Question 1

CO LL AP SE
Mr. and Mrs. Fox have each contributed $1825.00 per year for the last eight years into RRSP accounts
earning 6.93% compounded annually. Suppose they leave their accumulated contributions for another
five years in the RRSP at the same rate of interest.
a) How much will Mr. and Mrs. Fox have in total in their RRSP accounts?

b) How much did the Fox's contribute?

c) How much will be interest?

Choice of formulas or the BA II+ keys.  Calculators should be set to six decimal places.   Round your final
answers to the nearest cent, and include appropriate units. 

If you use the formulas, demonstrate good form in your solution, showing your work (steps).  Use MATH
TYPE, by clicking the  √   button.
If you use the BA II+ keys, demonstrate good form and show your work.    

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17 days ago

Pratheep Prabaharan 
RE: Question 1
CO LL AP SE
A)

i = 

n = 

PMT = $1825 x 2 = $3650

Fv= 

Fv= 

Fv= 

Fv= 
Fv= $37354.00

B)

$3650 x 8 = $29200

The Fox's have contributed $29200.

C) 

$37354.00 - $29200 = $8154

The interest was $8154

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10 days ago

Sandra Kwon INSTRUCTOR MANAGER 
RE: Question 1
CO LL AP SE
 Thanks for your post Pratheep
 good job using the FV formula
 glad to see you used Math Type - you can do your entire solution in Math
Type instead of doing regular typing too
 your answer is correct for the 8  years of contributions.... but what about
" they leave their accumulated contributions for another five years " ?
 answer for their contributions (part b) looks good
 for calculating the interest, you have the right idea but would need to re-
calculate the answer for part a to use here

Question 2

Question 2
CO LL AP SE
Clive's daughter will begin college in six years.  When she starts, he wants to provide an annuity of $3350
payable at the end of each 6 months during the three years his daughter attends college.  What single
deposit must he make today that will finance the annuity, if he can invest his money at 7.84% p.a.
compounded semi-annually?

Choice of formulas or the BA II+ keys. Calculators should be set to six decimal places.  Round your final
answer to the nearest cent, and include appropriate units. 
If you use the formulas, demonstrate good form in your solution, showing your work (steps).  Use MATH
TYPE, by clicking the  √   button.
If you use the BA II+ keys, demonstrate good form and show your work. 

FINAL ANSWER should be $11099.29

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6 days ago

Yash Jain 
RE: Question 2
CO LL AP SE

P/Y- 2

C/Y - 2

N-6

I/Y - 7.84%

PV- ?

PMT - 3350$

FV - 0
 

Step 1- setting P/Y and C/Y

step 2- 6 and N

step 3- 7.84 and i/y

step 4- 3350 and PMT

step 5- 0 and FV

step 6- CPT and PV 

Answer- 17606.98

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1 day ago

Sandra Kwon INSTRUCTOR MANAGER 
RE: Question 2
CO LL AP SE
 thanks for your post Yash
 you've shared your solution using both methods, by formula and by
calculator keys
o nice job using MathType so your formula work is very clear
o glad to see how you set up the calculator keys
 you've arrived at the same answer, so that let's us know it is probably right
 your solution is not complete - 17606.99 is only halfway to the final answer
 you have only calculated the amount (your PV of 17606.99) of the 3-years
when the daughter is in college
 you are supposed to calculate the amount Clive needs to invest now (6-
years before college)
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6 days ago

Manya Kushwah 
RE: Question 2
CO LL AP SE
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1 day ago

Sandra Kwon INSTRUCTOR MANAGER 
RE: Question 2
CO LL AP SE
 thanks for your post Manya
 nice job using MathType so your formula work is very clear
 your solution is not complete - 17606.99 is only halfway to the final answer
 you have only calculated the amount (your PV of 17606.99) of the 3-years
when the daughter is in college
 you are supposed to calculate the amount Clive needs to invest now (6-
years before college)

Question 3

Question 3
CO LL AP SE
You currently have $4000 saved towards the purchase of a new car. You want to be able to buy a car for
$15000 in 4 years. Your money is earning 5% compounded yearly. What is the size of your yearly
deposit?

Use BA II+ keys.  Demonstrate good form and show your work.  Calculators should be set to six decimal
places.  Round your final answer to the nearest cent, and include appropriate units. 

FINAL ANSWER should be $2352.13

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6 days ago

Manya Kushwah 
RE: Question 3
CO LL AP SE
P/Y= 1

C/Y= 1

n= 4

I/Y= 5%

PV= 0

PMT= ?

FV= 15000-4000= 11000

PMT= 2552.13

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1 day ago

Sandra Kwon INSTRUCTOR MANAGER 
RE: Question 3
CO LL AP SE
 thanks for your post Manya
 thanks for showing how you set up the keys
 please reconsider your PV value, it should not be zero
 question says "you currently have $4000", meaning you have this
amount today
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6 days ago

Yash Jain 
RE: Question 3
CO LL AP SE
P/Y= 1

C/Y= 1

n= 4

I/Y= 5%

PV= 0

PMT= ?

FV= 15000-4000= 11000

BA II Steps -:

1. Clear and Set the P/Y and C/Y 

2. type 4 and n

3. type 5 and I/Y

4. type 0 and PV

5. type 11000 and FV

6. type CPT and PMT 

PMT= 2552.1302 so, after rounding 2552.13

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1 day ago

Sandra Kwon INSTRUCTOR MANAGER 
RE: Question 3
CO LL AP SE
 thanks for your post Yash
 thanks for showing how you set up the keys
 no need to list how you entered them into the calculator
 please reconsider your PV value, it should not be zero
 question says "you currently have $4000", meaning you have this
amount today