1. Find the simple interest for $4902 at 9.5% for 11 months.

2. Find the compound amount for $312.45 at 6% compounded semiannually for 16 years.

3. Find the amount of interest earned by depositing $12,903.45 at 10.37% compounded quarterly for 29 quarters.

4. Find the present value of $17,650 in 4 years, 8% compounded quarterly.

5. Write the first four terms of the geometric sequence with a = 4 and r = ½.

6. Find the fifth term of the geometric sequence with a = -2 and r = -2.

7. Find the sum of the first five terms of the geometric sequence with a = 8000 and r = -1/2.

9. Find the future value of the following annuity. $500 deposited at the end of each 6-month period for 8 years; money earns 6% compounded semiannually.

10. Find the amount of each payment that must be made into a sinking fund to accumulate the following amount. (Recall, in a sinking fund, payments are made at the end of every interest period.)
$57,000; money earns 6% compounded semiannually for 8 ½ years.

11. Find the present value of the following ordinary annuity. Payments of $877.34 monthly for 17 months at 9.4% compounded monthly.

12. Find the monthly house payment for the following mortgage. $56,890 at 10.74% for 25 years.

13. Personal Finance: Michael Garbin owes $5800 to his mother. He has agreed to reapy the money in 10 months at an interest rate of 10.3%. How much will he owe in 10 months? How much interest will he pay?

14. Personal Finance: To buy a new computer, Mark Nguyen borrows $3250 from a friend at 9% interest compounded annually for 4 years. Find the compound amount he must pay back at the end of the 4 years.

15. When the Lee family bought their home, they borrowed $115, 700 at 10.5% compounded monthly for 25 years. If they make all 300 payments, repaying the loan on schedule, how much interest will they pay? (Assume the last payment is the same as the previous ones.)

16. Find the monthly house payments for each mortgage. $51,607; 13.6% compounded monthly; 32 monthly payments

The solution explains and provides formulas for calculations of the value of money, such as present value, future value of ordinary annuity, monthly payment of mortgage, and payment to sinking fund, etc.

25. The stated rate of interest is 10%. Which form of compounding will give the highest effective rate of interest?
A. annual compounding
B. monthly compounding
C. daily compounding
D. continuous compounding
E. It is impossible to tell without knowing the term of the loan.

suppose the deposit $20,000 for 5 yrs @ 8% rate what is the return annually (n = 1) and quarterly (n = 4).
Round both to the hundredth place.
c) Does compounding annually or quarterly yield more interestand explain
d) if a bank compounds continuously the the formula used is A=Pe^rt where e is a constant and equals

I have a discussion that deals with exercises in determining Equivalent Annual Rate (EAR.) This is closely related to the time value of moneyand deals with how the frequency of compounding of the interest rate affects the value calculation. The result is not the same when interest is compounded quarterly, for example, as it is

Chapter 4 in the Finance: Applications and Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustme

Please use Excel and show a cash flow time line to solve the following:
I'm purchasing a 10-year bond with a $1,000 face value that pays interest of $60 semiannually. The yield to maturity is 10 percent with semiannual compounding. What price should I pay for the bond?

Using Microsoft Excel, calculate the total amount you will receive in a year if you invest $1,000 now (assuming the interest rate is 8% per annum) at:
a. yearly compounding
b. semiannually compounding
c. quarterly compounding
d. daily compounding

Universal Bank pays 7 percent interest, compounded annually, on time deposits. Regional Bank pays 6 percent interest, compounded quarterly.
a. Based on effective interest rates, in which bank would you prefer to deposit your money? Why
b. Could your choice of banks be influenced by the fact that you might want to withdraw

You hold $2000 as a customer deposit, but the customer wants to make sure he does not loose on the opportunity cost of the dollars. You agree to pay the customer 10% interest during the holding period. At the end of 3 years you need to return the deposit and the interest to the customer. How much will you have to give the cus