A person opens a bank account with a deposit of $150. At
the end of 3 years, there is $179.34 in the account. What nominal interest
rate compounded quarterly was earned on the investment?

Answer:

N
=

3

I/Y =

?

PV =

$150

PMT =

$0

FV =

$179.34

2ND
I/Y

P/Y =

1

C/Y =

4

CPT & I/Y =

6.14%

2) Question

A deposit of $1500 earned $672.45 interest over 7 and ½
years. What nominal interest rate compounded semi-annually was paid on
the deposit?

Answer:

N
=

7.5

I/Y =

?

PV =

-$1,500

PMT =

$0

FV =

$2,172.45

2ND
I/Y

P/Y =

1

C/Y =

2

CPT & I/Y =

5%

3. Question

A principal of $7100 has maturity value of $13,966.70 in
10 years. If the interest rate is compounded annually, what is the nominal
rate?

Answer:

N
=

10

I/Y =

?

PV =

-$7,100

PMT =

$0

FV =

$13,966.70

2ND
I/Y

P/Y =

1

C/Y =

1

CPT & I/Y =

6.999% (7%)

4. Question

A present value of $1301.69 has a future value of $2569.26
in 7 years and 7 months. What is the nominal rate compounded monthly?
Note: 7 years and 7 months = (7 x 12 months) + 7 months = 91 months

Answer:

N
=

91

I/Y =

?

PV =

-$1,301.69

PMT =

$0

FV =

$2,569.26

2ND
I/Y

P/Y =

12

C/Y =

12

CPT & I/Y =

9%

5. Question

At what nominal rate compounded quarterly will money double
in 7 and ½ years?

N
=

7.5

I/Y =

?

PV =

-$100

PMT =

$0

FV =

$200

2ND
I/Y

P/Y =

1

C/Y =

4

CPT & I/Y =

9.35%

6. Question

At what nominal rate compounded monthly will money double
in 6 years?

N
=

6

I/Y =

?

PV =

-$100

PMT =

$0

FV =

$200

2ND
I/Y

P/Y =

1

C/Y =

12

CPT & I/Y =

11.61%

7. Question

At what nominal rate compounded semi-annually will money
triple in 9 and ½ years?