Problem sets

Show all the various steps to arrive at the answer.

 Section A 

 3. For an investment of $100,000 at 9% interest for 3 years, find

 (a) the simple interest, and (b) the compound interest if interest is calculated once per year.

4. For an investment of $100,000 at 2% interest for 9 years, find (a) the simple interest, and (b) the compound interest if interest is calculated once per year

  Section B

1)As part of his retirement planning, Mr.Martin purchases an annuity that pays 12.5% compounded quarterly. If the quarterly payment is $9,500, how much will Mr. Martin have saved in 5 years? 

  2)As part of his retirement planning, Mr. White purchases an annuity that pays 8.5% compounded semiannually. If the semi annual payment is $7000, how much will Mr. White have saved in 5 years?

 Section C

1. A house sells for $268,500 and a 40% down payment is made. A 30-year mortgage at 7% was obtained.

(i) Find the down payment. 

(ii) Find the amount of the mortgage. 

(iii) Find the monthly payment. 

(iv) Find the total interest paid