# Business Mathematics Study Set 1

Mathematics

## Quiz 8 :Compound Interest: Future Value and Present Value

Question Type
What principal earning 16% compounded quarterly will grow to $8,500 after six years and three months? Free Multiple Choice Answer: Answer: C Tags Choose question tag Calculate the present value of a payment of$27,500 payable in 10 years if money is worth 9% compounded semi-annually.
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Laurel borrowed some money from Hardy 42 months ago. The loan principal plus interest at 17% compounded annually is to be repaid today. Laurel and Hardy agree that the total amount due is $31,618. How much did Laurel borrow from Hardy 42 months ago? Free Multiple Choice Answer: Answer: C Tags Choose question tag Calculate the maturity value of$18,559 after 7.5 years at 9% compounded quarterly.
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Boris borrowed $500 five years ago. The interest rate on the loan was 9% compounded monthly for the first 27 months and 6% compounded quarterly for the rest of the time. How much does he owe now? Multiple Choice Answer: Tags Choose question tag What amount was invested 35 years ago at 7% compounded semi-annually if the value of the investment has now grown to$1,000,000?
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If you deposit $2,500 into an investment that grows at 13.2% compounded monthly, what will its value be in 17.5 years? Multiple Choice Answer: Tags Choose question tag Money is worth 5% compounded semi-annually. What is the value today of a contract that will bring in a payment of$86,500 in nine years?
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Helen's investment of $500 has grown, at a rate of 13% compounded annually, for 45 years. What is the maturity value of her investment? Multiple Choice Answer: Tags Choose question tag A nine-year,$270,000 promissory note bears interest at a rate of 8% compounded annually. What is its maturity value?
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What amount today is equivalent to $6,800 three years ago, if money earned 12% compounded quarterly over the past three years? Multiple Choice Answer: Tags Choose question tag Betty borrowed$50 from Chuckie for 2 years at 9% compounded monthly. How much did she owe at the end of the two years?
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Everyone thought he was being foolish again when, 65 years ago, great-great-uncle Crazy Louie invested $150 in the common stock of a company that produced a carbonated soft drink in Atlanta Georgia. The value of the stock has grown at an average rate of 15% compounded semi-annually. What's the value of Crazy Louie's foolish investment now? Multiple Choice Answer: Tags Choose question tag Murphy's annual income has increased by 10% per year for the last 8 years. If Murphy's annual income is now$72,596, what was it 8 years ago?
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Consider a graph of future values of two investments of $1000. How would you expect the graphs of the future values to look if both investment 1 earns 15% compounded annually, and investment 2 earns 10% compounded annually? Multiple Choice Answer: Tags Choose question tag What is the maturity value of a$3,500 loan for 15 months at 12% compounded quarterly?
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If Smitty is able to earn 11% compounded semi-annually on his $750 investment, how much money will he have in 40 years? Multiple Choice Answer: Tags Choose question tag Consider a graph of future values of two investments of$1000. How would you expect the graphs of the future values to look if both investments earn 5% nominal rate, but investment 1 is compounded monthly and investment 2 is compounded semi-annually?
How much money would have to be invested today, at 9% compounded monthly in order to have $40,000 in seven years? Multiple Choice Answer: Tags Choose question tag Twenty years ago Freddie invested$2,000. For the first 10 years he earned 13% compounded semi-annually. For the next 10 years he earned 8% compounded quarterly. What was the value of the investment now, at the end of the 20 years?