Exam 9: Compound Interestfuture Value and Present Value

A ten-year promissory note dated April 1,2001,with a face value of $4700.00 bearing interest at 7.2% compounded semi-annually,discounted seven years later when money was worth 9.92% compounded monthly.Find the proceeds.

A $5000.00,six-year note bearing interest at 8.24% compounded quarterly,discounted three and a half years after the date of issue at 6.6% compounded monthly.Find the proceeds.

Determine the proceeds of $19 000 three years and three months before the due date if interest is 7.6% compounded semi-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?

A ten-year promissory note discounted after seven years at 10% compounded quarterly has a maturity value of $40 000.Find the proceeds.

Accumulated $1720.00 at 8.4% p.a.compounded monthly from March 1,2011,to July 1,2013,and thereafter at 8.88% p.a.compounded quarterly.What is the amount on April 1,2015?

You have an investment that will mature for $6825 in 57 months.You sell the investment 21 months before maturity.The discount rates used are 5.6% compounded quarterly for the first nine months of the discount period (from the date of maturity)and then 4.92% compounded monthly for the remaining discount period.How much did you sell the investment for?

What periodic payment does Imran receive from a $100 000,3-year,monthly payment GIC earning a nominal rate of 2.25% payable monthly?

Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded quarterly for 5 years and 6 months.

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.

Nader makes semi-annual payments of $3000 to pay off his loan.Because of unemployment,he defaulted on his last two payments.What total payment is he expected to make during his third payment,if the defaulted payments are compounded monthly at a rate of 6%?

What sum of money will grow to $23 000.00 in seven years at 9.612% compounded monthly?

Zara borrowed $4000 from Duca financial at an interest rate of 7% compounded semiannually.The loan is to be repaid in 3 equal payments in two years,three and five years,respectively.How much will be each payment?

What sum of money invested at 8% p.a.,compounded quarterly,will grow to $10 000.00 in 12.5 years?

Calculate the accumulated value of $3000.00 at 8% compounded quarterly for fifteen years.How much of the amount is interest?

Use the exact method to determine the accumulated value of $3875.00 due in 61 months compounded annually at 9.75% p.a.

An obligation of $5150.00 due in 2.5 years is to be settled by four equal payments due today,nine months from now,21 months from now,and 27 months from now,respectively.What is the size of the equal payment at 8.88% p.a.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 4 years from now would be equivalent to the two scheduled payments?

Find the present value and the compound discount of $6 600.00 due in seven years,three months,if interest is 7.2% compounded quarterly.

You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years.How much money do you have to invest today in order to achieve your goal?