Tim put $275 in the bank one year ago and forgot about it. Today, the bank sent Tim a statement indicating that he now has $294.25 in his account. What interest rate did Tim earn?   A. 5 percent B. 6 percent C. 7 percent D. 8 percent

Q: Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The…

A: Given  FV = 1,000 Price = 870

Q: Jenny wishes to double her financial fund and the bank gives her 8% rate of interest annually, how…

A: Here, Jenny deposited its money in a financial funds at the annual interest rate of 8% and she wants…

Q: Define interest and explain how interest rates vary based on risk, maturity, loan size, and…

A: The interest rate is the return that an individual receives from the financial asset in the economy.…

Q: What is an interest rate future? How can they be used to reduce interest rate risk by a borrower?

A: An interest rate future is a financial derivative that permits openness to changes in interest…

Q: Dennis is planning to invest his money to earn more. He is willing to take a little risk by buying…

A: Dennis is want to buy income earning assets and he is ready to bear less risk . Then following…

Q: 11. The face value of a bond is $10,000, and the annual coupon payment is $850. What is the coupon…

A: coupon rate is a rate  which is calculated by adding the sum of coupons paid per year and dividing…

Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…

A: Interest rate per quarter (i) can be calculated as follows. ...

Q: Summarizes some of the interest formulas?

A: Simple interest = (P*R*T)/100 where, P : Principal amount            R : Rate of interest per annum…

Q: You have decided to buy a house. You can get a mortgage rate of 5.5 percent, and you want your…

A: Given: Mortgage rate=5.5% Payments=$1175 or less Number of years=20 To find: Amount that could be…

Q: Annuity Suppose that you are thinking of buying a car that yields a rental of $5,000 each year for 3…

A: To determine how much you should be willing to pay for the car, we can calculate the present value…

Q: When an investor purchases O A. Stock. B. A mutual fund. C. Real estate. O D. A Bond. then he/she is…

A: Sale of good means the transfer of ownership from one person to other.  Assets are the investment…

Q: What does the interest rate you determine represent?

A: The interest is a specific percentage of the principal amount that is lent, borrowed, or deposited…

Q: Sara wants to have $600,000 in her savings account when she retires. How much must she put in the…

A: FV = PV ( 1 + r / 100) ^ n FV = Future Value  PV = Present Value r = rate of interest  n = number of…

Q: 1.Emily and Joel Schumaker are married clients who have just been approved for a twenty-year,…

A: Cash flow is the net balance of money coming into and going out of a firm at a particular moment in…

Q: You need a car. You decide to purchase a new car for $12,000 and sell it in one year. If you don't…

A: Opportunity cost is the cost of producing one good in terms of other.  Opportunity cost shows the…

Q: You may borrow or lend at a 5% interest rate, which you expect to remain stable forever. Make a…

A: “Since you have posted a question with multiple sub parts, we will  provide the solution only to the…

Q: ou expect to receive $10,000 at graduation in two years. You plan on investing it at 9 percent until…

A: Here, we calculate the given as follow;