Recently, a certain bank offered six-month CDs at 8.0% compoundedmonthly. (Round your answers to two decimal places.)(a) Find the annual yield of one of these CDs.%(b) How much would a $1,000 CD be worth at maturity?S(c) How much interest would you earn?(d) What percent of the original $1,000 is this interest?%

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Answered: Recently, a certain bank offered…

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

You borrow $305,000; the annual loan payments are $46,451.56 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. = %
What is the future value of the initial $10,000 deposit after 5 years? We assume current interest rate is = 6%, compounded monthly. $13,552.6 $13,512.5 $13,277.6 $13,488.5
CZ Enterprises borrows $202,775 at an interest rate of 10% today and will repay this amount by making 10 semiannual payments. Payments begin in six months. What is the amount of the payments that CZ will need to make? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.) CZ will need to make payments of $ 26,260.31.
Suppose you invest $850 in an account paying 5% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 29 years? How much of this balance corresponds to "interest on interest"? a. What is the balance in the account after 2 years? The balance in the account after 2 years is $ (Round to the nearest cent.)
An amount of P dollars is borrowed for the given length of time at an annual interest rate of r. Find the simple interest that is owed. (Round your answer to the nearest cent.) P = $3200, r = 9.0%, 3 months
Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.) 1) p $500, r 8%, t = 2 years A) $80.00 B) $8.00 C) $2000.00 D) $31.25

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