Exam 9: Compound Interestfuture Value and Present Value

Keith took a loan of $20 000 to buy a car at an interest of 4% compounded quarterly,with no monthly payments.On first,second and third anniversary of the loan,he made payments of $5000.What payment on the fourth anniversary will eliminate the debt?

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

Sagheer received two offers for his property that he is selling.Offer 1 consists of $700 000 immediately and offer 2 consists of $500 000 now and $110,000 per annum for the next 2 years.If money earns 6% compounded semi-annually,which offer has a better economic advantage and by how much.Assume no inflation or discount?

Determine the proceeds of $5000 four years and nine months before the due date if interest is 8% compounded semi-annually.

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

Find the future value of and the compound interest on $4575.00 invested at 12.24% compounded monthly for: a)3.5 years b)7 years c)12.5 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?

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?

You invest $12 300 of your money in a locked-in savings account that earns 4.92% compounded monthly for 7 months.You have a family emergency and need to withdraw your funds 2 months early.You sell the savings account at a 5.6% compounded quarterly interest rate.How much did you sell the account for?

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?

Valeri invested $5000 at 9.25% compounded quarterly.After 18 months,the rate changed to 9.75% compounded semi-annually.What amount will Valeri have 3 years after the initial investment?

Jenni started a registered retirement savings plan on January 1,2008,with a deposit of $2000.She added $3000 on January 1,2009,and $2000 on January 1,2010.What is the accumulated value of her RRSP account on July 1,2010,if interest is 12% compounded quarterly?

Debts of $400.00,$450.00 and $500.00 are due in one year,eighteen months and thirty months from now respectively.Determine the single payment now that would settle the debts if interest is 8% p.a.compounded quarterly.

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?

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

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?

Fahira invested $5000.00 at 4.8% compounded quarterly on January 1,2012.On July 1,2013 the rate changed to 5.6% p.a.compounded semi-annually.Calculate the amount Fahira will have on January 1,2005.

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

You borrow $4750 at a rate of 6.72% compounded monthly.You make a partial payment of $1400 in 3 months.You also agree to make two equal payments 3 and 5 months after the partial payment.What is the size of the equal payments? Use a focal date of 8 months.

An investment of $4300.00 earns interest at 9.96% p.a.compounded monthly for four years.At that time the interest rate is changed to 9% compounded semi-annually.How much will the accumulated value be two and a half years after the change?