How much interest did shane earn from the investment


Assignment

• A computer assembly company received a loan of $29,000 to purchase a conveyer belt. If the debt accumulated to $46,880 in 4 years, calculate the nominal interest rate compounded daily.?

• What amount invested today will amount to $13,689.10 in two years if the interest rate is 5.30% compounded monthly for the first year and 6.00% compounded daily for the second year?

• A bank in Nova Scotia offers a return of 5.50% compounded quarterly on investments in savings accounts. What nominal interest rate compounded daily will provide the same financial benefit?

• Given a 3-year loan with a rate of 3.00% compounded semi-annually, determine

o Number of compounding periods per year
o Periodic interest rate.
o Term of the loan.
o Number of compounding periods for the term of the loan.

• Shane loaned $350,000 to a small business at 6.25% compounded semi-annually for 3 year and 2 months.

o How much would the business have to repay Shane at the end of the period?

o How much interest did Shane earn from this investment?

• If the population of Canada was estimated to be 37,417,486 in September 2019 and the population of Ontario was estimated to be 3612% of Canada's population, calculate the population of Ontario, rounded up to the next whole number.

• If a current fixed mortgage rate of 5.3% rises to 6.7%, calculate the percent increase in the mortgage rate.

• What was the amount of interest charged on a loan of $12,500 received on January 16, 2019 and settled on April 24, 2019 if the interest rate on the loan was 5.25% p.a.?

• The accumulated value of a mutual fund is $23,378.30 and the interest earned is $7,378.30. If it was growing at 5.75% compounded semi-annually, what is the time period of this investment?

• Crystal invested $550 in her savings account for a period of six months. If the savings account was offering her a simple interest rate of 1.60% p.m. , calculate

o The maturity amount of her investment.
o The interest she earned at the end of the time period.

• Ronald borrowed $2,700 from a money lender. If the money lender charges interest at 15.50% p.a., calculate the amount of interest Benjamin had to pay the lender at the end of 19 days.

• Scott invested money into a savings account at 5.00% p.a. simple interest. At the end of six months, the amount matured to $31,518.75.

o What was the amount invested?
o What was the interest earned?

• Calculate the two equal instalments, one in one year and the other in two years, that would replace a payment of $1,600.00 today and a payment of $7,100.00 in five years. Assume money is worth 5.00% compounded semi-annually.

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