1. A non-interest-bearing seven-year note for $4400.00 issued December 1, 2016, is discounted July 1,

2021, at 2.8% compounded semi-annually. Find the compound discount

(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

2. Find the future value of and the compound interest on

$600 invested at 6.6% compounded semi-annually

for parts (a) through (c).

(a)6 years(b) 9.5 years(c) 14 years

a) The accumulated value is

$

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The interest is

$

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(b) The accumulated value is

$.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The interest is

$.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(c) The accumulated value is

$.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The interest is

$

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

3. You have the choice of receiving $120,000 now, or $52,000 now and another $84,000 five

years from now. In terms of today's dollar, which choice is better and by howmuch? Money is worth

4% compounded annually.

Which choice is better?

A.

The choice of

$52,000nowand$84,000infiveyears

is better.

B.

They are equal in value.

C.

The choice of

$120,000now

is better.

The better choice is greater than the alternative choice by

$ ? in terms of today's dollar.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

4. What is the principal that will grow to $2800 in four years, eight months at 9.8% compounded

quarterly?

Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

5.

A demand loan of $7000.00 is repaid by payments of

$3500.00 after two years, $3500.00 after four

years, and a final payment after seven years. Interest is 7% compounded monthly for the first two years, 8%

compounded quarterly for the next two years, and 8% compounded annually

thereafter. What is the size of the finalpayment?

Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)