Exam 9: Compound Interest - Future Value and Present Value

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?

Sean started an RRSP on March 1, 2007, with a deposit of $2000.00. He added $1500.00 on March 1, 2008. What is the accumulated value of his account on December 1, 2008, if interest is 6% compounded quarterly?

Albert made investments of $1000 each for two years. The first one at an interest of 4.8% compounded monthly and the second at 4.9% compounded annually. Calculate the total value of his investment in two years.

You want to retire with $370 000 in the bank and you are able to earn 4.84% compounded quarterly for the next 25 years. You currently have $175 000 saved up. How much more do you have to invest in 15 years in order to achieve your goal?

Shaun wants to invest his money such that he accumulates $10 000 after 3 years at a rate of 4% compounded monthly? How much money should he invest today?

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?

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?

A $95 600.00, non-interest-bearing note due August 1, 2017, discounted on March 1, 2015, at 1.49% compounded monthly. Find the proceeds.

Find the future value of and the compound interest on $4575.00 invested at 12.24% compounded monthly for: a)3.5 years b)7 years c)12.5 years

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.

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?

Ade has to settle a debt, for which scheduled debt payments of $3800.00 was due seven months ago, $4700.00 was due two months ago, and $8800.00 due in five months. Debt has to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 4.9% p.a. compounded monthly.