1) If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be

your account at the end of two year and 2 months? (Use a number, 2 decimal values, no commas, no space,
no unit of measurement)
GIVEN:
PV= $18,000
i= 7% or 0.07
m= 12
n= 2yrs & 2mos or 13/6 yrs

SOLUTION:
1+ i mN
FVN = PV ( )
m
1+ 0.07 12*13/6
FVN = 18,000 ( )
12
FVN = 20938.67

2) If the bank is paying 12% interest compounded semiannually, how much must you deposit today in your
account if you wish to have $18,000 at the end of two years? (Use a number, 2 decimal values, no commas,
no space, no unit of measurement) 
GIVEN:
FV= 18,000
i= 12% or 0.12
m= 2
n= 2yrs

SOLUTION:
1+ i mN
PVN = FV/( )
m
1+ 0.12 2*2
PVN = 18,000/( )
2
PVN = 14257.69
3) If the bank is paying 6% interest compounded daily at 360 days a year, how many periods will there be in a
year? (Use whole number, no decimal value, no commas, no space, no unit of measurement) 

GIVEN:
i= 6% or 0.06
m= 360
SOLUTION:
Number of periods = (Number of Years) (Periods/Year) = NM
Number of periods = (1) (360)
Number of periods = 360

4) If you deposited $35000 and the bank is paying 4% interest compounded every 4 months, how much would
be your account at the end of 240 days? (Use a number, 2 decimal values, no commas, no space, no unit of
measurement) 

GIVEN:
PV= 35,000
i= 4% or 0.04
m= 4
n= 240 days or 48/73 yrs

SOLUTION:
1+ i mN
FVN = PV ( )
m
1+ 0.04 4*48/73
FVN = 35,000 ( )
4
FVN = 35928.07

5) If the bank is paying 12% interest compounded semiannually, how many periods will there be in a year?
(Use whole number, no decimal value, no commas, no space, no unit of measurement)

GIVEN:
i= 12% or 0.12
m= 2
n= 1

SOLUTION:
Periodic Rate (IPER) = Stated Annual Rate = I/M
Number of Payments /Year
Periodic Rate (IPER) = 12%/2
Periodic Rate (IPER) = 6%

Number of periods = (Number of Years) (Periods/Year) = NM

Number of periods = 1 x 2
Number of periods = 2

6) If the bank is paying 8% interest compounded quarterly, how much must you deposit today in your account
if you wish to have $35,000 at the end of 3 months? (Use a number, 2 decimal values, no commas, no
space, no unit of measurement)
GIVEN:
FV= 35,000
i= 8% or 0.08
m= 4
n= 3mos or ¼ years

SOLUTION:
1+ i mN
PVN = FV/( )
m
 1+ 0.08 4*1/4
PVN = 35,000/( )
4
PVN = 34313.73

7) If the bank is paying 8% interest compounded quarterly, how many periods will there be in a year? (Use
whole number, no decimal value, no commas, no space, no unit of measurement)
GIVEN:
i= 8% or 0.08
m= 4

SOLUTION:

Periodic Rate (IPER) = Stated Annual Rate = I/M

Number of Payments /Year
Periodic Rate (IPER) = 8%/2
Periodic Rate (IPER) = 4%

Number of periods = (Number of Years) (Periods/Year) = NM

Number of periods = (1) (4)
Number of periods = 4

8) If the bank is paying 4% interest compounded every 4 months, how many periods will there be in a year?
(Use whole number, no decimal value, no commas, no space, no unit of measurement)
GIVEN:
i= 4% or 0.04
m= 3

SOLUTION:
Number of periods = (Number of Years) (Periods/Year) = NM
Number of periods = (1) (3)
Number of periods = 3

9) If the bank is paying 7% interest compounded monthly, how many periods will there be in a year? (Use
whole number, no decimal value, no commas, no space, no unit of measurement) 
GIVEN:
i= 7% or 0.07
m= 12

SOLUTION:
Number of periods = (Number of Years) (Periods/Year) = NM
Number of periods = (1) (12)
Number of periods = 12

10) If the bank is paying 6% interest compounded daily at 360 days a year, how much must you deposit
today in your account if you wish to have $18,000 at the end of 240 days? (Use a number, 2 decimal values,
no commas, no space, no unit of measurement) 

GIVEN:
FV= 18,000
i= 6% or 0.06
m= daily (360 days/year)
n= 240 days or 48/73 years

SOLUTION:
1+ i mN
PVN = FV/( )
m
1+ 0.06 360*48/73
PVN = 18,000/( )
360
PVN = 17303.75