Reference no: EM132905328
Question -
1. On May 11th, 2013, Joseph invested $15,000 in a fund that was growing at 4% compounded semi-annually.
a. Calculate the maturity value of the fund on November 28th, 2013.
b. On November 28th, 2013, the interest rate on the fund changed to 6% compounded monthly. Calculate the maturity value of the fund on December 17th, 2014.
2. A company currently owes $15,000 to a bank for a loan it took 5 years and 4 months ago. The interest rate charged on the loan was 4.75% compounded monthly.
a. What was the original principal of the loan?
b. What was the amount of interest charged on the loan?
3. Harris Machinery received a demand loan of $160,000. It repaid $75,000 at the end of the first year, $90,000 at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was 5.55% compounded semi-annually for the first year, 5.39% compounded quarterly for the second year, and 5.02% compounded monthly for the third year.
a. What was the balance of the loan at the end of the first year?
b. What was the balance of the loan at the end of the second year?
c. What amount at the end of the third year will settle the loan?
4. Jacqueline would like to accumulate $235,000 for his retirement in 10 years. If he is promised a rate of 3.12% compounded monthly by his local bank, how much should he invest today?
How much more or less money would you have to invest today to have $11,000 in 3 years at 5.30% compounded monthly instead of 5.46% compounded annually?
How much did Speedy Movers borrow for a debt that accumulated to $57,807.73 in three years? The interest rate was 3.48% compounded semi-annually.
5. The interest rate on a GIC is 4.83% compounded monthly. What is the purchase price of the GIC if it has a maturity value of $35,952 in 4 years and 3 months?
6. Melissa is expected to settle a loan on April 27th, 2018 by paying $5,500. What amount should he pay if he decides to settle it on June 5th, 2017 instead? The interest rate is 5.28% compounded monthly.
How much more or less money would you have to invest today to have $12,000 in 5 years at 3.50% compounded semi-annually instead of 3.54% compounded annually?