Melissa deposited $55,000 in an investment fund that was growing at a rate of 3.50% compounded quarterly,

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Question:

Melissa deposited $55,000 in an investment fund that was growing at a rate of 3.50% compounded quarterly, for a period of 3 years and 6 months.

a. What is the accumulated value of the investment at the end of 3 years and 6 months?

b. What is the amount of interest earned from this investment?

Heather received a loan of $56,250, 6 years ago. The interest rate charged on the loan was 4.74% compounded quarterly for the first 6 months, 5.04% compounded semi-annually for the next 3 years, and 5.73% compounded monthly thereafter.

a. Calculate the accumulated value of the loan at the end of the first 6 months.

b. Calculate the accumulated value of the loan at the end of the next 3 year period.

c. Calculate the accumulated value of the loan today.

d. Calculate the amount of interest charged on this loan over the past 6 years.

Red Company invested $20,000 in a fund that was earning interest at a rate of 6.00% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 4.50% compounded monthly.

a. What is the balance in the fund at the end of 3 years and 9 months?

b. What is the balance in the fund at the end of 6 years (from the initial investment)?

c. By what amount did the fund grow during the 6 year period?