Compound interest

• 2.4%, 10

• 2.4%, 5

• 4.8%, 10

• 4.8%, 5

Answer explanation

Compounded semi-annually means you get paid interest 2 times per year. So in 5 years, you will receive 10 times interest

What is the future value of $2200 invested for nine months at 4.25% compounded semiannually?

• $2270.50

• $2341.73

• $2234.97

• $2269.76

Find the present value of $5436.22 due in four years and three months at 4% compounded annually.

• $4601.56  

• $4592.55

• $4646.90

• $6422.27

Determine the equivalent value in 15 months of a payment of $3200 due in four months.  Money is worth 5% compounded semiannually. 

• $3253.11

• $3348.19

•   $3273.26

• $3499.43

Determine the proceeds of a non-interest bearing note for $3500 discounted 18 months before maturity at 8% compounded quarterly.   

• $2205.59

• $3397.57

• $3114.99

• $3107.90