Exam 9: Compound Interest - Future Value and Present Value

Allison started an RRSP on March 1, 2011, with a deposit of $2470.00. She added $1900.00 on December 1, 2012, and $1850.00 on September 1, 2013. What is the accumulated value of her account on December 1, 2015, if interest is 7.24% compounded quarterly?

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

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.

Find the principal that will grow to $11 019.45 at 6% compounded semi-annually in 5 years and five months.

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?

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?

Calculate the proceeds of $5000.00 due in five years, nine months discounted at 8.0% compounded semi-annually.

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

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?

A $50 000.00, 5-year note bearing interest at 3.25% compounded quarterly, discounted three and a half years after the date of issue at 2.5% compounded monthly. Find the proceeds.

Ontario passed a law in 1996 that the names of all public servants earning $100 000 or more will be published starting 1997. This year (2013), Ontario is planning to revise the amount to an equivalent purchasing power amount in 2014. What is the amount in 2014, beyond which the names of the Ontario's public servants should be published, assuming the recommended discount rate is 2.5% per year?

Calculate the proceeds of $5500.00 due in 20 years, nine months discounted at 8.0% compounded semi-annually.

An investment of $4300.00 earns interest at 9.96% p.a. compounded monthly for four years. At that time the interest rate is changed to 9% compounded semi-annually. How much will the accumulated value be two and a half years after the change?

Debts of $2800.00 due three months from now, $3500 due 15 months 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.

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?

Find the sum of money that accumulates to $11 415.00 at 7.6% compounded quarterly in six years, seven months.

Six years after Mr. Robertson deposited $7110.00 in a savings account that earned interest at 6.8% p.a., compounded semi-annually, the interest was changed to 7.2% p.a., compounded quarterly. How much was in the account ten years after the deposit was made?

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

Valeri invested $5000 at 9.25% compounded quarterly. After 18 months, the rate changed to 9.75% compounded semi-annually. What amount will Valeri have 3 years after the initial investment?

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