Exam 10: Compound Interest - Further Topics

How many compounding periods does it take for a non-interest bearing bond of $420150 to be reduced to $199989 at a discount rate of 5.44% compounded monthly?

A financial obligation requires payments of $2000.00 today, $2500.00 in three years, and $3000.00 in five years. When can the obligation be discharged by a single payment equal to the sum of the required payments if interest is 6%p.a. compounded monthly?

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?

You have an interest rate of 8.44% compounded quarterly. What is the equivalent effective annual interest rate?

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

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.

A principal of $5000.00 compounded monthly amounts to $6000.00 in 7 years. What is the nominal annual rate of interest?

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

Luciano sold a property and is to receive $14200.00 in nine months, $14000.00 in 42 months, and $15500.00 in 57 months. The deal was renegotiated after six months at which time Luciano received a payment of $17000.00; he was to receive a further payment of $19000.00 later. When should Luciano receive the second payment if money is worth 10% compounded quarterly?

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)

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.

The treasurer of Lynn Lake Credit Union proposes changing the method of compounding interest on premium savings accounts to daily compounding. If the current rate is 4% compounded quarterly, what nominal rate should the treasurer suggest to the Board of Directors to maintain the same effective rate of interest?

A five-year, $4500.00 promissory note with interest at 7.5% compounded semi-annually was discounted at 8% compounded quarterly yielding proceeds of $6150.00. How many months before the due date was the discount date?