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