Q1. Lucy borrows $50,000 from the Mighty Bank today and the Bank requests her to repay her loan in four equal payments along with 10% interest. Each of the four payments must be paid at the end of the next four years. What is the amount of each payment? Please round to the nearest whole number.

$10,774

$15,778

$10,774 plus 10% interest

None of the other alternatives are correct

$15,778 plus 10% interest

Q2. Juan Valdez buys a Mexican Government Savings Bond for $30,000 Canadian Funds. The market rate of interest in Mexico is 10% and interest is compounded semi-annually. At the end of four years, Juan's investment will be worth (rounded to the nearest dollar):

$36,278

$39,110

None of the above

$54,224

$41,890

Q3. If you borrowed $1,000 for a 2 year period, with a simple interest rate of 5% per annum, the total interest to be paid would be

$300

None of the other alternatives are correct

$500

$1,000

$100

Q4. Your grand-mother puts $1,000 per year in a TD Bank account for you. She started doing this ten years ago to save for a big graduation trip after completion of high school and before starting university. Money is worth 8%. How much is sitting in the TD bank account as of now? Please round to the nearest whole number.

$21,589

$14,487

$10,000

$6,710

$46,320

Q5. In four years Allan Chu plans to enroll in the masters program at York University. He estimates that tuition will be $40,000 and living expenses will be the same amount. His best investment opportunity is paying 6% compounded semi-annually. How much must Allan invest now to have sufficient funds to cover his education?

$37,770.22

$63,152.80

$36,590.30

None of the above

$66,128.44