Question 1:

If 10,000 is deposited in a money market when interest is coumpounded every month at an annual rate of 5%, the total amount accumulated at the end of a 5 years will be?

A) 12,762.82

B) 10,210.08

C) 12,833.59

D) None of these

Question 2:

What would cost to buy a U.S Treasury bill that pays 10,000 after 6 months where the simple annual interest rate is 3.75% ( Round to the nearestcent)

A) 9,625.45

B) 9,812.50

C) 9,815.95

D) None of these

Question 3:

How much should a bank bid on a 500,000 180 day T bill to earn 5.8% simple discount rate? Assume 360 days in a year (Round to the nearest dollar)

A) 485,909

B) 485,500

C) 485,000

D) None of these