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 interestreturn 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.%

Simple interest is quite simple and there is no interest on interest and used for period less than…

(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

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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Similar questions

please answere parts B and C. thank you.
Your friend signs a promissory note for $2,000 for 30 days with a rate of 2.25% attached. After fifteen days, you realize you need the money and sell the promissory to another friend to yield you 3.00%. How much interest did your friend earn in interest (dollar amount) for holding the promissory note for the last fifteen days?
Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If he sold the note in 36 days by discounting it at 6.00% p.a., calculate the proceeds of the note. Round to the nearest cent
Jack purchased $1,000 from his credit card and his bank, RBC, suggests installment on each purchase higher than $200 with a annual interest of 7.99% , he confirmed this option on his latest purchase. He should return the money in monthly installment for 3 years. How much he should pay each time?
ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is $2,571.53, how much of the first payment is interest expense, and how much is principal repayment?\
Mr. Jerome has an outstanding balance of $12000 on his credit card. The interest rate on the card is 12% he intends to pay off the card in 2 years. Find the APR on the card.
Henry Fuller has agreed to purchase a used automobile for $13,500. He wishes to limit his monthly payment to $350 for a period of 2 years. What down payment must he make to complete the purchase if the interest rate on the loan will be 6%?
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at 11 1/2% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment.$ (b) Find the total interest.$ (c) Prepare an amortization schedule for the first two months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $
Nikul
Go-Fast invests $20,000 in a certificate of deposit that mature safter 7 years and pays 9 percent interest, which is compounded annually until the certificate matures.a. How much interest will Connect earn if the interest is left to accumulate?b. How much interest will Connect earn if the interest is withdrawn each year?c. Why are the answers to a. and b. different?
A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years. The interest rate is 8% annually. The Bank has the following policy: Charge $650 processing fees, and loan initiation charge 1.5 point, and stipulate a penalty equal to three times one month payment a. What is the monthly payment b. Build a 3 rows of amortization table c. What is the real cost of the Mortgage d. After 5 years BP announced that ha offered a mortgage at 7%. Should the couple switch to BP
please answer with correct calculations and explanations. QUESTION: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a year mortgage at 8% and 4 discount points. Kari made a deposit of $30,000 (applied to the doen payment) when the sales contract was signed. Kari also has three expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).

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