Question 1

You have an investment that will mature in 20 months with the value of $2500. You need some quick cash and decide to sell it today at a discount rate of 10% compounded quarterly. What is the cash value?

Accepted Answer

A)  $659.23 
B)  $2009.63 
C)  $2120.54 
D)  $2299.63 
E)  $2219.63

Question 2

A $4300.00 promissory note issued without interest for nine years on September 30, 2001, is discounted on July 31, 2006, at 8.32% compounded quarterly. Find the compound discount.

Accepted Answer

The answer of A $4300.00 promissory note issued without interest...

Question 3

You borrowed $1700.00 at 12.36% p.a. compounded monthly, and repaid $800.00 after three years and $950.00 after five years. How much do you owe at the end of the nine years?

Accepted Answer

The answer of You borrowed $1700.00 at 12.36% p.a. compounded...

Question 4

Suppose $4320.00 is invested for five years, eight months at 8.25% compounded annually. What is the compounded amount?

Accepted Answer

The answer of Suppose $4320.00 is invested for five years,...

Question 5

How much will a registered retirement savings deposit of $10000.00 be worth in 15 years at 6.00% compounded quarterly? How much of the amount is interest?

Accepted Answer

The answer of How much will a registered retirement savings...

Question 6

A three-year, $12 000 promissory note bearing interest at 11.6% compounded quarterly is discounted two years after the date of issue at 9.64% compounded semi-annually. What are the proceeds of the note?

Accepted Answer

The answer of A three-year, $12 000 promissory note bearing...

Question 7

Determine the accumulated value of $4100.00 compounded semi-annually at 8% p.a. for seven years.

Accepted Answer

The answer of Determine the accumulated value of $4100.00 compounded...

Question 8

A $5000.00, six-year note bearing interest at 8.24% compounded quarterly, discounted three and a half years after the date of issue at 6.6% compounded monthly. Find the proceeds.

Accepted Answer

The answer of A $5000.00, six-year note bearing interest at...

Question 9

A debt of $8125 due today is to be settled by three equal payments due three months from now, 18 months from now, and 39 months from now respectively. What is the size of the equal payments at 6.8% compounded quarterly?

Accepted Answer

The answer of A debt of $8125 due today is...

Question 10

A 9-month non-interest bearing promissory note is sold 2 months after it was issued. The face value of the note is $8500 and it is discounted at a rate of 5.2% compounded annually. What are the proceeds?

Accepted Answer

A)  $8252.33 
B)  $8525.33 
C)  $8255.33 
D)  $8522.33 
E)  $8552.33

Question 11

Calculate the future value of $4200 if it is invested at an interest rate of 8.6% compounded quarterly for 3 years and 10 months.

Accepted Answer

A)  $5919.75 
B)  $5891.75 
C)  $5819.75 
D)  $5875.91 
E)  $5888.75

Question 12

Six years after Ellen deposited $4500 in a savings account that earned interest at 4.68% compounded monthly, the rate of interest was changed to 6.4% compounded semi-annually. How much was in the account thirteen years after the deposit was made?

Accepted Answer

The answer of Six years after Ellen deposited $4500 in...

Question 13

Find the present value and the compound discount of $6 600.00 due in seven years, three months, if interest is 7.2% compounded quarterly.

Accepted Answer

The answer of Find the present value and the compound...

Question 14

Use the exact method to determine the accumulated value of $3875.00 due in 61 months compounded annually at 9.75% p.a.

Accepted Answer

The answer of Use the exact method to determine the...

Question 15

A debt of $5000.00 is to be repaid by payments of $2000.00 after two years, $2500.00 after three years and a final payment after five years. Determine the size of the final payment if interest is 10% p.a. compounded semi-annually.

Accepted Answer

The answer of A debt of $5000.00 is to be...

Question 16

Allison started an RRSP on March 1, 2011, with a deposit of $2470.00. She added $1900.00 on December 1, 2012, and $1850.00 on September 1, 2013. What is the accumulated value of her account on December 1, 2015, if interest is 7.24% compounded quarterly?

Accepted Answer

The answer of Allison started an RRSP on March 1,...

Question 17

Jenni started a registered retirement savings plan on January 1, 2008, with a deposit of $2000. She added $3000 on January 1, 2009, and $2000 on January 1, 2010. What is the accumulated value of her RRSP account on July 1, 2010, if interest is 12% compounded quarterly?

Accepted Answer

The answer of Jenni started a registered retirement savings plan...

Question 18

Determine the maturity value of $5400 due in 91 months compounding annually at 8.75%.

Accepted Answer

The answer of Determine the maturity value of $5400 due...

Question 19

Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded quarterly for 5 years and 6 months.

Accepted Answer

A)  $11849.59 
B)  $11809.59 
C)  $11049.59 
D)  $10849.59 
E)  $5849.59

Question 20

Four years and five months after its date of issue, a 7-year promissory note for $8900.00 bearing interest at 5.04% compounded monthly is discounted at 6.5% compounded semi-annually. Find the proceeds of the note using the exact method.

Accepted Answer

The answer of Four years and five months after its...

Exam 9: Compound Interest - Future Value and Present Value