Question 1

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 2

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

a)FV = 3000.00(1.09125)³ = 3000.00(1.2994895)= $3898.47 b)FV = 3000.00(1.02225)¹² = 3000.00(1.3022232)= $3906.67

Question 3

Darcy's parents made a trust deposit of $3500.00 on October 31,2002,to be withdrawn on Darcy's eighteenth birthday on July 31,2016.To what will the deposit amount on that date at 13.48% compounded quarterly?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 4

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 5

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 6

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 7

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 8

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 9

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,seven...

Question 10

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 11

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 12

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 13

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 14

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 15

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 16

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,three...

Question 17

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 18

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 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,eight...

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 Interestfuture Value and Present Value

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

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?

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?

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?

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

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

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?

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 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.

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?

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

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?

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

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

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%.