Exam 9: Compound Interest - Future Value and Present Value

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?

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?

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

Payments of $10 200.00 due one year ago and $13 000.00 due nine months ago are to be replaced by a payment of $5800.00 now, a second payment of $10 000.00 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?

Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded quarterly for 5 years and 6 months.

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

Meridian Credit Union expects an average annual growth rate of 3% for the next four years. If the assets of the credit union currently amount to $11.4 billion, what will the forecasted assets be in four years?

You have an investment that will mature in 20 months with the value of $2500. You need some quick cash and decide to sell it today at a discount rate of 10% compounded quarterly. What is the cash value?

What periodic payment does Imran receive from a $100 000, 3-year, monthly payment GIC earning a nominal rate of 2.25% payable monthly?

You have an investment that will mature in 33 months and have a value of $4300. You need some quick cash and decide to sell today at a discount rate of 8.2% compounded quarterly. What is the cash value?

A 9-month non-interest bearing promissory note is sold 2 months after it was issued. The face value of the note is $8500 and it is discounted at a rate of 5.2% compounded annually. What are the proceeds?

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

Accumulated $1720.00 at 8.4% p.a. compounded monthly from March 1, 2011, to July 1, 2013, and thereafter at 8.88% p.a. compounded quarterly. What is the amount on April 1, 2015?

What sum of money invested at 5.95% p.a., compounded semi-annually, will grow to $28 000.00 in 19.5 years?

A loan of $2500.00 made today is to be repaid in three equal installments due in one year, two years, and four years respectively. What is the size of the equal installments if money is worth 8.4% compounded monthly?

You invest $8500 in a savings account that pays interest of 4.8% compounded monthly. What is the value of your account after 19 months?

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.

RBC offers three-year term deposits at 3.125% compounded annually while Meridian credit union offers such deposits at 3.05% compounded quarterly. If you invest $23 000 at RBC and the same amount at Meridian, what is the maturity value of your deposit at each bank?

A five year promissory note with a face value of $5000, bearing interest at 6% compounded semi-annually, was sold 18 months after its issue date to yield the buyer 4% compounded quarterly. What amount was paid for the note?

A $50 000.00, 5-year note bearing interest at 3.25% compounded quarterly, discounted three and a half years after the date of issue at 2.5% compounded monthly. Find the proceeds.