Exam 9: Compound Interest: Further Topics and Applications

For a three-year GIC investment, what nominal rate compounded monthly would put you in the same financial position as 5.5% compounded semiannually?

A portfolio earned 20%, 15%, -10%, 25%, and -5% in five successive years. What was the portfolio's five-year equivalent annually compounded rate of return?

A $5,000 investment was purchased for $4220.50. The bond paid interest at a rate of 3.8% compounded semi-annually until the maturity date. What was the term of the investment?

Which interest rate would you prefer to pay on a loan: 9% compounded monthly, 9.1% compounded quarterly, 9.2% compounded semiannually, or 9.3% compounded annually?

Patty Lo purchased a house that she planned to use as a rental property for $300,000. During the past year, she rented the house for $1750 per month. Property taxes were $3900 for the year, and other expenses were $450 for a new garage door opener and $650 for lawn care. The current appraised value of the property is $315,000. What is Patty Lo's capital gain yield?

Calculate the missing interest rate (to the nearest 0.01%)

Calculate the missing interest rate (to the nearest 0.01%)

Determine the equivalent nominal rate of interest compounded monthly, as 8.4% compounded quarterly.

A $5,000 face value strip bond may be purchased today for $1073.36 yielding the purchaser 7.27% compounded semiannually. How much time (to the nearest day) remains until the maturity date? Assume that each half-year has exactly 182 days.

At the start of 1991, undergraduate students paid $190 per college course. By the end of 2010, the price per course had increased to $565. Determine the annual rate of increase.

Calculate the equivalent interest rate (to the nearest 0.01%)