Unit 6 Exercises Chapter 9: Section 9.1 (B) 4. For a sum of money borrowed at 16%
Question:
Unit 6 Exercises Chapter 9: Section 9.1 (B) 4. For a sum of money borrowed at 16% compounded daily for 2 years, state (a) the nominal annual rate of interest (j); (b) the number of compounding interest periods per year (m); (c) the periodic rate of interest (i); (d) the number of compounding periods in the term (n); (e) the compounding factor (1 + i) n ; (f) the numerical value of the compounding factor. Chapter 9: Section 9.2 8. Peel Credit Union expects an average annual growth rate of 8% for the next five years. If the assets of the credit union currently amount to $2.5 million, what will the forecasted assets be in five years? Chapter 9: Section 9.3 6. How much would you have to deposit in an account today to have $3000 in a five-year term deposit at maturity if interest is 7.75% compounded annually? 10. Compute the discounted value of $5000 due in 10 years and 2 months if money is worth 2.75% compounded weekly. Chapter 9: Section 9.4 4. Determine the proceeds of a 15-year promissory note discounted after 6 years at 9% compounded quarterly with a maturity value of $7500. 12. Calculate the proceeds of $5500 due in 7 years and 8 months discounted at 4.5% compounded semi-annually. Chapter 9: Section 9.5 6. Scheduled payments of $1200 due one year ago and $1000 due six months ago are to be replaced by a payment of $800 now, a second payment of $1000 nine months from now, and a final payment 18 months from now. What is the size of the final payment if interest is 10.8% compounded quarterly? Chapter 9: Review Exercise 8. A sum of money has a value of $3000 eighteen months from now. If money is worth 6% compounded monthly, what is its equivalent value (a) now? This study source was downloaded by 100000875280733 from CourseHero.com on 11-19-2023 16:28:12 GMT -06:00 https://www.coursehero.com/file/190289731/Unit-6-Exercisesdocx/ (b) one year from now? (c) three years from now? 22. An obligation of $10 000 is due one year from now with interest at 10% compounded semiannually. The obligation is to be settled by a payment of $6000 in 6 months and a final payment in 15 months. What is the size of the second payment if interest is now 9% compounded monthly? Chapter 10: Review Exercise 4. Determine the equated date at which two payments of $600 due four months ago and $400 due today could be settled by a payment of $1100, if interest is 7.25% compounded semiannually
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs