Li buys a $100 000 life insurance policy, which requires an ...

[imanialler]

Question 1

Cameron is 35 years old and intends to retire at the age of 60. He is planning to contribute $3000 at the beginning of each six-month period to an RRSP. What semi-annually compounded rate of interest must his RRSP earn in order to reach $600 000 after 25 years?
◦ 4.86%
◦ 9.72%
◦ 9.52%
◦ 4.72%
◦ 9.43%

Question 2

Li buys a $100 000 life insurance policy, which requires an annual premium of $420 or a monthly premium of $37. In either case, the premium is payable at the beginning of the period of coverage. What is the effective rate of interest Li pays, if he chooses monthly payment plan?
◦ 13.04%
◦ 1.09%
◦ 5.7%
◦ 10.89%
◦ 10.39%

[ngr69]

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[imanialler]

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[ngr69]

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