Questions from Business Mathematics

Q: A five-year, compound interest GIC purchased for $1000

A five-year, compound interest GIC purchased for $1000 earns 4% compounded annually. 1. How much interest will the GIC earn in the fifth year? 2. If the rate of inflation during the five-year term is...

Q: To satisfy more stringent restrictions on toxic waste discharge, a pulp

To satisfy more stringent restrictions on toxic waste discharge, a pulp mill will have to reduce toxic waste by 10% from the previous year’s level every year for the next five years. What fraction is...

Q: Three equal payments were made one, two, and three years

Three equal payments were made one, two, and three years after the date on which a $10,000 loan was granted at 10.5% compounded monthly. If the balance immediately after the third payment was $5326.94...

Q: Use the formula FV = PV(1 + i)n

Use the formula FV = PV(1 + i)n to calculate i if PV = $2000, FV = $9321.91, and n = 20.

Q: If the total interest earned on an investment at 2.6

If the total interest earned on an investment at 2.6% compounded monthly for 3 1 2 years was $618.55, what was the original investment?

Q: Four years ago John borrowed $3000 from Arlette. The principal

Four years ago John borrowed $3000 from Arlette. The principal with interest at 10% compounded semiannually is to be repaid six years from the date of the loan. Fifteen months ago, John borrowed anoth...

Q: If an investor has the choice between rates of 5.5

If an investor has the choice between rates of 5.5% compounded semiannually and 5.6% compounded annually for a six-year GIC, which rate should be chosen?

Q: The population for the Region of Waterloo as recorded in the census

The population for the Region of Waterloo as recorded in the census of 2016 was 583,500. Estimates for population growth in the region are predicting increases of 1.85% per year for the next 15 years....

Q: At the same time as compound interest Government Bonds were being sold

At the same time as compound interest Government Bonds were being sold with guaranteed minimum annual rates of 5.25%, 6%, and 6.75% in the first three years of their 10-year term, a trust company offe...

Q: Jacques has just been notified that the combined principal and interest on

Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% compounded monthly is now $2297.78. How much of this amount is principal and how...