Exam 9: Compound Interestfuture Value and Present Value

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?

Shaun wants to invest his money such that he accumulates $10 000 after 3½ years at a rate of 4% compounded monthly? How much money should he invest today?

Suppose $4320.00 is invested for five years,eight months at 8.25% compounded annually.What is the compounded amount?

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?

Loans of $1600.00,$8300.00,and $12 100.00 are due now,in four years,and in seven years respectively.What is the equivalent single sum of money due three and a half years from now if interest is 10.8% compounded monthly?

Calculate the accumulated value of $1000.00 at 8% compounded monthly for 12 years.

A note dated July 1,2000,promises to pay $9000 with interest at 12.4% compounded quarterly on January 1,2007.Find the proceeds from the sale of the note on July 1,2002,if money is then worth 8.64% compounded semi-annually.

Karen started a registered retirement savings plan on February 1,2000,with a deposit of $2210.She added $2000 on February 1,2001,and $1475 on February 1,2004.What is the accumulated value of her RRSP account on August 1,2005,if interest is 10.44% compounded quarterly?

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 3 years from now would be equivalent to the two scheduled payments?

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?

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 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.

An investment of $21 700 is accumulated at 5.24% compounded quarterly for three and one-half years.At that time the interest rate is changed to 6.12% compounded monthly.How much is the investment worth two years after the change in interest rate?

Find the present value and the compound discount of $7500 due in five years and six months if interest is 4.8% compounded quarterly.

Calculate the cash value of a bond that will mature with a value of $16 500 in 7 years and 5 months.The bond is discounted at 5.8% compounded semi-annually.

Determine the nominal rate of interest if the periodic rate is 1.75% per quarter.

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?

A $8000.00 investment matures in five years,three months.Find the maturity value if interest is 12% p.a.compounded quarterly.

An obligation of $17 320 is due two years from now with interest at 9.2% compounded semi-annually.The obligation is to be settled by a payment of $8000 in seven months and a final payment in sixteen months.What is the size of the second payment if interest is now 10.8% compounded monthly?

Ontario passed a law in 1996 that the names of all public servants earning $100 000 or more will be published starting 1997.What is the equivalent of that amount in 2013 assuming Ontario's recommended discount rate is 2.5% per year?