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Be Sure To Include The FORMULA in Your Solution and GIVEN INFORMATION. I PRT A I + P A P (1 + RT) A P (1 + I) I A - P I A - (RN) I RN - PV
Be Sure To Include The FORMULA in Your Solution and GIVEN INFORMATION. I PRT A I + P A P (1 + RT) A P (1 + I) I A - P I A - (RN) I RN - PV
Be Sure To Include The FORMULA in Your Solution and GIVEN INFORMATION. I PRT A I + P A P (1 + RT) A P (1 + I) I A - P I A - (RN) I RN - PV
I = A – (Rn) I = Rn - PV
Knowledge 7 marks
1. Complete the table. Show all your work to receive full marks. Be sure to include appropriate units.
[3 marks]
Simple
Principal ($) Interest Rate Time Interest Earned ($) Total Amount ($)
(per year)
1300 2.1 % 24 months
2. An investment earns 10% per year for 5 years. Determine i and n under each type of compounding.
[4 marks]
Compounding Period Interest rate, i Time, n
a) Annual
b) Semi-annual
c) Quarterly
d) Monthly
MCF3M Name: ______________________
Application 7 marks
1. Gwen has $12 000 to invest in an account for 5 years. The bank will give her 7%/a interest compounded
annually. How much will Gwen have at the end of the 5 years? Round your answer to the nearest cent.
[3 marks]
2. Sula has contributed $50 to an RRSP at the end of each week for the past 30 years. During this time, the
RRSP has earned an average of 13%/a compounded weekly.
Communication 4 marks
1. What is a mutual fund? What is a GIC? What advantage does one have over the other? [4 marks]
Thinking 3 marks
1. Jaime uses the formula to determine how much he will have to invest now to
accrue $9850. For how many years does he plan to keep the money invested?
a. 6 c. 12
b. 10 d. 72
2. Ahmed used a total of $2122.27 over several months to repay a simple interest loan with a 5% interest
rate that he had borrowed four years ago. What was the original amount of the loan?
a. $2546.72 c. $2193.01
b. $1697.82 d. $1768.56
3. The present value of the last payment of an annuity is $4000(1 + .075/4) -24. If the annuity earns 7.5%/a,
for how many years will the payments be made?
a. 2 c. 6
b. 12 d. 24