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- An accountant purchases a T-bill with a face value of $4,000 for $3,955. 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.)Assume the $10,000 Treasury bill, 4% for 13 weeks. Calculate the effective rate of interest. (Use calendar year. Round your answer to the nearest hundredth percent.)a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is 18% compounded monthly and the first payment is made one month after the purchase?
- To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual simple interest rate does this earn? (Round your answer to one decimal place.)Assume the $12,000 Treasury bill, 4% for 13 weeks. Calculate the effective rate of interest. Note: Use calendar year. Round your answer to the nearest hundredth percent.Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of $65,000, what recommendation would you make to Aunt Tilie? China Manufàcturing Agents, Inc. is preparing a five-year plan. Today, sales are $1,000,000. If the growth rate in sales is projected to be 10 percent over the next five years, what wil the dollar amount of sales be in year five? Dan and Jia are newlyweds and have just purchased a condominium for $70,000. Since the condo is very small, they hope to move into a single-family house in 5 years. How much will their condo worth in 5 years if inflation is expected to be 8 percent? You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you Jeave the money invested for another 5 years how much will you have in the 15th year? If you deposit $45,000 into an account earming 4%…
- You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual coupon (paid semiannually). What wil the first coupon payment be if the semiannualinflation over the first six months is 2 percent?Suppose Jennifer deposits $500 in an account at the end of this year. $400 at the end of the next year, and $300 at the end of the following year. If her opportunity cost rate is 7.5 percent, (a) how much will be in the account immediately after the third deposit is made? (b) How much will be in the account at the end of three years if the deposits are made at the beginning of each year?The manager has 5 employees whose combined salaries through the end of this year are $300,000. If he expects to give an average raise of 7% each year. If the interest rate is nine percent per year, calculate the present worth of the employees' salaries over the next five years.
- Mr. Smith has decided to invest $340 at the end of each quarter in an account that pays 8.6% compounded quarterly. After how many quarters will the account be worth $46,000.00? It will take 36.95 Incorrect quarters. (Round to 2 decimal places.)A client wants to save $ 20,000 for a year starting from January at an initial effective rate of 1.75%, every three months the effective rate increases 0.75% and every two months he plans to save $ 2,000 to. Calculate the annual average TNA. b. How much interest is he going to receive for each month?An investor buys a bond for $1000. She receives $10 at the end of each month for 2 months and then sells the bond at the end of the second month for $1040. Determine the internal rate of return on this investment.