Q: Natalie’s RRSP is currently worth $133,000. She plans
Natalie’s RRSP is currently worth $133,000. She plans to contribute for another seven years, and then let the plan continue to grow through internal earnings for an additional three years. If the RRSP...
See AnswerQ: Mr. Palmer wants to retire in 20 years and purchase a
Mr. Palmer wants to retire in 20 years and purchase a 25-year annuity that will make end-of-quarter payments. The payment size is to be the amount which, 20 years from now, has the purchasing power of...
See AnswerQ: Interprovincial Distributors Ltd. is planning to open a distribution centre in
Interprovincial Distributors Ltd. is planning to open a distribution centre in Calgary in five years. It can purchase suitable land now for the distribution warehouse for $450,000. Annual taxes on the...
See AnswerQ: Canadian Pacific Class B preferred shares have just paid their quarterly $
Canadian Pacific Class B preferred shares have just paid their quarterly $1.00 dividend and are trading on the Toronto Stock Exchange at $50. What will the price of the shares have to be three years f...
See AnswerQ: If Gayle contributes $1000 to her RRSP at the end of
If Gayle contributes $1000 to her RRSP at the end of every quarter for the next 10 years and then contributes $1000 at each month’s end for the subsequent 15 years, how much will she have in her RRSP...
See AnswerQ: The Gills have arranged a second mortgage loan with a face value
The Gills have arranged a second mortgage loan with a face value of $21,500 at an interest rate of 6.5% compounded monthly. The face value is to be fully amortized by equal monthly payments over a fiv...
See AnswerQ: An investor is considering the purchase of an existing closed mortgage that
An investor is considering the purchase of an existing closed mortgage that was written 20 months ago to secure a $45,000 loan at 10% compounded semiannually paying $500 per month for a four-year term...
See AnswerQ: A property is listed for $175,000. A potential
A property is listed for $175,000. A potential purchaser makes an offer of $170,000, consisting of $75,000 cash and a $95,000 mortgage back to the vendor bearing interest at 8% compounded semiannually...
See AnswerQ: What is the equivalent cash value of the offer if the vendor
What is the equivalent cash value of the offer if the vendor financing arrangement is for the same 10-year amortization but with 1. a five-year term? 2. a one-year term?
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