Question

1- Lionel invested $66,000.00 into a fund which earns interest of 4.00% compounded monthly. How long will it take for the fund to grow to a value of $78,435.52.

2-Lucy is expected to settle a loan on May 20th, 2019 by paying $5,500. What amount should she pay if she decides to settle it on June 23rd, 2018 instead? The interest rate is 4.61% compounded monthly.

3-

An investment of $16,000 is growing at 4% compounded quarterly.

a. Calculate the maturity value of this investment at the end of year 1.

Round to the nearest cent

b. If the interest rate changed to 6% compounded monthly at the end of year 1, calculate the maturity value of this investment at the end of year 4.

Round to the nearest cent

c. Calculate the total amount of interest earned from this investment during the 4-year period.

4)

Sophie invested $5,750 at 3.88% compounded quarterly.

a. Calculate the maturity value of the investment at the end of 5 years.

Round to the nearest cent

b. Calculate the amount of interest earned during the 5 year period.

Answer 1

Based on the given data, pls find below workings, steps, formulae and the answers highlighted in yellow;