Question 1

A $41 200.00,non-interest-bearing note due August 1,2003,discounted on March 1,2001,at 7.32% compounded monthly.Find the proceeds.

Accepted Answer

Discount period 2001-03-01 to

Question 2

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?

Accepted Answer

Focal date is 24 months from now.Let the

Question 3

A debt of $8125 due today is to be settled by three equal payments due three months from now,18 months from now,and 39 months from now respectively.What is the size of the equal payments at 6.8% compounded quarterly?

Accepted Answer

Let the size of the three equa

Question 4

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years.If the assets of the credit union currently amount to $50 million,what will the forecasted assets be in ten years?

Accepted Answer

P V = 50 000 000; m = 1; i = 1

Question 5

A variable rate demand loan showed an initial balance of $20 000.00,payments of $5000.00 after six months,$10000.00 after one year,and a final payment after two years.Interest was 6% compounded semi-annually for the first year and 12% compounded monthly for the remaining time.How much was the size of the final payment?

Accepted Answer

Balance after 6 months: PV = 20000.00; m

Question 6

Two years after Sean deposited $5000 in a savings account that earned interest at 6% compounded monthly,the rate of interest was changed to 6.4% compounded semi-annually.How much was in the account fifteen years after the deposit was made?

Accepted Answer

Balance after 2 years FV = 500

Question 7

Find the proceeds of a non-interest-bearing promissory note for $175 500 discounted 54 months before maturity at 9.75% compounded semi-annually.

Accepted Answer

FV = 175000.00; i =

Question 8

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

Accepted Answer

A) $12 440.86 
B) $12 040.86 
C) $12 404.86 
D) $12 444.86 
E) $12 884.86 
A) $12 440.86 
B) $12 040.86 
C) $12 404.86 
D) $12 444.86 
E) $12 884.86

Question 9

A $5725.00 investment matures in three years,seven months.Find the maturity value if interest is 9.16% p.a.compounded quarterly.

Accepted Answer

PV = 5725.00; i = .0

Question 10

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

Accepted Answer

A) $12 440.86 
B) $12 040.86 
C) $12 404.86 
D) $12 444.86 
E) $12 884.86 
A) $12 440.86 
B) $12 040.86 
C) $12 404.86 
D) $12 444.86 
E) $12 884.86

Question 11

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a.compounded:
a)annually
b)semi-annually
c)quarterly
d)monthly

Accepted Answer

P V = 7100.00 a)m = 1,i = 7.6%

Question 12

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

Accepted Answer

A) $3763.18 
B) $3776.32 
C) $4745.43 
D) $4712.57 
E) $4882.57 
A) $3763.18 
B) $3776.32 
C) $4745.43 
D) $4712.57 
E) $4882.57

Question 13

Albert made investments of $1000 each for two years.The first one at an interest of 4.8% compounded monthly and the second at 4.9% compounded annually.Calculate the total value of his investment in two years.

Accepted Answer

A) $1100.55 
B) $1100.40 
C) $2000 
D) $2200.95 
E) $2100.55 
A) $1100.55 
B) $1100.40 
C) $2000 
D) $2200.95 
E) $2100.55

Question 14

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?

Accepted Answer

A) $9169.79 
B) $9669.79 
C) $9119.79 
D) $9219.79 
E) $9999.79 
A) $9169.79 
B) $9669.79 
C) $9119.79 
D) $9219.79 
E) $9999.79

Question 15

For a nominal interest rate of 9%,what is the compounding frequency if the periodic interest is 0.75%?

Accepted Answer

A) 8 
B) 12 
C) 6 
D) 1 
E) 24 
A) 8 
B) 12 
C) 6 
D) 1 
E) 24

Question 16

You want to retire with $370 000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years.You currently have $175 000 saved up.How much more do you have to invest in 15 years in order to achieve your goal?

Accepted Answer

A) $100 649.58 
B) $110 649.58 
C) $120 649.58 
D) $130 649.58 
E) $0.00 
A) $100 649.58 
B) $110 649.58 
C) $120 649.58 
D) $130 649.58 
E) $0.00

Question 17

Alex's property taxes are $4768.00 for his house valued at $349 900 in Whitby due on July 1 of 2014.How much discount should city give,if Alex pays his property tax 8 months in advance,when the city can earn 3% compounded monthly on the surplus fund?

Accepted Answer

i = @#IMG-DLM& = 0.0025 n = 8

Question 18

Alternative Savings offers five-year term deposits at 10% compounded annually while your credit union offers such deposits at 9.6% compounded quarterly.If you have $1000 to invest,what is the maturity value of your deposit
a)at Alternative Savings?
b)at your credit union?

Accepted Answer

a)FV = 1000.00(1.10)⁵ = 1000.00

Question 19

A loan of $8000.00 taken out two years ago is to be repaid by three equal installments due now,three years from now,and six years from now respectively.What is the size of the equal installments if interest on the debt is 7.32% p.a.compounded monthly?

Accepted Answer

Let the size of the equal paym

Question 20

The Rob U Blind Bank advertises capital savings at 7.128% compounded semi-annually while Take Your Money Trust offers premium savings at 7.1% compounded monthly.Suppose you have $4400.00 to invest for two years.
a)Which deposit will earn more interest?
b)What is the difference in the amount of interest?

