What is the difference in the amount of interest

Reference no: EM132217988

Compound Interest Questions -

Question 1 - A demand loan for $8,944.61 with interest at 7.8% compounded semi-annually is repaid after two years, seven months. What is the amount of interest paid?

a. $1,942.56

b. $1,946.87

c. $1,952.88

d. $1,954.94

Question 2 - An investment of $2,836.05 earns interest at 6.9% per annum compounded monthly for 4 years. At that time the interest rate is changed to 1.7% compounded annually. How much will the accumulated value be three years after the change?

a. $4,012.89

b. $3,928.25

c. $3,988.47

d. $4,004.88

Question 3 - Kiara opened an RRSP deposit account on December 1, 2008 with a deposit of $1,700. She added $1,700 on January 1, 2010, and $1,700 on May 1, 2012. How much is in her account on December 1, 2016 if the deposit earns 5.6% p.a. compounded monthly?

a. $7,242.55

b. $7,289.55

c. $7,341.64

d. $7,356.28

Question 4 - A debt of $9,388.81 is repaid by payments of $1,160.62 in 4 months, $1,178.29 in 13 months, and a final payment in 23 months. If interest was 4% compounded semi-annually, what was the amount of the final payment?

a. $7,675.70

b. $7,677.45

c. $7,684.42

d. $7,692.48

Question 5 - The Continental Bank advertises capital savings at 6.6% compounded annually, while TD Canada Trust offers premium savings at 6.5% compounded monthly. Suppose you have $2,000 to invest for two years. What is the difference in the amount of interest?

a. 4.00

b. 4.04

c. 4.17

d. 4.08

Question 6 - If $6,000 is invested for six years and seven months at 6% compounded semi-annually, what is the interest that the investment earns?

a. $2,832.45

b. $2,854.72

c. $2,814.78

d. $2,833.96

Question 7 - What sum of money will grow to $3,184.41 in nine years at 3% compounded monthly?

a. $2,431.73

b. $2,517.88

c. $2,520.41

d. $2,498.47

Question 8 - Determine the proceeds of a non-interest-bearing note with a maturity value of $9,000 three years and ten months before the due date if the interest rate is 7% compounded semi-annually.

a. $6,900.44

b. $6,910.78

c. $6,911.58

d. $6,913.53

Question 9 - Scheduled loan payments of $1,029 due in 9 months and $388 due in 21 months are rescheduled as a payment of $622 due in 39 months and a second payment due in 45 months. Determine the size of the second payment if interest is 6.9% compounded semi-annually and the focal date is 45 months from now.

a. $1,142.88

b. $1,062.16

c. $1,088.78

d. $1,112.44

Question 10 - Three years and five months after its date of issue, a six-year promissory note for $3,300 bearing interest at 7.5% compounded monthly is discounted at 7% compounded semi-annually. Find the proceeds of the note.

a. $4,322.84

b. $4,326.60

c. $4,388.41

d. $4,397.64

Reference no: EM132217988

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