Exam 9: Compound Interest - Future Value and Present Value

A $5725.00 investment matures in three years, seven months. Find the maturity value if interest is 9.16% p.a. compounded quarterly.

Derik bought a promissory note this morning. Find the maturity value of the promissory note for $1200.00 dated March 31, 2016, and due on August 31, 2026, if interest is 3.64% compounded quarterly.

RBC offers three-year term deposits at 3.125% compounded annually while Meridian credit union offers such deposits at 3.05% compounded quarterly. If you invest $23 000 at RBC and the same amount at Meridian, what is the maturity value of your deposit at each bank?

Use the exact method to compute the proceeds of a non-interest-bearing note for $5640.00 six years and seven months before the due date, if money is worth 7.25% p.a. compounded annually.

Compute the discounted value of $5125.00 due in three years, eight months if money is worth 8.24% compounded quarterly.

How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?

Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be settled by a single payment one year from now. What is the size of that single payment if interest is 7.5% compounded monthly?

Find m for the investment of $1000.00 for 2 years at 1.8% compounded semi-annually.

What periodic payment does Imran receive from a $100 000, 3-year, monthly payment GIC earning a nominal rate of 2.25% payable monthly?

Determine the accumulated value of $4100.00 compounded semi-annually at 8% p.a. for seven years.

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 4 years from now would be equivalent to the two scheduled payments?

Calculate the proceeds of $8956.00 due in seven years, eleven months discounted at 7.5% compounded semi-annually.

A note dated May 1, 2011 promises the payment of $5660.00 with interest at 6.5% p.a. compounded semi-annually on November 1, 2015. Find the proceeds of the sale of the note on May 1, 2013 if money was then worth 7.2% p.a. compounded monthly.

Determine the proceeds of $5000 four years and nine months before the due date if interest is 8% compounded semi-annually.

Chelsea's grand parents made a trust deposit of $5000.00 on November 30, 2002, at her birth. This trust deposit can be withdrawn on Chelsea's twenty-fifth birthday. To what will the deposit amount on that date at 19.11% compounded semi-annually?

How much would you have to deposit in an account today to have $37 000.00 in a three-year term deposit at maturity if interest is 7.775% compounded annually?

Darcy's parents made a trust deposit of $3500.00 on October 31, 2002, to be withdrawn on Darcy's eighteenth birthday on July 31, 2016. To what will the deposit amount on that date at 13.48% compounded quarterly?

You have an investment that will mature in 33 months and have a value of $4300. You need some quick cash and decide to sell today at a discount rate of 8.2% compounded quarterly. What is the cash value?

Accumulated $1720.00 at 8.4% p.a. compounded monthly from March 1, 2011, to July 1, 2013, and thereafter at 8.88% p.a. compounded quarterly. What is the amount on April 1, 2015?

Debts of $2800.00 due three months from now and $4600.00 due twenty-one months from now are to be settled by two equal payments due in three months and nine months from now respectively. Determine the size of the equal replacement payments if interest is 5.5% p.a. compounded quarterly.