Question 1

Darcy's parents made a trust deposit of $3500.00 on October 31, 2002, to be withdrawn on Darcy's eighteenth birthday on July 31, 2016. To what will the deposit amount on that date at 13.48% compounded quarterly?

Accepted Answer

PV = 3500.00; i = = 0.0337 October 31, 2002 - July 31, 2016 contains 13 years, 9 months. n = 13 * 4 + 9/12 * 4 = 52 + 3 = 55 FV = 3500(1 + 0.0337)⁵⁵ = 3500(6.1901104) = 21 665.39

Question 2

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

Accepted Answer

n = = 7.5833333 FV = 5400.00(1.0875)^7.5833333= 5400.00(1.8891014) = $10 201.15

Question 3

Calculate the accumulated value of $3000.00 at 8% compounded quarterly for fifteen years. How much of the amount is interest?

Accepted Answer

PV = 3000; i =  = 2% = 0.02 ; n = 15(4) = 60; I/Y = 8; P/Y = C/Y = 4
FV = 3000  = 9843.09
Programmed solution:  Interest = 9843.09 - 3000.00 = $6843.09

Question 4

Orange Credit Union expects an average annual growth rate of 16% for the next four years. If the assets of the credit union currently amount to $2.7 million, what will the forecasted assets be in four years?

Accepted Answer

The answer of Orange Credit Union expects an average annual...

Question 5

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a. compounded:
a) annually
b) semi-annually
c) quarterly
d) monthly

Accepted Answer

The answer of To what future value will a principal...

Question 6

A $8000.00 investment matures in five years, three months. Find the maturity value if interest is 12% p.a. compounded quarterly.

Accepted Answer

The answer of A $8000.00 investment matures in five years,...

Question 7

A $5725.00 investment matures in three years, seven months. Find the maturity value if interest is 9.16% p.a. compounded quarterly.

Accepted Answer

The answer of A $5725.00 investment matures in three years,...

Question 8

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 9

Find the future value of and the compound interest on $4575.00 invested at 12.24% compounded monthly for:
a) 3.5 years
b) 7 years
c) 12.5 years

Accepted Answer

The answer of Find the future value of and the...

Question 10

Yellowknife Savings offers three-year term deposits at 9.125% compounded annually while your credit union offers such deposits at 8.9% compounded quarterly. If you have $3000 to invest, what is the maturity value of your deposit
a) at Yellowknife Savings?
b) at your credit union?

Accepted Answer

The answer of Yellowknife Savings offers three-year term deposits at...

Question 11

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 12

Find the maturity value of a promissory note for $1400.00 dated March 31, 2001, and due on August 31, 2006, if interest is 7.64% compounded quarterly.

Accepted Answer

The answer of Find the maturity value of a promissory...

Question 13

How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?

Accepted Answer

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

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

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years. If the assets of the credit union currently amount to $50 million, what will the forecasted assets be in ten years?

Accepted Answer

The answer of GBC Credit Union expects an average annual...

Question 16

How much will a registered retirement savings deposit of $10 000.00 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 17

An investment of $21 700 is accumulated at 5.24% compounded quarterly for three and one-half years. At that time the interest rate is changed to 6.12% compounded monthly. How much is the investment worth two years after the change in interest rate?

Accepted Answer

The answer of An investment of $21 700 is accumulated...

Question 18

Find the compound amount of $5700.00 at 11.2% p.a. for seven years compounded monthly.

Accepted Answer

The answer of Find the compound amount of $5700.00 at...

Question 19

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 20

Determine the maturity value of $2000 due in 63 months compounding annually at 10%.

Accepted Answer

The answer of Determine the maturity value of $2000 due...

Quiz 9: Compound Interest - Future Value and Present Value

Darcy's parents made a trust deposit of $3500.00 on October 31, 2002, to be withdrawn on Darcy's eighteenth birthday on July 31, 2016. To what will the deposit amount on that date at 13.48% compounded quarterly?

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

Calculate the accumulated value of $3000.00 at 8% compounded quarterly for fifteen years. How much of the amount is interest?

Orange Credit Union expects an average annual growth rate of 16% for the next four years. If the assets of the credit union currently amount to $2.7 million, what will the forecasted assets be in four years?

To what future value will a principal of $7100.00 amount in three years at 7.6% p.a. compounded: a) annually b) semi-annually c) quarterly d) monthly

A $8000.00 investment matures in five years, three months. Find the maturity value if interest is 12% p.a. compounded quarterly.

A $5725.00 investment matures in three years, seven months. Find the maturity value if interest is 9.16% p.a. compounded quarterly.

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

Find the future value of and the compound interest on $4575.00 invested at 12.24% compounded monthly for: a) 3.5 years b) 7 years c) 12.5 years

Yellowknife Savings offers three-year term deposits at 9.125% compounded annually while your credit union offers such deposits at 8.9% compounded quarterly. If you have $3000 to invest, what is the maturity value of your deposit a) at Yellowknife Savings? b) at your credit union?

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

Find the maturity value of a promissory note for $1400.00 dated March 31, 2001, and due on August 31, 2006, if interest is 7.64% compounded quarterly.

How much will a registered retirement savings deposit of $13 500.00 be worth in 11 years at 8.44% compounded quarterly? How much of the amount is interest?

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

GBC Credit Union expects an average annual growth rate of 10% for the next 10 years. If the assets of the credit union currently amount to $50 million, what will the forecasted assets be in ten years?

How much will a registered retirement savings deposit of $10 000.00 be worth in 15 years at 6.00% compounded quarterly? How much of the amount is interest?

An investment of $21 700 is accumulated at 5.24% compounded quarterly for three and one-half years. At that time the interest rate is changed to 6.12% compounded monthly. How much is the investment worth two years after the change in interest rate?

Find the compound amount of $5700.00 at 11.2% p.a. for seven years compounded monthly.

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

Determine the maturity value of $2000 due in 63 months compounding annually at 10%.