Question 1

Find i if an amount is invested at 6.00% compounded every 3 months.

Accepted Answer

A) 3.00% 
B) 2.00% 
C) 6.00% 
D) 1.50% 
E) 0.02 
A) 3.00% 
B) 2.00% 
C) 6.00% 
D) 1.50% 
E) 0.02

Question 2

A $100 000 face value strip bond has 6 years remaining until maturity.If the current market return rate is 4% compounded semi-annually,what is the fair market value of the strip bond?

Accepted Answer

A) $78 849 
B) $79 031 
C) $88 797 
D) $100 000 
E) $126 824 
A) $78 849 
B) $79 031 
C) $88 797 
D) $100 000 
E) $126 824

Question 3

A seven-year,non-interest-bearing note for $6532.00 is discounted three years and two months before its due date at 9.12% compounded quarterly.Find the proceeds of the note.

Accepted Answer

n = (3 + @#IMG-DLM& )4 = 12.66

Question 4

A debt of $5000.00 is to be repaid by payments of $2000.00 after two years,$2500.00 after three years and a final payment after five years.Determine the size of the final payment if interest is 10% p.a.compounded semi-annually.

Accepted Answer

Let the final payment be $x and the foca

Question 5

An investment of $2500.00 accumulates interest at 9.25% compounded quarterly.After 18 months the rate changed to 9.75% compounded semi-annually.Calculate the accumulated value three years after the initial investment.

Accepted Answer

Step 1 PV = 2500.00; i = @#IMG-DLM& = 2.3125% = 0.

Question 6

Determine the discounted value now of $7700.00 due in forty-four months at 7.5% compounded quarterly.

Accepted Answer

n = @#IMG-DLM& = 14.6666667 PV

Question 7

Find the principal which will grow to $7258.00 at 6.58% compounded semi-annually in four years and five months.

Accepted Answer

n = (4 + @#IMG-DLM& )2 = @#IMG-DLM& = 8.

Find i if an amount is invested at 6.00% compounded every 3 months.

A $100 000 face value strip bond has 6 years remaining until maturity.If the current market return rate is 4% compounded semi-annually,what is the fair market value of the strip bond?

A seven-year,non-interest-bearing note for $6532.00 is discounted three years and two months before its due date at 9.12% compounded quarterly.Find the proceeds of the note.

A debt of $5000.00 is to be repaid by payments of $2000.00 after two years,$2500.00 after three years and a final payment after five years.Determine the size of the final payment if interest is 10% p.a.compounded semi-annually.

An investment of $2500.00 accumulates interest at 9.25% compounded quarterly.After 18 months the rate changed to 9.75% compounded semi-annually.Calculate the accumulated value three years after the initial investment.

Determine the discounted value now of $7700.00 due in forty-four months at 7.5% compounded quarterly.

Find the principal which will grow to $7258.00 at 6.58% compounded semi-annually in four years and five months.

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

Exam 9: Compound Interestfuture Value and Present Value

Find i if an amount is invested at 6.00% compounded every 3 months.

A $100 000 face value strip bond has 6 years remaining until maturity.If the current market return rate is 4% compounded semi-annually,what is the fair market value of the strip bond?

A seven-year,non-interest-bearing note for $6532.00 is discounted three years and two months before its due date at 9.12% compounded quarterly.Find the proceeds of the note.

A debt of $5000.00 is to be repaid by payments of $2000.00 after two years,$2500.00 after three years and a final payment after five years.Determine the size of the final payment if interest is 10% p.a.compounded semi-annually.

An investment of $2500.00 accumulates interest at 9.25% compounded quarterly.After 18 months the rate changed to 9.75% compounded semi-annually.Calculate the accumulated value three years after the initial investment.

Determine the discounted value now of $7700.00 due in forty-four months at 7.5% compounded quarterly.

Find the principal which will grow to $7258.00 at 6.58% compounded semi-annually in four years and five months.

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