• Oct 24, 2006, 04:19 PM
jibarra3
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
• Oct 25, 2006, 07:19 AM
RickJ
Here's a TVM calculator for questions like that:
http://www.tcalc.com/tvwww.dll?User?...stm=frs_invest
• Nov 17, 2006, 08:57 AM
tharu
1. Ans(a);
Use da equ. : cumulative amount=initial val*int rate^periods.
the int. rate given is annual 10000*(1.05^5).
2. Ans(c);
Apply x(1+n*r)=current value; where x initial cost,n= no of periods,r=rate
i.e x(1+1/2*.0375)=10000;
x(1.018... )=10000;
3. No idea??
• Nov 17, 2006, 03:21 PM
CaptainForest
Question 1: 10,000 x 1.055 = 12,762.82 OR ANSWER A

Question 2:
variable x 1.0375 /2 = 10,000
variable x 1.01875 = 10,000
variable = 10,000 / 1.01875
variable = 9,815.95