Exam 9: Compound Interest - Future Value and Present Value

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

Zara borrowed $4000 from Duca financial at an interest rate of 7% compounded semiannually. The loan is to be repaid in 3 equal payments in two years, three and five years, respectively. How much will be each payment?

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.

Find the proceeds of a non-interest-bearing promissory note for $175 500 discounted 54 months before maturity at 9.75% compounded semi-annually.

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?

Determine the nominal rate of interest if the periodic rate is 1.75% per quarter.

Suman deposited $95 000.00 in an RRSP on April 1, 2016, at 8.22% compounded quarterly. Subsequently the interest rate was changed to 8.5% compounded monthly on September 1, 2016, and to 8.8% compounded semi-annually on June 1, 2017. What was the value of the RRSP deposit on December 1, 2017, if no further changes in interest were made?

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a. compounded: a) annually b) semi-annually c) quarterly d) monthly

A five-year promissory note with a face value of $3500, bearing interest at 11% compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly. What amount was paid for the note?

How much will a registered retirement savings deposit of $10 000.00 be worth in 15 years at 6.00% compounded quarterly? How much of the amount is interest?

Find the sum of money that accumulates to $11 415.00 at 7.6% compounded quarterly in six years, seven 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?

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

Two payments of $10 000 each must be made one year and four years from now. If money can earn 9% compounded monthly, what single payment two years from now would be equivalent to the two scheduled payments?

Debt payments of $1400.00 due today, $5100.00 due in twenty-one months, and $1900.00 due in 4.5 years are to be combined into a single payment due three years from now. What is the size of the single payment if interest is 8.04% p.a. compounded quarterly?

A ten-year promissory note dated April 1, 2001, with a face value of $4700.00 bearing interest at 7.2% compounded semi-annually, discounted seven years later when money was worth 9.92% compounded monthly. Find the proceeds.

An eleven-year promissory note discounted after six years at 9.2% compounded quarterly has a maturity value of $71 500. Find the proceeds.

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?

Three debt payments, the first in the amount of $1600.00 due today, the second in the amount of $7200.00 due in 15 months and the third in the amount of $5000 due in 24 months, are to be settled by two equal payments nine months from now and a final payment in 21 months. Determine the size of the equal payments if the money is worth 12.12% p.a. compounded monthly.

A note dated July 1, 2000, promises to pay $9000 with interest at 12.4% compounded quarterly on January 1, 2007. Find the proceeds from the sale of the note on July 1, 2002, if money is then worth 8.64% compounded semi-annually.