Question 1

A debt can be repaid by payments of $1000.00 today, and $3000.00 in two years. What single payment would settle the debt three years from now if money is worth 16% p.a. compounded semi-annually?

Accepted Answer

The answer of A debt can be repaid by payments...

Question 2

Debts of $2800.00 due three months from now and $4600.00 due twenty-one months from now are to be settled by two equal payments due in three months and nine months from now respectively. Determine the size of the equal replacement payments if interest is 5.5% p.a. compounded quarterly.

Accepted Answer

The answer of Debts of $2800.00 due three months from...

Question 3

Calculate the proceeds of $5000.00 due in five years, nine months discounted at 8.0% compounded semi-annually.

Accepted Answer

The answer of Calculate the proceeds of $5000.00 due in...

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 seven-year promissory note for $31 000 dated May 2, 2002, bearing interest at 8% compounded quarterly, is discounted on September 2, 2005, at 8.5% compounded semi-annually. Determine the proceeds of the note.

Accepted Answer

The answer of An seven-year promissory note for $31 000...

Question 6

A ten-year note for $2220.00 bearing interest at 6.6% compounded monthly is discounted at 8.92% compounded quarterly four years and four months before maturity. Find the proceeds of the note.

Accepted Answer

The answer of A ten-year note for $2220.00 bearing interest...

Question 7

A note dated May 1, 2011 promises the payment of $5660.00 with interest at 6.5% p.a. compounded semi-annually on November 1, 2015. Find the proceeds of the sale of the note on May 1, 2013 if money was then worth 7.2% p.a. compounded monthly.

Accepted Answer

The answer of A note dated May 1, 2011 promises...

Question 8

Debts of $400.00, $450.00 and $500.00 are due in one year, eighteen months and thirty months from now respectively. Determine the single payment now that would settle the debts if interest is 8% p.a. compounded quarterly.

Accepted Answer

The answer of Debts of $400.00, $450.00 and $500.00 are...

Question 9

A twenty-year note for $10 000.00 bearing interest at 12% compounded monthly is discounted at 8% compounded quarterly four years and six months before maturity. Find the proceeds of the note.

Accepted Answer

The answer of A twenty-year note for $10 000.00 bearing...

Question 10

Loans of $1600.00, $8300.00, and $12 100.00 are due now, in four years, and in seven years respectively. What is the equivalent single sum of money due three and a half years from now if interest is 10.8% compounded monthly?

Accepted Answer

The answer of Loans of $1600.00, $8300.00, and $12 100.00...

Question 11

On April 15, 2005, a ten-year note dated June 15, 2001, is discounted at 8.2% compounded quarterly. If the face value of the note is $4000.00 and interest is 7.2% compounded quarterly, find the compound discount.

Accepted Answer

The answer of On April 15, 2005, a ten-year note...

Question 12

Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly.

Accepted Answer

The answer of Scheduled debt payments of $1500.00 due seven...

Question 13

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...

Question 14

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 15

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 16

Debts of $850 due in six months, $700 due in sixteen months, and $1100 due in three years are to be settled by a single payment one year from now. What is the size of that single payment if interest is 7.5% compounded monthly?

Accepted Answer

The answer of Debts of $850 due in six months,...

Question 17

Use the exact method to compute the proceeds of a non-interest-bearing note for $5640.00 six years and seven months before the due date, if money is worth 7.25% p.a. compounded annually.

Accepted Answer

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

Question 18

A debt payment in the amount of $2000.00 due today, is to be settled by a payment of $1500.00 nine months from now and a final payment in 18 months. Determine the size of the final payment if the money is worth 12% p.a. compounded quarterly. Use the Banker's Method.

Accepted Answer

The answer of A debt payment in the amount of...

Question 19

A debt can be repaid by payments of $4125.00 today, $3770.00 in two years and $5600.00 in five years. What single payment would settle the debt three years from now if money is worth 9.88% p.a. compounded quarterly?

Accepted Answer