Exam 9: Compound Interest - Future Value and Present Value

You will need three amounts of $14,200 in each year for four years in order to go to school. You are planning on going to school starting in 5 years and ending in 8 years (years 5, 6, 7, 8). You are able to earn 9.64% compounded quarterly. How much money do you have to have today in order to be able to go to school?

A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity. Find the proceeds of the note.

A loan of $8000.00 taken out two years ago is to be repaid by three equal installments due now, three years from now, and six years from now respectively. What is the size of the equal installments if interest on the debt is 7.32% p.a. compounded monthly?

You invest $8000 in a floating rate guaranteed investment certificate. For the first 24 months you earn 6% compounded semi-annually. For the next 6 months you earn 12% compounded monthly. What is the maturity value of the certificate?

Find the compound interest earned by $1910 invested at 7.5% compounded semi-annually for seven years.

Find the compound amount of $5700.00 at 11.2% p.a. for seven years compounded monthly.

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

An investment of $4300.00 earns interest at 9.96% p.a. compounded monthly for four years. At that time the interest rate is changed to 9% compounded semi-annually. How much will the accumulated value be two and a half years after the change?

A $17 200 debt will accumulate for six years at 11.6% compounded semi-annually. For how much will the debt sell four years after it was incurred if the buyer of the debt charges 9% compounded quarterly?

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.

Payments of $10200.00 due one year ago and $13000.00 due nine months ago are to be replaced by a payment of $5800.00 now, a second payment of $10000.00 fifteen months from now, and a final payment twenty-four months from now. What is the size of the final payment if interest is 9.2% compounded quarterly?

You want to retire with $370000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years. You currently have $175,000 saved up. How much more do you have to invest in 15 years in order to achieve your goal?

A debt of $4000 due today is to be settled by two equal payments due three months from now, and 9 months from now respectively. What is the size of the equal payments at 8% compounded quarterly?

Calculate the proceeds of $5000.00 due in five years, nine months discounted at 8.0% compounded semi-annually.

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.

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

A debt can be repaid by payments of $4125.00 today, $3770.00 in two years and $5600.00 in five years. What single payment would settle the debt three years from now if money is worth 9.88% p.a. compounded quarterly?

A $8000.00 investment matures in five years, three months. Find the maturity value if interest is 12% p.a. compounded quarterly.

If $3000.00 is invested for seven years and seven months at 6% p.a. compounded quarterly, calculate the maturity value.

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