Meghan purchased a 90-day interest-bearing note at 5.20% p.a. that has a face valueof $5,000.00.a. If she holds the note for the full 90 days, calculate the maturity value of the note.Round to the nearest centb. If the note is discounted 22 days from maturity at a rate of 5.90% p.a., calculate herproceeds.Round to the nearest cent->SAVE PROGRESSSUB-3°C A O O I E a Q0)

The security having short-term maturity with combined payment of principal and face value at…

Answered: Meghan purchased a 90-day…

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

An accountant purchases a T-bill with a face value of $5,000 for $4,975. If the term of the T-bill is 115 days, what is the annual simple interest rate (in percent) earned by the client? Round to the nearest tenth of a percent. (Use 360 days in 1 year.)
Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5635, and the account earned interest at a rate of 4.8% APR, compounded quarterly, each year. Having made her last deposit one year ago, Adriana now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.80% compounded quarterly. If Ms. Grandioso plans to withdraw $5000 from the account at the end of each quarter for the next 9 years (36 quarters), what will be the account balance total exactly nine years from now, immediately after she makes the last quarterly withdrawal?
Marcel Thiessen purchased a home for $205,600 and obtained a 15-year, fixed-rate mortgage at 7% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.)
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
(Round to the nearest cent as needed.)
Arnold purchased a note from Sylvester for $4300. The note will mature in 240 days, and bears 0.065 of simple interest rate. But 120 days after Arnold purchased the note, his friend Bruce convinced him to sell him the note for $4478.87. Bruce keeps the note until maturity. (a) What is the simple interest rate for Arnold in these transactions? (b) What is the simple interest rate for Sylvester in these transactions? (c) What is the simple interest rate for Bruce in these transactions?
Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. BothTrish and Josh will receive payments for next four years. At a discount rate of 9.5 percent, what is thedifference in the present value of these two sets of payments?Select one:a. $151.06b. $141.80c. $162.50d. $159.08e. $154.30
Eugene is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest rate at which he could afford to borrow in order to pay cash?
Arnold purchased a note from Sylvester for $4300. The note will mature in 240 days, and bears 0.065 of simple interest rate. But 120 days after Arnold purchased the note, his friend Bruce convinced him to sell him the note for $4478.87. Bruce keeps the note until maturity. (a) What is the simple interest rate for Arnold in these transactions? (b) What is the simple interest rate for Sylvester in these transactions? (c) What is the simple interest rate for Bruce in these transactions? Submit Answer
Clark’s Landscaping bills customers subject to terms 2/25, n/60. Required: Compute the annual interest rate implicit in the sales discount. If his bank charges 17 percent interest, should the customer borrow from the bank so that he can take advantage of the discount?
Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she reinvests the generated interest every month and also deposits $2,300 each month, how much will be in the account after 2 years? The interest is reinvested on the same day as the $2,300 deposit. Otions: 69177.89 71052.15 73548.61 70524.79
Shirley Trembley bought a house for $185,300. She put 20% down and obtains a simple interest amortized loan for the rest at 6 3 8 % for thirty years. (Round your answers to the nearest cent.) (a) Find her monthly payment.$ (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 $ $ $ $ (d) Most lenders will approve a home loan only if the total of all the borrower's monthly payments, including the home loan payment, is no more than 38% of the borrower's monthly income. How much must Shirley make to qualify for the loan?$ per month

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