Compound Interest 2

Question Description

1. How long did it take $4,625 earning 7.875% compounded annually to grow to $8,481.61?

2. The current balance on a loan is $3,837.30. If the interest rate on the loan is 10% compoundedmonthly, how long ago was the $2,870 loan made?

3. What is the remaining time until the maturity date of a $10,000 strip bond if it is purchased for$4,011.33 to yield 6.4% compounded semiannually until maturity?

4. A few years ago, Avtar invested $6,000 in a compound-interest GIC that earned 4.5%compounded semiannually. He recently received the maturity value of $7,168.99. What was theterm of the GIC?

5. Rounded to the nearest month, how long will it take an investment to double if it earns:a. 8.4% cm?b. 10.5% csa?

6. Rounded to the nearest month, how long will it take an investment to quadruple if it earns:a. 8% ca?b. 9% csa?

7. Which interest rate would you prefer to earn on a three-year GIC: 6% compounded monthly,6.1% compounded quarterly, 6.2% compounded semiannually or 6.3% compounded annually?

8. What is the effective rate of interest on a credit card that calculates interest at a rate of 1.8%per month?

9. If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is theeffective rate of interest?

10. If a $5,000 investment grew to $6450 in 30 months of monthly compounding, what effectiverate of return was the investment earning?

11. Lisa is offered a loan from a bank at 7.2% compounded monthly. A credit union offers similarterm, but at a rate of 7.4% compounded semiannually. Which loan should she accept? Presentcalculations that support your answer.

Get 20% Discount on The assignment
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on The Assignment

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

EssayBrill has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At EssayBrill, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.