Exam 10: Compound Interestfurther Topics

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?

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?

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?

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

Which is the most attractive of the following interest rates offered on a savings account?

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?

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?

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)

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?

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

How long,in compounding periods,will it take for $3327 to increase by $3799 if you are able to earn 6.2% compounded semi-annually?

A 11-year $8000.00 promissory note,with interest at 8.4% compounded monthly,is discounted at 6.5% compounded semi-annually yielding proceeds of $14 631.15.How many months before the due date was the date of discount?

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?

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

In how many months will money double at 7.45% compounded semi-annually?

The Brick store credit card quotes a rate of 1.75% per month on the unpaid balance.When Leons took over Brick's management,they reduced the card's effective rate by 4%.What will be the new periodic rate per month?

Calculate the nominal rate of interest p.a.compounded semi-annually if $5000.00 accumulates to $7002.64 in 78 months.

Calculate the nominal rate of interest compounded semi-annually that is equivalent to 8.4% compounded monthly.

BlackBerry took a loan contract which requires a payment of $40 million plus interest two years after the contract's date of issue.The interest rate on the $40 million face value is 9.6% compounded quarterly.Before the maturity date,the original lender sold the contract to a pension fund for $43 million.The sale price was based on a discount rate of 8.5% compounded semi-annually from the date of sale.How many months before the maturity date did the sale take place?

Sajid invested $20 000 in strip bonds earning him $2536.50 in one year.What is the nominal annual rate of interest compounded monthly?