Exam 9: Compound Interest - Future Value and Present Value

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

Find the principal that will grow to $11 019.45 at 6% compounded semi-annually in 5 years and five months.

Chelsea's grand parents made a trust deposit of $5000.00 on November 30, 2002, at her birth. This trust deposit can be withdrawn on Chelsea's twenty-fifth birthday. To what will the deposit amount on that date at 19.11% 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.

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

What is the present value of $7800.00 payable in six years if the current interest rate is 7.6% p.a., compounded quarterly?

Calculate the future value of $4200 if it is invested at an interest rate of 8.6% compounded quarterly for 3 years and 10 months.

Sean started an RRSP on March 1, 2007, with a deposit of $2000.00. He added $1500.00 on March 1, 2008. What is the accumulated value of his account on December 1, 2008, if interest is 6% compounded quarterly?

Debts of $2800.00 due three months from now, $3500 due 15 months 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.

Allison started an RRSP on March 1, 2011, with a deposit of $2470.00. She added $1900.00 on December 1, 2012, and $1850.00 on September 1, 2013. What is the accumulated value of her account on December 1, 2015, if interest is 7.24% compounded quarterly?

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?

Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he defaulted on his last two payments. What total payment is he expected to make during his third payment, if the defaulted payments are compounded monthly at a rate of 6%?

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.

What sum of money will grow to $23 000.00 in seven years at 9.612% compounded monthly?

A $5000.00, six-year note bearing interest at 8.24% compounded quarterly, discounted three and a half years after the date of issue at 6.6% compounded monthly. Find the proceeds.

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

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?

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?

Six years after Mr. Robertson deposited $7110.00 in a savings account that earned interest at 6.8% p.a., compounded semi-annually, the interest was changed to 7.2% p.a., compounded quarterly. How much was in the account ten years after the deposit was made?