MATHEMATICS OF BUSINESS AND FINANCE

(A) Timber Inc. invested profits of $145,000.00 in a GIC at 5.95% compounded semi-annually. How long would it take for the investment to grow to a value of $210,716.46?(Both years and months)

(B)The interest amount on a $68,500 loan was $119,931.49. The interest rate charged on loan was 9.20% compounded semi-annually.

1. What was the accumulated value of the loan?

2. What was the time period of the loan?(years and months)

(C) A bank charges Mammoth Inc. an interest rate of 4.75% compounded quarterly on its line of credit. If the effective interest rate increased by 0.5%, calculate the new interest rate compounded quarterly.

(D)Find the equivalent interest rates to the given nominal interest rates.

1.Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8%

2. Nominal interest rate compounded monthly that is equivalent to 8% compounded quarterly

3.Nominal interest rate compounded semi-annually that is equivalent to 5.5% compounded annually