Exam 10: Compound Interest - Further Topics

The Brick store credit card quotes a rate of 1.75% per month on the unpaid balance. Calculate the effective rate of interest being charged.

What is the nominal rate of interest compounded semi-annually that is equivalent to an effective rate of 8.25%

Determine the effective rate of interest corresponding to 6% p.a. compounded monthly

Janice owes two debt payments-a payment of $6700 due in twelve months and a payment of $8750 due in twenty-one months. If Janice makes a payment of $7000 now, when should she make a second payment of $7900 if money is worth 11.5% compounded semi-annually?

At what nominal rate of interest compounded semi-annually will $5900 earn $6400 interest in six years?

How many compounding periods does it take for a non-interest bearing bond of $420 150 to be reduced to $199 989 at a discount rate of 5.44% compounded monthly?

How long will it take an investment to double in value if it earns 6% compounded quarterly? Include accrued interest and round the answer to the nearest month

At what nominal rate of interest compounded quarterly will $2000.00 earn $400.00 interest in three years?

Luciano sold a property and is to receive $14 200.00 in nine months, $14 000.00 in 42 months, and $15 500.00 in 57 months. The deal was renegotiated after six months at which time Luciano received a payment of $17 000.00; he was to receive a further payment of $19 000.00 later. When should Luciano receive the second payment if money is worth 10% compounded quarterly?

Musa's parents deposited $20,000 in a long-term savings account as a wedding expenditure for their grand daughter at her birth, expecting to triple by the time she gets married at the age of 22. Calculate the rate of return compounded monthly for the savings account.

At what nominal rate of interest compounded quarterly will $8100 earn $1700.00 interest in six years?

In how many years will money triple at 6.4% compounded monthly?

What nominal rate of interest-compounded quarterly will have to be earned on a savings account for it to grow from $1525 to $1955 over a period of 21 months?

The accountant of Crystal Credit Union proposes changing the method of compounding interest on premium savings accounts to yearly compounding. If the current rate is 8% compounded quarterly, what nominal rate should the treasurer suggest to the Board of Directors to maintain the same effective rate of interest?

A financial obligation requires the payment of $250.00 in eighteen months, $350.00 in thirty months, and $300.00 in fifty-four months. When can the obligation be discharged by a single payment of $800.00 if interest is 5% compounded semi-annually?

What is the nominal rate of interest at which money will be 5 times itself in 20 years and six months if compounded semi-annually?

A loan of $9000.00 was repaid together with interest of $3728.00. If interest was 9.4% compounded quarterly, how long was the loan taken out? (Give answer in years and months to the nearest tenth.)

At what nominal rate of interest compounded monthly will $1700.00 earn $500.00 interest in three years?

A six-year, $1650.00 note bearing interest at 9.51% compounded annually was discounted at 11.2% compounded semi-annually yielding proceeds of $1916.75. How many months before the due date was the discount date?

What is the quarterly interest rate that you will need to earn in order for an investment of $1635 to grow to be $1748.73 after 2.25 years?