Exam 9: Compound Interest - Future Value and Present Value

Determine the compound discount on $18 875 due in 7.75 years if interest is 9.72% compounded monthly.

A debt of $5000.00 is to be repaid by payments of $2000.00 after two years, $2500.00 after three years and a final payment after five years. Determine the size of the final payment if interest is 10% p.a. compounded semi-annually.

An obligation of $17 320 is due two years from now with interest at 9.2% compounded semi-annually. The obligation is to be settled by a payment of $8000 in seven months and a final payment in sixteen months. What is the size of the second payment if interest is now 10.8% compounded monthly?

Doris borrowed $5000 from a finance company at an interest of 8% quarterly. The loan is to be repaid in 3 equal payments, annually. What is the amount of the equal payment?

A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually?

Suppose $4320.00 is invested for five years, eight months at 8.25% compounded annually. What is the compounded amount?

Loans of $1600.00, $8300.00, and $12 100.00 are due now, in four years, and in seven years respectively. What is the equivalent single sum of money due three and a half years from now if interest is 10.8% compounded monthly?

A debt payment in the amount of $2000.00 due today, is to be settled by a payment of $1500.00 nine months from now and a final payment in 18 months. Determine the size of the final payment if the money is worth 12% p.a. compounded quarterly. Use the Banker's Method.

You invest $12 300 of your money in a locked-in savings account that earns 4.92% compounded monthly for 7 months. You have a family emergency and need to withdraw your funds 2 months early. You sell the savings account at a 5.6% compounded quarterly interest rate. How much did you sell the account for?

Gabriel defaulted on her tax worth $4189.00. CRA audited her and after 31 months sent her the tax bill, which also included an interest rate compounded annually at 3.75% p.a. What is the total tax due, if Gabriel pays it immediately on receiving the notice?

Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. Payments of $30000.00 and $25000.00 were made after four months and ten months respectively. At the end of one year, he borrowed an additional $42500.00. Seven months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage if the line of credit interest was at prime (3%)+ 1.25% compounded monthly?

How much will Ahsan's registered retirement savings deposit of $30 000.00 be worth in 21 years at 5% compounded quarterly?

You have a line of credit loan with the Bank of Hong Kong. The initial loan balance was $7000.00. Payments of $3000.00 and $2500.00 were made after four months and ten months respectively. At the end of one year, you borrowed an additional $4250.00. Seven months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage if the line of credit interest was 8.52% compounded monthly?

A loan of $2500.00 made today is to be repaid in three equal installments due in one year, two years, and four years respectively. What is the size of the equal installments if money is worth 8.4% compounded monthly?

Find the principal which will grow to $7258.00 at 6.58% compounded semi-annually in four years and five months.

Two payments of $49 000 each must be made 3 year and 5 year from now. If money can earn 4.9% compounded monthly, what single payment 3 years from now would be equivalent to the two scheduled payments?

Calculate the accumulated value of $3000.00 at 8% compounded quarterly for fifteen years. How much of the amount is interest?

Arjun has taken a loan and debt can be repaid by payments of $425.00 today, $377.00 in two years and $560.00 in five years. What single payment would settle the debt three years from now if money is worth 6.25% p.a. compounded quarterly?

Alex's property taxes are $4768.00 for his house valued at $349 900 in Whitby due on July 1 of 2014. How much discount should city give, if Alex pays his property tax 8 months in advance, when the city can earn 3% compounded monthly on the surplus fund?

Calculate the cash value of a bond that will mature with a value of $16 500 in 7 years and 5 months. The bond is discounted at 5.8% compounded semi-annually.