Welcome to Navigate Powered by NIDES Foundations of Mathematics 12. Please note that the First Assignment is a requirement to be registered in the course. Legal last name: First name: Other last name: Home phone#: Middle name: Cell Phone #: Student Email: Parent or guardian email: Other school attending: This assignment is worth approximately 3 % of your final grade for the course. It is required for you to complete this assignment and achieve a minimum of 60% in order to be registered in Foundations of Mathematics 12. There are five lessons that you will need to complete in order to write the First Assignment. Below are the links to the lessons. http://app.contentconnections.ca/sides/caafm12/lesson1/lesson1controllerstream.html http://app.contentconnections.ca/sides/caafm12/lesson2/lesson2controllerstream.html http://app.contentconnections.ca/sides/caafm12/lesson3/lesson3controllerstream.html http://app.contentconnections.ca/sides/caafm12/lesson4/lesson4controllerstream.html http://app.contentconnections.ca/sides/caafm12/lesson5/lesson5controllerstream.html When you have completed this assignment, return it as an attachment to an email to: registrar@sd71.bc.ca Total = % 68 Show all financial application inputs from the calculator where provided. Simple Interest: I Prt Compound Interest: A I P 1 Rate of Return: Interest Earned Amount of Investment nt r n Version 1 2013 Page 1 of 11 Unit 1
1. Fill in the missing values in the table below. Show all work in space provided algebraically. Principal Annual Interest Rate Time Frame Simple Interest Earned a. $700 4 1 2 2 years b. 3 1 4 7 months $5.72 c. $250 120 days $16.50 d. $1575 16.5% $215 Version 1 2013 Page 2 of 11 Unit 1
2. How long does it take an investment to quadruple in value if it earns 4% simple interest per year? (Determine your answer algebraically.) 2. 3. a. Determine how much you would have to deposit into a CD that was paying 2.75% simple interest annually if you wanted to have $9760 in the account after 8 years. (Determine your answer algebraically.) b. Calculate the rate of return on this investment. a. b. 4. When Josh was 10 years old, his godfather bought him a $5000 CSB that earned simple interest. When Josh turned 20 years old the CSB was worth $8950. a. At what rate did the CSB earn annual interest? (Determine your answer algebraically.) 1 mark a. Version 1 2013 Page 3 of 11 Unit 1
5 Fill in the missing values in the table below. Show all work in space provided. (Determine your answer algebraically for part a and b.) Present Value Annual Rate Compounded Time Frame Future Value Interest Earned a. $500 1 4 2 Semi-Annually 2 years 1 mark 1 mark b. 5 Quarterly 6 years $1616.83 1 mark 1 mark Fill the inputs for the Finance Application for part c. c. $1250 Monthly 16 months $1381.02 1 mark 1 mark Version 1 2013 Page 4 of 11 Unit 1
Fill the inputs for the Finance Application for part d. d. $875 10.5% Daily $2025 1 mark 1 mark 6. Display the value of two different investments after 2 years, 6 years, 10 years, 14 years, and 17 years on the grid provided. Investment one was $10000 earning simple interest at 5% per year. Investment two was $10000 earning the same rate but compounded semi-annually. 5 marks Version 1 2013 Page 5 of 11 Unit 1
7. John and Janet each received an inheritance from their families. John invested his inheritance that earned an annual rate of interest of 5.25% compounded quarterly for 20 years and now had $250000 in the account. Janet invested hers at the same terms and had the same amount of money after 15 years. Algebraically calculate how much John and Janet inherited. 7. 4 marks 8. If John had inherited $100000 and wanted it to grow into $500000 in 25 years, what rate of annual interest compounded monthly would he need to earn to reach his goal? Solve this problem algebraically. 8. 4 marks Version 1 2013 Page 6 of 11 Unit 1
9. Mary has a plan to open her own bakery. She needs $50000 of her own money in order to qualify for further financing at her local bank. How long would it take her to have enough money to open her bakery if she invested $35000 now at an annual rate of 7.25% compounded semi-annually? 9. 4 marks 10. Five years ago Peter invested $20000 into a 5 year GIC at an annual rate of 4.75% compounded monthly. His brother Troy put some money into a CD five years ago that earned him an annual rate of 3.95% compounded daily. If both the investments are the same value after five years, how much did Troy invest in the CD? Peter Troy 10. Version 1 2013 Page 7 of 11 Unit 1
11. Bruce and Sharon are the same age and both had pension plans with their place of employment. Sharon started contributing $2500 per year at age 25. Bruce did not start making regular contributions until age 40, but at that point contributed $6500 per year. Sharon s plan earned and annual rate of 4.55% compounded quarterly whereas Bruce s plan paid an annual rate of 4.85% compounded semi-annually. Bruce Sharon a. What was the value of each plan when each is 65 years old? b. How much did Bruce and Sharon contribute to their respective plans? a. c. How much interest did each earn? b. c. Version 1 2013 Page 8 of 11 Unit 1
d. Compare their rate of returns. d. 12. Jim puts had $5000 in a CD on January 1, 2008. He deposited an additional $350 dollars each month for the next 4 years. What annual rate of interest compounded weekly would he need in order to have had a total of $22500 in his CD at the end of December 2012? 12. 3 marks 13. Harjit wants to save $35000 so he can purchase a new vehicle with cash. He can put $150 per week into an investment that earns an annual rate of 3.25% compounded quarterly. How many months until he will have enough money saved? 13. 3 marks Version 1 2013 Page 9 of 11 Unit 1
14. Determine which of the following investments will have the greater rate of return. a. A five year $40000 GIC that earns an annual rate of interest of 6.5% compounded annually. b. A five year $10000 CSB that pays simple interest of 7.8% per year. c. An investment where $2500 is deposited each month into an account for five years that pays an annual rate of interest of 9.8% compounded semi-annually. (Determine your answer algebraically.) 14. 3 marks 15. Robert set up an investment account when he was 18 years old. He put $500 a month into the account for 12 years. This account paid an average annual rate of interest of 5.75% compounded quarterly for the 12 years. At the end of the 12 years, at age 30, Robert took all the money from this investment and put it into a different account that paid a fixed annual rate of 7% compounded annually as long as he did not withdraw any of the money. At what age would Robert have $1000000 in this account? After 12 years 15. 4 marks Version 1 2013 Page 10 of 11 Unit 1
16. Rolfe set up an RRSP for a client when the client was 30 years old. The client put $750 into the account every month until they retired at age 60. The account averaged an annual rate of return of 7.6% per year compounded annually. If the client then wanted to take a monthly disbursement from the account starting at age 60 for the next 25 years, what would the monthly disbursement be if the RRSP investment retained the same terms and after 25 years would have a zero balance? At age 60 At age 85 16. 5 marks Version 1 2013 Page 11 of 11 Unit 1