1. A payment of $12,550 is due in 2 year, $15,500 is due in 5 years, and $8,900 is due in 6 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.50% compounded monthly.

Round to the nearest cent

2. Calculate the present value for the following.

Round the answers to the nearest cent

	Present Value	Nominal Interest Rate	Compounding Frequency	Time in Years	Future Value
1.		5.75%	quarterly	3	$10,600
2.		3.50%	semi-annually	17	$18,000
3.		4.50%	monthly	9	$14,400
4.		4.25%	annually	11	$22,500

3. On July 9th, 2013, Joseph invested $15,000 in a fund that was growing at 3% compounded semi-annually.

a. Calculate the accumulated amount of the fund on February 20th, 2014.

Round to the nearest cent

b. On February 20th, 2014, the interest rate on the fund changed to 6% compounded monthly. Calculate the accumulated amount of the fund on December 28th, 2014.

Round to the nearest cent

4. Derek deposited $20,000 in an investment fund that was growing at a rate of 5.00% compounded quarterly, for a period of 5 years and 6 months.

a. What is the accumulated value of the investment at the end of 5 years and 6 months?

Round to the nearest cent

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

Round to the nearest cent

5. Calculate the rate of simple interest per annum offered on savings of $2,300.00 if interest earned is $128.00 over a period of 9 months.

%

Round to two decimal places.