1. An investment of $18,000 was growing at 6.25% compounded quarterly.

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

Round to the nearest cent

b.If the interest rate changed to 6.5% compounded monthly at the end of year 1, calculate the maturity value of this investment at the end of year 5.

Round to the nearest cent

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

Round to the nearest cent

2.Calculate the future value of each of the following investments.

Round the answers to the nearest cent

Present Value Nominal Interest Rate Compounding Frequency Number of Compounding Periods FutureValue

1.$21,400 4.25% Annually 12 ?

2.$34,100 2.25% Semi-annually 24 ?

3.$14,000 5.50% Quarterly 36 ?

4.$39,250 3.75% Monthly 48 ?

3.Robert is expected to settle a loan on January 1st, 2018 by paying $8,000. What amount should she pay if she decides to settle it on April 30th, 2017 instead? The interest rate is 5.37% compounded semi-annually.

Round to the nearest cent

4.On August 25th, 2013, Joseph invested $15,000 in a fund that was growing at 6% compounded quarterly.

a.Calculate the maturity value of the fund on March 28th, 2014.

Round to the nearest cent

b.On March 28th, 2014, the interest rate on the fund changed to 7% compounded monthly. Calculate the maturity value of the fund on March 14th, 2015.

Round to the nearest cent

5.An investment that has a maturity value of $3,000 and is discounted 4 years and 6 months before maturity at 3.60% compounded semi-annually.

a.Calculate the discounted value of the investment.

Round to the nearest cent

b.Calculate the amount by which the money is discounted.

Round to the nearest cent

6.Garrett would like to accumulate $445,000 for her retirement in 9 years. If she is promised a rate of 3.48% compounded semi-annually by her local bank, how much should she invest today?

Round to the nearest cent