Exam 9: Compound Interest - Future Value and Present Value

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

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.

Romeo started an RRSP on March 1, 2016, with a deposit of $35 000.00. She added $19 000.00 on December 1, 2017, and $8500.00 on September 1, 2018. What is the accumulated value of her account on December 1, 2020, if interest is 6.6% compounded monthly?

Four years and five months after its date of issue, a 7-year promissory note for $8900.00 bearing interest at 5.04% compounded monthly is discounted at 6.5% compounded semi-annually. Find the proceeds of the note using the exact method.

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.

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?

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

Find the compound interest earned by $500 invested at 3% compounded semi-annually for ten years.

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?

Fahira invested $5000.00 at 4.8% compounded quarterly on January 1, 2012. On July 1, 2013 the rate changed to 5.6% p.a. compounded semi-annually. Calculate the amount Fahira will have on January 1, 2005.

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.

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?

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

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?

An investment of $21 700 is accumulated at 5.24% compounded quarterly for three and one-half years. At that time the interest rate is changed to 6.12% compounded monthly. How much is the investment worth two years after the change in interest rate?

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.

An investment of $30 325 is accumulated at 9.45% compounded quarterly for nine and one-half years. At that time the interest rate is changed to 9.45% compounded monthly. How much is the investment worth two years after the change in interest rate?

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.

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

An eleven-year promissory note discounted after six years at 9.2% compounded quarterly has a maturity value of $71 500. Find the proceeds.