None Your neighbour goes to the post office once a month and picks up two cheques, one for £18,000 andone for £4,000. The larger cheque takes 4 days to clear after it is deposited; the smaller one takes 6days. Assume 30 days per month. What is the weighted average delay?A 4.36 daysB) 4.78 days5.00 days4.21 daysMarEQuestion 11188

The question asks about the "weighted average delay" for two cheques. There are two cheques: one for…

Answered: Your neighbour goes to the post office…

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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How to do this question?
Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after nine months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $18,263.73 $18,828.59 $19,205.16 $19,581.73
Your neighbor goes to the post office once a month and picks up two checks, one for $25,000 and one for $5,000. The larger check takes six days to clear after it is deposited; the smaller one takes three days What is the average daily float? (We assume 1 month has 30 days) $5500 $1000 $5000 $4500
Mansukhbhai
Bha
2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?
2.36. Suppose you want to accumulate $10,000 for a down payment for a house. You will deposit $400 at the beginning of every month in an account that credits interest monthly at the rate of 0.6% per month. How long will it take you to achieve your goal?
9. The Money Shoppe will loan you cold hard cash until your next paycheck. You will write a $832 cheque post-dated by two weeks and you will receive $800 right now. What is the biweekly-compounded APR of this loan (assuming a year is exactly 52 weeks long)? Note: Biweekly happening every two weeks. a. 104.00% b. 177.25% c. 204.00% d. 208.00% e. 277.25% FV time PV 2 week interest APR com 2 week $ 832.00 2 weeks $ 800.00 4.0% 104% =26*4%
Suppose that on January 1 you have a balance of $6,000 on the following credit cards, which you want to pay off in the given amount of time. Assume that you make no additional charges to the card after January 1. The credit card APR is 24%, and you want to pay off the balance in 1 year. Round to the nearest cent The credit card APR is 25%, and you want to pay off the balance in 2 years. $ Round to the nearest cent The credit card APR is 26%, and you want to pay off the balance in 3 years. Round to the nearest cent
Paying off a Discover card. Assume that you have a balance of $3000 on your Discover credit card and that you make no more charges. Assume that Discover charges 21% APR and that each month you make only the minimum payment of 2% of the balance. a. Find a formula for the remaining balance after t monthly payments. b. On what balance do you begin making payments of $50 or less? c. Find how many months it will take to bring the remaining balance down to the value from part b.
Mansukh
How much will you owe a bank at the end of the 27th month if you took a loan of $25,000 for a period of 72 months at a rate of 9% per year compounded monthly, if you paid the bank your entire bonus of $9,000 at the end of the 12th month to bring down the loan quickly? You make payments to the bank at the end of every month. a. $421 b. $3,727 c. $7,090 d.$11,063

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