532.89
15.Jill is wishing to accumulate $15,000 for a renovation in 4 years’ time. To do this, she will make 16 deposits (quarterly) with the first deposit today. If she can earn 11.8% per annum compounding quarterly, what regular deposit will be needed? (round to nearest cent; don’t use $ sign or commas)
Select one:
a. $2815.50
b. $1520.99
c. $725.69
d. $747.10
19. Your parents established a trust fund on 1 July 2016 which is designed to pay you $1,000 each year commencing 1 July 2022. If the effective annual interest rate is 12.6%, the amount your parents contributed to the fund on 1 July, 2016 is:
Select one:
a. $16176
b. $3894
c. $7937
d. $4385
10.A loan for $7,000 is to be repaid by instalments at the end of each quarter for 5 years. The quarterly instalment is more likely to approximate
Select one:
Select one:
a. $300
b. $200
c. $400
d. $180
