Exam 9: Compound Interest - Future Value and Present Value

Calculate the cash value of a bond that will mature with a value of $16500 in 7 years and 5 months. The bond is discounted at 5.8% compounded semi-annually.

Yellowknife Savings offers three-year term deposits at 9.125% compounded annually while your credit union offers such deposits at 8.9% compounded quarterly. If you have $3000 to invest, what is the maturity value of your deposit a) at Yellowknife Savings? b) at your credit union?

What sum of money will grow to $23000.00 in seven years at 9.612% compounded monthly?

How much would you have to deposit in an account today to have $37000.00 in a three-year term deposit at maturity if interest is 7.775% compounded annually?

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

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.

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?

Two debt payments, the first in the amount of $1600.00 due today, and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a. compounded quarterly, are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months. Determine the size of the final payment if the money is worth 12.12% p.a. compounded monthly.

How much will a registered retirement savings deposit of $13500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?

Calculate the present value of $12 500.00 due in two years and nine months if interest is 7.8% p.a. compounded semi-annually.

Find the compound interest earned by $500 invested at 3% compounded semi-annually for ten years.

Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.

You have an investment that will mature for $6825 in 57 months. You sell the investment 21 months before maturity. The discount rates used are 5.6% compounded quarterly for the first nine months of the discount period (from the date of maturity) and then 4.92% compounded monthly for the remaining discount period. How much did you sell the investment for?

A $41200.00, non-interest-bearing note due August 1, 2003, discounted on March 1, 2001, at 7.32% compounded monthly. Find the proceeds.

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?

An investment of $2 500.00 accumulates interest at 9.25% compounded quarterly. After 18 months the rate changed to 9.75% compounded semi-annually. Calculate the accumulated value three years after the initial investment.

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.

The Rob U Blind Bank advertises capital savings at 7.128% compounded semi-annually while Take Your Money Trust offers premium savings at 7.1% compounded monthly. Suppose you have $4400.00 to invest for two years. a) Which deposit will earn more interest? b) What is the difference in the amount of interest?

Calculate the accumulated value of $1000.00 at 8% compounded monthly for 12 years.

Determine the maturity value of $2000 due in 63 months compounding annually at 10%.