Exam 9: Compound Interest - Future Value and Present Value

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

You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you earn 4.9% compounded semi-annually. For the next 8 months you earn 4.32% compounded monthly. What is the maturity value of the certificate?

Determine the discounted value now of $7700.00 due in forty-four months at 7.5% compounded quarterly.

Determine the sum of money that will grow to $18 530 in four years, eleven months at 5.2% compounded quarterly.

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?

Determine n if an amount is invested for 3.5 years at 2.25% compounded quarterly.

You owe $4510 due in 7 months. In addition you owe $3780 due in 13 months and $5125 due in 21 months. You are paying 8.64% compounded monthly on your loan. What single amount three months from now will pay off the entire loan of the three future payments?

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years. If the assets of the credit union currently amount to $50 million, what will the forecasted assets be in ten years?

You want to retire with $400000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years. How much money do you have to invest today in order to achieve your goal?

Find the maturity value of a promissory note for $1400.00 dated March 31, 2001, and due on August 31, 2006, if interest is 7.64% compounded quarterly.

A seven-year, non-interest-bearing note for $6532.00 is discounted three years and two months before its due date at 9.12% compounded quarterly. Find the proceeds of the note.

Use the exact method to determine the accumulated value of $3875.00 due in 61 months compounded annually at 9.75% p.a.

Find the principal that will grow to $11019.45 at 6% compounded semi-annually in 5 years and five months.

You borrow $4750 at a rate of 6.72% compounded monthly. You make a partial payment of $1400 in 3 months. You also agree to make two equal payments 3 and 5 months after the partial payment. What is the size of the equal payments? Use a focal date of 8 months.

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?

Loans of $1600.00, $8300.00, and $12100.00 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?

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?

Determine the proceeds of $19000 three years and three months before the due date if interest is 7.6% compounded semi-annually.

A ten-year promissory note discounted after seven years at 10% compounded quarterly has a maturity value of $40000. Find the proceeds.

You lend a friend $800 and they agree to make quarterly payments for 1 year. You charge your friend 8.52% compounded quarterly. What is the size of the payments?