An investment of $21700 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?

2) Betty deposited $17150.00 in an RRSP on March 1, 2010, at 6.4% compounded quarterly. Subsequently the interest rate was changed to 6.6% compounded monthly on September 1, 2012, and to 6.8% compounded semi-annually on June 1, 2014. What was the value of the RRSP deposit on December 1, 2016, if no further changes in interest were made?

3) You borrowed $1700.00 at 12.36% p.a. compounded monthly, and repaid $800.00 after three years and $950.00 after five years. How much do you owe at the end of the nine years?

4) A ten-year promissory note dated April 1, 2001, with a face value of $4700.00 bearing interest at 7.2% compounded semi-annually, discounted seven years later when money was worth 9.92% compounded monthly. Find the present value of the note at the time of discount.

5) 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? The focal date is 3 years from now.

1) 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. Focal date is five years from now.

2) Jenni started a registered retirement savings plan on January 1, 2008, with a deposit of $2000. She added $3000 on January 1, 2009, and $2000 on January 1, 2010. What is the accumulated value of her RRSP account on July 1, 2010, if interest is 12% compounded quarterly?

1) At what nominal rate of interest compounded quarterly will $2000.00 earn $400.00 interest in three years?

2) If $1400.00 accumulates to $2350.00 in five years, six months compounded semi-annually, what is the effective rate of interest?

3) If the effective rate of interest on an investment is 6.52%, what is the nominal rate of interest compounded monthly?

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?

Answer rating: 100% (QA)

1 To calculate the worth of the investment two years after the change in interest rate we need to calculate the future value of the investment after three and a half years and then calculate the futur... View the full answer