You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this bill was 5% per annum. Today, when you sell the bank bill, the yield has increased 6%. What is your return holding the bank bill?
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- A 90-day bank bill with a face value $100,000 was purchased with a yield of 4.00%. If it is sold after 30 days at a yield of 4.50%, what dollar amount of interest was earned?What is the compound yield on a Treasury bill that costs $98,830 and will be redeemed for $100,000 after 90 days? Assume 365 days in a year. Round your answer to one decimal place. % How much additional return would you have to earn if you had bought $100,000 worth of 90-day commercial paper for $98,566? Assume 365 days in a year. Round your answer to one decimal place. %If you have $60,000 in a bank account that is paying an interest rate of 4 percent that is being compounded annually, how many years will it take to double your investment if the interest rate stays the same?
- You have $14,000 in the bank today. How much would you need to save each year in order to accumulate $3,000,000 in 30 years? Assume the interest rate is 10% and that the payments occur at the end of each year beginning one year from today. EnterAt time 0 you had $2500 in the bank and 21 years later you had $15650. Calculate the effective annual rate of return if the bank pays interest continuouslyYou want to invest $24,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded quarterly. What is the effective rate of return that you will earn from this investment?
- You plan to borrow $1000 from a bank. In exchange fro $1000 today, you promise to pay $1080 in one year. What does the cash flow timeline look like from your perspective? What does it look like from the bank's perspective?You want to invest $19,000 and are looking for safe investment options. Your bank is offering a certificate of deposit that pays a nominal rate of 4.00% that is compounded quarterly. Your effective rate of return on this investment is . Suppose you decide to deposit $19,000 into a savings account that pays a nominal rate of 5.20%, but interest is compounded daily. Based on a 365-day year, how much would you have in your account after nine months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $19,160.48 $19,358.01 $19,753.07 $20,148.13