Business Mathematics Study Set 1

A 30-year, $1,000 strip bond was traded for $167, four years after it was issued. What was the semi-annually compounded nominal rate at that time?

If the population of Green City is growing at a rate of 5% per year, how long will it take to grow from 2,300 to 10,000?

Twenty years ago the population of a village in Newfoundland was 964. Now it is 612. At what average annual rate has the population of the village declined over the last 20 years?

Albert Greco paid $1,974 for a $10,000 strip bond 16 years before it reached maturity. What semi-annually compounded nominal rate will Albert earn on his investment?

A demand loan for $8,000 with interest at 16% compounded quarterly was repaid after two years and eight months. What was the amount of interest paid?

If the population of Dodge City is decreasing at a rate of 19% per year, how long will it take to decrease from 7,700 to 2,000?

At what quarterly compounded nominal interest rate will money double in 75 months?

At what annually compounded interest rate will an investment of $71,294.69 double in 90 months?

Sollozo just made a single payment to repay a loan he had with the Corleone Finance Company. He paid a total of $86,500 which included interest of $56,500 at 48% compounded monthly. How long ago was the money borrowed?

A $50,000 strip bond was discounted to $21,680. The market rate was 7.4% compounded semi-annually. How much time was left before the bond reached maturity?

Maury invested $5,000 in a selection of high-tech stocks. After six years of careful trading, his investments were worth $79,700. At what quarterly compounded nominal rate did his investments grow?

A six-year, $20,000 GIC has a maturity value of $29,625. Calculate the semi-annually compounded nominal interest rate.

At 11.4% compounded quarterly, how long will it take for money to double?

A $50,000 GIC will earn $70,000 of interest over its 10-year term. What is the monthly compounded nominal rate of interest?

The Wilsons bought their home 16 years ago for $128,000. Its value now is $141,000. At what annual rate has the value of their home appreciated since they bought it?

Rounded to the nearest month, how long will it take for $25,000 to grow to $35,000 at 9% compounded quarterly?

What amount invested at 10% compounded semiannually will be worth $6380.00 after 38 months?

Seven years before it matures the value of a $1,000 strip bond is $672. What is the semi-annually compounded nominal interest rate?

At 14% compounded annually, an investment of $50,000 will grow to $1,000,000 in 22.86 years. How much longer will it take at 11% compounded annually?

What is the term of a compound-interest Guaranteed Investment Certificate if $8,500 invested at 6.1% compounded annually will earn interest totaling $4,365.50?