Q: Interest Earned. Claire has invested $10,000 in an
Interest Earned. Claire has invested $10,000 in an eighteen-month CD that pays 2.25%. How much interest will Claire receive at maturity?
See AnswerQ: T-bill Return. Troy paid $9,800 for
T-bill Return. Troy paid $9,800 for a T-bill with a face value of $10,000. What is Troy’s return if he holds the T-bill to maturity?
See AnswerQ: Return on T-bills. Dave has $20,000
Return on T-bills. Dave has $20,000 excess cash to invest. He can purchase a $20,000 T-bill for $19,800 or two $10,000 T-bills for $9,850 each. Which will give him the better return?
See AnswerQ: Return on T-bills. Lauren purchased a $40,
Return on T-bills. Lauren purchased a $40,000 T-bill for $39,200. A few months later, Lauren sold the T-bill for $39,700. What was Lauren’s return on the T-bill?
See AnswerQ: Annualized T-bill Rate. Brenda purchased a $30,
Annualized T-bill Rate. Brenda purchased a $30,000, ninety-day T-bill for $29,850. What will Brenda’s return be when the T-bill matures? What will her annualized rate be?
See AnswerQ: Interest Charged. You just borrowed $5,500 and are
Interest Charged. You just borrowed $5,500 and are charged a simple interest rate of 9%. How much interest do you pay each year?
See AnswerQ: Credit Card Interest. Margie has had a tough month. First
Credit Card Interest. Margie has had a tough month. First, she had dental work that cost $700. Next, she had her car transmission rebuilt, which cost $1,400. She put both of these unexpected expenses...
See AnswerQ: Interest on Credit Cards. Eileen wants a car that costs $
Interest on Credit Cards. Eileen wants a car that costs $7,000. How long would it have taken Eileen to save for the outright purchase of the car if she did not have any credit card debt and used the i...
See AnswerQ: Ethical Dilemma. Chen recently graduated from college and accepted a job
Ethical Dilemma. Chen recently graduated from college and accepted a job in a new city. Furnishing his apartment has proved more costly than he anticipated. To enable him to make purchases, he applied...
See AnswerQ: Down Payment and Loan Payments. Lucas wants to buy a used
Down Payment and Loan Payments. Lucas wants to buy a used car that will cost $5,500. How much will his monthly payment be if he puts $2,500 down and finances the remainder at 5% for two years?
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