Exam 9: Compound Interestfuture Value and Present Value

How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?

You have an investment that will mature in 33 months and have a value of $4300.You need some quick cash and decide to sell today at a discount rate of 8.2% compounded quarterly.What is the cash value?

Scheduled debt payments of $1500.00 due seven months ago,$1200.00 due two months ago,and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively.Determine the size of the equal replacement payments at 9% p.a.compounded monthly.

Ontario's recommended discount rate is 2.5% per year,which is the same as rate of inflation in Ontario.What annual income will be needed 17 years from now,to have the same purchasing power as a $134 000 annual income today?

Two debt payments,the first in the amount of $1600.00 due today,and the second in the amount of $7200.00 due in 15 months with interest at 9.6% p.a.compounded quarterly,are to be settled by a payment of $3400.00 nine months from now and a final payment in 21 months.Determine the size of the final payment if the money is worth 12.12% p.a.compounded monthly.

Compute the discounted value of $5125.00 due in three years,eight months if money is worth 8.24% compounded quarterly.

What sum of money invested at 5.95% p.a.,compounded semi-annually,will grow to $28 000.00 in 19.5 years?

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

Debt payments of $1400.00 due today,$5100.00 due in twenty-one months,and $1900.00 due in 4.5 years are to be combined into a single payment due three years from now.What is the size of the single payment if interest is 8.04% p.a.compounded quarterly?

Calculate the present value of $12 500.00 due in two years and nine months if interest is 7.8% p.a.compounded semi-annually.

On April 15,2005,a ten-year note dated June 15,2001,is discounted at 8.2% compounded quarterly.If the face value of the note is $4000.00 and interest is 7.2% compounded quarterly,find the compound discount.

An investment of $5000.00 earns interest at 6% p.a.compounded monthly for two years.At that time the interest rate is changed to 8% compounded semi-annually.How much will the accumulated value be three and a half years after the change?

You invest $6780 in a floating rate guaranteed investment certificate.For the first 30 months you earn 4.9% compounded semi-annually.For the next 8 months you earn 4.32% compounded monthly.What is the maturity value of the certificate?

An seven-year promissory note for $31 000 dated May 2,2002,bearing interest at 8% compounded quarterly,is discounted on September 2,2005,at 8.5% compounded semi-annually.Determine the proceeds of the note.

A $17 200 debt will accumulate for six years at 11.6% compounded semi-annually.For how much will the debt sell four years after it was incurred if the buyer of the debt charges 9% compounded quarterly?

Two payments of $10 000 each must be made one year and four years from now.If money can earn 9% compounded monthly,what single payment two years from now would be equivalent to the two scheduled payments?

A debt payment in the amount of $2000.00 due today,is to be settled by a payment of $1500.00 nine months from now and a final payment in 18 months.Determine the size of the final payment if the money is worth 12% p.a.compounded quarterly.Use the Banker's Method.

You have an investment that will mature in 20 months with the value of $2500.You need some quick cash and decide to sell it today at a discount rate of 10% compounded quarterly.What is the cash value?

How much would you have to deposit in an account today to have $37 000.00 in a three-year term deposit at maturity if interest is 7.775% compounded annually?

What is the cash value of $5000 if it is discounted for 5 years at 10% compounded yearly?