1.An investment of $17,000 was growing at 5.5% compounded semi-annually.

a. Calculate the accumulated value of this investment at the end of year 1.

b. If the interest rate changed to 6% compounded monthly at the end of year 1, calculate the accumulated value of this investment at the end of year 5.

c. Calculate the amount of interest earned from this investment during the 5-year period.

2.

Calculate the future value of each of the following investments.

	Present Value	Nominal Interest Rate	Compounding Frequency	Number of Compounding Periods	Future Value
1.	$21,400	3.50%	Annually	12
2.	$36,500	2.50%	Semi-annually	24
3.	$14,500	5.75%	Quarterly	36
4.	$33,250	2.75%	Monthly	48

3.Alexander is expected to settle a loan on May 15th, 2019 by paying $8,000. What amount should she pay if she decides to settle it on June 13th, 2018 instead? The interest rate is 4.99% compounded monthly.

4. On June 2nd, 2013, Joseph invested $16,000 in a fund that was growing at 4% compounded quarterly.

a. Calculate the maturity value of the fund on February 2nd, 2014.

b. On February 2nd, 2014, the interest rate on the fund changed to 3% compounded monthly. Calculate the maturity value of the fund on December 24th, 2014.

5. A company currently owes $25,000 to a bank for a loan it took 4 years and 9 months ago. The interest rate charged on the loan was 5.75% compounded monthly.

a. What was the original principal of the loan?

b. What was the amount of interest charged on the loan?

6. If you want to have a million dollars 32 years from today, how much should you invest in your savings account that earns interest of 5.06% compounded monthly?