Exam 9: Compound Interest - Future Value and Present Value

Determine the maturity value of $5400 due in 91 months compounding annually at 8.75%.

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.

Betty deposited $17 150.00 in an RRSP on March 1, 2010, at 6.4% compounded quarterly. Subsequently the interest rate was changed to 6.6% compounded monthly on September 1, 2012, and to 6.8% compounded semi-annually on June 1, 2014. What was the value of the RRSP deposit on December 1, 2016, if no further changes in interest were made?

Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. Payments of $30000.00 and $25000.00 were made after four months and ten months respectively. At the end of one year, he borrowed an additional $42500.00. 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 at prime (3%) + 1.25% compounded monthly?

You borrowed $1700.00 at 12.36% p.a. compounded monthly, and repaid $800.00 after three years and $950.00 after five years. How much do you owe at the end of the nine years?

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.

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?

Doris borrowed $5000 from a finance company at an interest of 8% quarterly. The loan is to be repaid in 3 equal payments, annually. What is the amount of the equal payment?

Two payments of $49 000 each must be made 3 year and 5 year from now. If money can earn 4.9% compounded monthly, what single payment 5 years from now would be equivalent to the two scheduled payments?

What is the cash value of $5000 if it is discounted for 5 years at 10% compounded yearly?

Find the present value and the compound discount of $6100.00 due in 7.5 years if interest is 8.26% compounded semi-annually.

You invest $8000 in a floating rate guaranteed investment certificate. For the first 24 months you earn 6% compounded semi-annually. For the next 6 months you earn 12% compounded monthly. What is the maturity value of the certificate?