Interest Earned. Rujuta has just opened a NOW account that pays 7.5 percent inte

Question

Interest Earned. Rujuta has just opened a NOW account that pays 7.5 percent interest annually. If the account requires a minimum balance of $200 and she maintains $800 for the next 12 months, how much interest will she earn?

CH6.2 Interest Earned. Luz is depositing $5,100 in an eight-month CD that pays 3.25 percent annual interest. How much interest will she accrue if she holds the CD until maturity? (each month has 30 days

CH6.3 Value of CD. Travis has invested $6,000 in a three-month CD at 5 percent (annual). How much will Travis have when the CD matures? (each month has 30 days)

CH6.4 Interest Earned. China has invested $10,000 in a 13-month CD that pays 4 percent annually. How much interest will China receive at maturity? (each month has 30 days

CH6.5 T-bill Return. Troy paid $8,600 for a T-bill with a face value of $11,900. What is Troy's return if he holds the T-bill to maturity?

CH6.6 Return on T-bills. Kiku purchased a $42,000 T-bill for $39,000. A few months later, Kiku sold the T-bill for $39,500. What was Kiku's return on the T-bill?

CH6.7 Brenda purchased a $40,000, 90-day T-bill for $38,550.

CH6.7.a Return on T-bill Rate. What will Brenda's return be when the T-bill matures?

CH6.7.b Annualized T-bill Rate. What will her annualized rate be?   

Explanation / Answer

a) 800*0.075= 60

b) 5100*(0.03250/360 *240)

=110.5

c) 6,000*(0.05/360*90)

=75

d) 10000*(0.04/360*390)

=433.3

e) 11900-8600= $3300

f) $39,500-39000= $500

g) a) 40000-38550 = 1450

b) 38550(1+X) = 40000

= 0.0376 * 360/90

=0.1504

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.