Exam 9: Compound Interestfuture Value and Present Value

Determine the accumulated value of $4100.00 compounded semi-annually at 8% p.a.for seven years.

Ontario passed a law in 1996 that the names of all public servants earning $100 000 or more will be published starting 1997.This year (2013),Ontario is planning to revise the amount to an equivalent purchasing power amount in 2014.What is the amount in 2014,beyond which the names of the Ontario's public servants should be published,assuming the recommended discount rate is 2.5% per year?

Find the compound interest earned by $1910 invested at 7.5% compounded semi-annually for seven 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?

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?

The Get What You Pay For Bank advertises capital savings at 12% compounded monthly while Give Me Your Money Trust offers premium savings at 12.36% compounded yearly.Suppose you have $500.00 to invest for two years. a)Which deposit will earn more interest? b)What is the difference in the amount of interest?

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

Six years after Ellen deposited $4500 in a savings account that earned interest at 4.68% compounded monthly,the rate of interest was changed to 6.4% compounded semi-annually.How much was in the account thirteen years after the deposit was made?

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?

Calculate the proceeds of $8956.00 due in seven years,eleven months discounted at 7.5% compounded semi-annually.

A twenty-year note for $10 000.00 bearing interest at 12% compounded monthly is discounted at 8% compounded quarterly four years and six months before maturity.Find the proceeds of the note.

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

A three-year,$12 000 promissory note bearing interest at 11.6% compounded quarterly is discounted two years after the date of issue at 9.64% compounded semi-annually.What are the proceeds of the note?

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

Determine the compound discount on $18 875 due in 7.75 years if interest is 9.72% compounded monthly.

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?

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

ICICI quotes nominal annual interest rate of 6.6% compounded annually,6.5% compounded semi-annually and 6.4% compounded monthly on 5 year compound interest GICs.What rate should an investor choose?

A court ruled in favour of Professor Dumbledore.Professor Dumbledore successfully claimed that that Professor Umbridge defaulted on two payments of 1000 galleons each.One payment was due 18 months ago and the other 11 months ago.What is the appropriate amount for the court to order Umbridge to pay immediately if the court uses 6% compounded monthly for the interest rate money can earn?