1) Four years and five months after its date of issue, a 7-year promissory note for $8900.00 bearing interest at 5.04% compounded monthly is discounted at 6.5% compounded semi- annually. Find the proceeds of the note using the exact method. 2) Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago. and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly. 3) Janice owes two debt payments-a payment of $6700 due in twelve months and a payment of $8750 due in twenty-one months. If Janice makes a payment of $7000 now, when should she make a second payment of $7900 if money is worth 11.5% compounded semi-annually? 4) The accountant of Crystal Credit Union proposes changing the method of compounding interest on premium savings accounts to yearly compounding. If the current rate is 8% compounded quarterly, what nominal rate should the treasurer suggest to the Board of Directors to maintain the same effective rate of interest? 5) A father wants to provide an annuity of $3350.00 payable at the end of each 6 months during the three years his son attends college. It will be six years before his son goes to college. What single deposit must he make today that will finance the annuity, if he can invest his money at

1) Four years and five months after its date of issue, a 7-year promissory note for $8900.00 bearing interest at 5.04% compounded monthly is discounted at 6.5% compounded semiannually. Find the proceeds of the note using the exact method. 2) Scheduled debt payments of $1500.00 due seven months ago, $1200.00 due two months ago, and $1800.00 due in five months are to be settled by two equal payments now and three months from now respectively. Determine the size of the equal replacement payments at 9% p.a. compounded monthly. 3) Janice owes two debt payments - a payment of $6700 due in twelve months and a payment of $8750 due in twenty-one months. If Janice makes a payment of $7000 now, when should she make a second payment of $7900 if money is worth 11.5% compounded semi-annually? 17 4) The accountant of Crystal Credit Union proposes changing the method of compounding interest on premium savings accounts to yearly compounding. If the current rate is 8% compounded quarterly, what nominal rate should the treasurer suggest to the Board of Directors to maintain the same effective rate of interest? 5) A father wants to provide an annuity of $3350.00 payable at the end of each 6 months during the three years his son attends college. It will be six years before his son goes to college. What single deposit must he make today that will finance the annuity, if he can invest his money at