Unit 1 L4 Lesson Practice
9.5 Calculating i and j
1. Canary Calendars Inc. invested this year's profits of $64,000 in a bond that matured to
$84,500 in 2 years. Calculate the fund's quarterly compounding nominal interest rate and
periodic interest rate.
N
I/Y
P/Y
C/Y
PV
PMT
FV
2. An initial $1800 investment was worth $2299.16 after two years and nine months. What
semi-annually compounded nominal rate of return did the investment earn?
N
I/Y
P/Y
C/Y
PV
PMT
FV
3. A computer assembling company took a loan of $30,000 to purchase a conveyer belt. If the
debt accumulated to $45,850 in 2 years, calculate the quarterly compounding interest rate.
N
I/Y
P/Y
C/Y
PV
PMT
FV
4. Mark heard that he could triple his money in 15 years if he invested it in his friend's
telecommunications business. What monthly compounding interest rate should the business
offer?
N
I/Y
P/Y
C/Y
PV
PMT
FV
5. If an investment grew to $12,000 in 2 years and the interest amount earned was $800,
calculate the monthly compounding interest rate.
N
I/Y
P/Y
C/Y
PV
PMT
FV
Unit 1 L5 Lesson Practice
9.6 Calculating n and t
1. How long would it take a loan of $15,625 to accumulate to $18,500 at the rate of 8%
compounded quarterly?
N
I/Y
P/Y
C/Y
PV
PMT
FV
2. Rudolph invested $5000 in his RRSP that was earning 9.55% compounded semi-annually.
How long would it take for his investment to grow to $100,000?
N
I/Y
P/Y
C/Y
PV
PMT
FV
3. Texas Equipment wanted to invest in a bond that promises to triple its investment at 12.5%
compounded quarterly. How long would it take for the bond to mature?
N
I/Y
P/Y
C/Y
PV
PMT
FV
4. The maturity value of a bond is $10,850 and it has grown at an interest rate of 6%
compounded quarterly. Calculate the time period of the bond if the interest earned is
$2300.
N
I/Y
P/Y
C/Y
PV
PMT
FV
5. Calculate the time period of an investment in a mutual fund that matured to $43,676.25
yielding an interest of $13,676.25 at 8% compounded monthly.
N
I/Y
P/Y
C/Y
PV
PMT
FV
