Question 1

Find i if an amount is invested at 6.00% compounded every 3 months.

Accepted Answer

A) 3.00% 
B) 2.00% 
C) 6.00% 
D) 1.50% 
E) 0.02

Question 2

A $100 000 face value strip bond has 6 years remaining until maturity.If the current market return rate is 4% compounded semi-annually,what is the fair market value of the strip bond?

Accepted Answer

A) $78 849 
B) $79 031 
C) $88 797 
D) $100 000 
E) $126 824

Question 3

A seven-year,non-interest-bearing note for $6532.00 is discounted three years and two months before its due date at 9.12% compounded quarterly.Find the proceeds of the note.

Accepted Answer

The answer of A seven-year,non-interest-bearing note for $6532.00 is discounted...

Question 4

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 5

An investment of $2500.00 accumulates interest at 9.25% compounded quarterly.After 18 months the rate changed to 9.75% compounded semi-annually.Calculate the accumulated value three years after the initial investment.

Accepted Answer

The answer of An investment of $2500.00 accumulates interest at...

Question 6

Determine the discounted value now of $7700.00 due in forty-four months at 7.5% compounded quarterly.

Accepted Answer

The answer of Determine the discounted value now of $7700.00...

Question 7

Find the principal which will grow to $7258.00 at 6.58% compounded semi-annually in four years and five months.

Accepted Answer

The answer of Find the principal which will grow to...

Exam 9: Compound Interestfuture Value and Present Value