Question

2. A 3 -month $25,000 treasury bill with a simple annual discount rate of 0.24% was sold in 2016. Assume 365 days in a year.

(a) Find the price of the treasury bill  (T-bill).

(b) Find the actual interest rate paid by the Treasury.

3.Find the compound amount for the deposit and the amount of interest earned $19,000 at 3% compounded monthly for 18 years.

The compound amount after 18 years is $____

4.Find the interest rate for a $6000 deposit accumulating to $6684 compounded annually for 8 years.

The interest rate is __%

5.Find the APY corresponding to the following nominal rate. 9%compounded semiannually.  

The APY is ___%

6.Find the APY corresponding to the following nominal rate. 8% compounded semiannually.

The APY is ____%

7.Find the future value for the annuity due with the given rate.Payments of $15,000 for 10 years at 0.21% compounded monthly.

The future value of the annuity due is $___

8.Find the monthly house payments necessary to amortize a 9.6 % loan of $226,600 over 15 years.

The payment size is $___

9.Find the monthly house payments necessary to amortize an 8.4% loan of $234,100 over 25 years.

The payment size is $___

10.Find the payment made by the ordinary annuity with the given present value. $88,250 ; monthly payments for 26 years; interest rate is 3.8 %, compounded monthly.

The payment is $__

11.Find the payment made by the ordinary annuity with the given present value.$219.682; quarterly payment for 20 years; interest rate is 6, compounded quarterly.

The payment is $___

12.Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $10,136.27 at 8.9% compounded annually for 5 years.

The present value is $____

Answer 1

1)   

2) Discount = 25000-24985 = 15 (for 3 months)

For whole year = 15*4 = 60

So, Interest Rate be -

60 21985 * 100 = 6000 2 2498524985

3)