Questions from Business Mathematics

Q: Monica finished her program at New Brunswick Community College on June 3

Monica finished her program at New Brunswick Community College on June 3 with Canada Student Loans totalling $6800. She decided to capitalize the interest that accrued (at prime plus 2.5%) during the...

Q: Kari had Canada Student Loans totalling $3800 when she completed her

Kari had Canada Student Loans totalling $3800 when she completed her program at Niagara College in December. She had enough savings at the end of June to pay the interest that had accrued during the s...

Q: Seth had accumulated Canada Student Loans totalling $5200 by the time

Seth had accumulated Canada Student Loans totalling $5200 by the time he graduated from Mount Royal College in May. He arranged with the National Student Loans Service Centre to select the floating-ra...

Q: Monthly payments were originally calculated to repay a $20,000

Monthly payments were originally calculated to repay a $20,000 loan at 7% compounded monthly over a 10-year period. After one year, the debtor took advantage of an option in the loan contract to incre...

Q: It will cost A-1 Courier $1300 to convert a

It will cost A-1 Courier $1300 to convert a van from gasoline to natural gas fuel. The remaining useful life of the van is estimated at five years. To financially justify the conversion, what must be...

Q: Conrad has two loans outstanding, which he can repay at any

Conrad has two loans outstanding, which he can repay at any time. He has just made the 11th monthly payment on an $8500 loan at 10.5% compounded monthly for a three-year term. The 22nd monthly payment...

Q: Jeanette wishes to retire in 30 years at age 55 with retirement

Jeanette wishes to retire in 30 years at age 55 with retirement savings that have the purchasing power of $300,000 in today’s dollars. 1. If the rate of inflation for the next 30 years is 2% per year,...

Q: The average annual costs to support a child born today are estimated

The average annual costs to support a child born today are estimated as follows: Years 1–6: $12,000 Years 7–12: 11,000 Years 13–17: 10,000 Years 18–19: 15,000 The costs in the early years include chil...

Q: To compensate for the effects of inflation during their retirement years,

To compensate for the effects of inflation during their retirement years, the Pelyks intend to purchase a combination of annuities that will provide the following pattern of month-end income: Rounded...

Q: For its “Tenth Anniversary Salebration,” Pioneer Furniture is offering terms

For its “Tenth Anniversary Salebration,” Pioneer Furniture is offering terms of 10% down, no interest, and no payments for six months. The balance must then be paid in six equal payments, with the fir...