Accepted Answer

a)Bank: PV = 4400.00; m = 2; i = @#IMG-DLM& = .035

A $41 200.00,non-interest-bearing note due August 1,2003,discounted on March 1,2001,at 7.32% compounded monthly.Find the proceeds.

A debt of $8125 due today is to be settled by three equal payments due three months from now,18 months from now,and 39 months from now respectively.What is the size of the equal payments at 6.8% compounded quarterly?

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years.If the assets of the credit union currently amount to $50 million,what will the forecasted assets be in ten years?

Two years after Sean deposited $5000 in a savings account that earned interest at 6% compounded monthly,the rate of interest was changed to 6.4% compounded semi-annually.How much was in the account fifteen years after the deposit was made?

Find the proceeds of a non-interest-bearing promissory note for $175 500 discounted 54 months before maturity at 9.75% compounded semi-annually.

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

A $5725.00 investment matures in three years,seven months.Find the maturity value if interest is 9.16% p.a.compounded quarterly.

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a.compounded: a)annually b)semi-annually c)quarterly d)monthly

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

Albert made investments of $1000 each for two years.The first one at an interest of 4.8% compounded monthly and the second at 4.9% compounded annually.Calculate the total value of his investment in two years.

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?

For a nominal interest rate of 9%,what is the compounding frequency if the periodic interest is 0.75%?

You want to retire with $370 000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years.You currently have $175 000 saved up.How much more do you have to invest in 15 years in order to achieve your goal?

Alex's property taxes are $4768.00 for his house valued at $349 900 in Whitby due on July 1 of 2014.How much discount should city give,if Alex pays his property tax 8 months in advance,when the city can earn 3% compounded monthly on the surplus fund?

Alternative Savings offers five-year term deposits at 10% compounded annually while your credit union offers such deposits at 9.6% compounded quarterly.If you have $1000 to invest,what is the maturity value of your deposit a)at Alternative Savings? b)at your credit union?

A loan of $8000.00 taken out two years ago is to be repaid by three equal installments due now,three years from now,and six years from now respectively.What is the size of the equal installments if interest on the debt is 7.32% p.a.compounded monthly?

Review of Arithmetic

Review of Basic Algebra

Ratio,proportion,and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, cash Discounts, markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interestfurther Topics

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, deferred Annuities, and Perpetuities

Amortization of Loans,including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

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Exam 9: Compound Interestfuture Value and Present Value

A $41 200.00,non-interest-bearing note due August 1,2003,discounted on March 1,2001,at 7.32% compounded monthly.Find the proceeds.

A debt of $8125 due today is to be settled by three equal payments due three months from now,18 months from now,and 39 months from now respectively.What is the size of the equal payments at 6.8% compounded quarterly?

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years.If the assets of the credit union currently amount to $50 million,what will the forecasted assets be in ten years?

Two years after Sean deposited $5000 in a savings account that earned interest at 6% compounded monthly,the rate of interest was changed to 6.4% compounded semi-annually.How much was in the account fifteen years after the deposit was made?

Find the proceeds of a non-interest-bearing promissory note for $175 500 discounted 54 months before maturity at 9.75% compounded semi-annually.

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

A $5725.00 investment matures in three years,seven months.Find the maturity value if interest is 9.16% p.a.compounded quarterly.

You owe $4510 due in 7 months.In addition you owe $3780 due in 13 months and $5125 due in 21 months.You are paying 8.64% compounded monthly on your loan.What single amount three months from now will pay off the entire loan of the three future payments?

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a.compounded: a)annually b)semi-annually c)quarterly d)monthly

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

Albert made investments of $1000 each for two years.The first one at an interest of 4.8% compounded monthly and the second at 4.9% compounded annually.Calculate the total value of his investment in two years.

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?

For a nominal interest rate of 9%,what is the compounding frequency if the periodic interest is 0.75%?

You want to retire with $370 000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years.You currently have $175 000 saved up.How much more do you have to invest in 15 years in order to achieve your goal?

Alex's property taxes are $4768.00 for his house valued at $349 900 in Whitby due on July 1 of 2014.How much discount should city give,if Alex pays his property tax 8 months in advance,when the city can earn 3% compounded monthly on the surplus fund?

Alternative Savings offers five-year term deposits at 10% compounded annually while your credit union offers such deposits at 9.6% compounded quarterly.If you have $1000 to invest,what is the maturity value of your deposit a)at Alternative Savings? b)at your credit union?

A loan of $8000.00 taken out two years ago is to be repaid by three equal installments due now,three years from now,and six years from now respectively.What is the size of the equal installments if interest on the debt is 7.32% p.a.compounded monthly?

Review of Arithmetic

Review of Basic Algebra

Ratio,proportion,and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, cash Discounts, markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interestfurther Topics

Ordinary Simple Annuities

Ordinary General Annuities

Annuities Due, deferred Annuities, and Perpetuities

Amortization of Loans,including Residential Mortgages

Bond Valuation and Sinking Funds

Investment Decision Applications

Filters