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(a) What is the value of the CD when it matures? $ (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the C return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) (c) What annual simple interest rate did Bill Casler end up making on his investment? Round your answer to two decimal places.

(a) What is the value of the CD when it matures? $ (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the C return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) (c) What annual simple interest rate did Bill Casler end up making on his investment? Round your answer to two decimal places.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Bill Casler bought a $7000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. (a) What is the value of the CD when it matures? $ (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) $ (c) What annual simple interest rate did Bill Casler end up making on his investment? Round your answer to two decimal places. %
Transcribed Image Text:Bill Casler bought a $7000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. (a) What is the value of the CD when it matures? $ (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) $ (c) What annual simple interest rate did Bill Casler end up making on his investment? Round your answer to two decimal places. %
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