Exam 10: Compound Interest - Further Topics

Moriaty owes two debt payments-a payment of $6.7 million due in twelve months and a payment of $8.75 million due in twenty-one months. If Moriaty makes a payment of $7 million now, when should he make a second payment of $7.9 million if money is worth 11.5% compounded semi-annually?

A principal of $4250.00 compounded monthly amounts to $4800.00 in 6.25 years. What is the nominal annual rate of interest?

In how many years will money double at 6.62% compounded semi-annually?

A loan of $4500.00 was repaid together with interest of $1164.00. If interest was 12 .4% compounded quarterly, for how many months was the loan taken out?

If the effective rate of interest on an investment is 7%, what is the nominal rate of interest compounded quarterly?

A five-year, $2000.00 note bearing interest at 10% compounded annually was discounted at 12% compounded semi-annually yielding proceeds of $1900.00. How many months before the due date was the discount date?

If $1400.00 accumulates to $2350.00 in five years, six months compounded semi-annually, what is the effective rate of interest?

A promissory note for $3600.00 dated May 15, 2012, requires an interest payment of $370.00 at maturity. If interest is at 9.6% compounded monthly, determine the due date of the note.

Find the equated date at which two payments of $1600.00 due six months ago and $1850.00 due today could be settled by a payment of $4300.00 if interest is 9.48% compounded monthly.

How long did it take for $1635 to increase to $2310 if the investment earned interest at a rate of 8.08% compounded quarterly (give your final answer in years and months, e.g., 3 years and 7.23 months)?

What is the nominal rate of interest at which money will be 10 times itself in 30 years, if compounded monthly?

A financial obligation requires the payment of $25 000.00 in 12 months, $35 000.00 in 18 months, and $30 000.00 in 30 months. When can the obligation be discharged by a single payment of $83 000.00 if interest is 6.5% compounded semi-annually?

Calculate the number of years for money to triple at 3.6% p.a. compounded monthly.

What is the monthly discount rate expressed as an nominal annual rate for a future value of $182 500 to be reduced to $178 663.58 over a period of 4.25 years?

According to the World Bank, the population in Georgia is decreasing by 0.83% per year. According to the 2011 consensus, the population of Georgia is 4.5 million. Assuming the population growth rate remains the same; calculate the year in which the population of Georgia will be half the population in 2011?

The PC financial is considering changing the method of compounding interest on line of credit accounts to daily compounding. If the current rate is 5.75% compounded quarterly, what nominal rate should PC Financial propose to maintain the same effective rate of interest?

A promissory note for $7200.00 dated May 15, 2016, requires an interest payment of $740.00 at maturity. If interest is at 9.6% compounded monthly, determine the due date of the note.

What is the nominal rate of interest compounded semi-annually which is equivalent to an effective rate of 5.89%?

A loan of $15 000.00 was repaid together with interest of $1089.00. If interest was 5% compounded quarterly, how long was the loan taken out? (Answers are rounded off to years and months)

Calculate the effective annual rate for 10% p.a. compounded quarterly.