Learning Objectives

After completing this chapter, you will be able to:

Calculate maturity value, future value, and present value in compound interest applications, by both the algebraic method and the preprogrammed financial calculator method

Calculate the maturity value of compound interest Guaranteed Investment Certificates (GICs)

Calculate the price of strip bonds

Calculate the redemption value of a compound interest Canada Savings Bond

Adapt the concepts and equations of compound interest to cases of compound growth

Calculate the payment on any date that is equivalent to one or more payments on other dates

Calculate the economic value of a payment stream

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