# Compound interest – Accounting Questions

Please provide your working notes (e.g. Excel, Word file). Round off your final answers to two decimal points.

1. What is the future value of \$5,000 in 10 years at 5%,compounded monthly?
2. What is the future value of \$10,000 in 8 years at 8%,compounded quarterly?
3. If you receive \$10,000 in 5 years, what is its value today if the appropriate interest rate is 8% and interest is compounded semi-annually?
4. If you received \$10,000 5 years back, what is its value today if the appropriate interest rate is 8% and interest is compounded monthly?
5. At what annual rate of return can you triple your money in 8years if interest is compounded monthly?
6. At what annual rate of return can you quadruple (means 4times) your money in 16 years, if interest is compounded quarterly?
7. How many periods will it take you to quadruple (means 4times) your money at 7%, if interest is compounded semi-annually? how many years will it take?
8. How many periods will it take \$500 to grow to\$8,000 if you believe you can earn interest at the rate of 9% compounded monthly? how many years will it take?
9. What is the present value of \$15,500 received in 10 years if interest of 1% is compounded monthly?
10. What is the present value of \$22,000 received in 5 years if interest of 1% is compounded quarterly? 