Question

TOPC. X51) If an investor buys a 39-week T-bill with a maturity value of $25,000 for $23,543 what annual interest rate (annual yield) will the investor earn? (Express your answer as a percentage, correct to one decimal place.) *52) An investment company pays 7% compounded quarterly. What is the effective rate? (Compute the answer to two decimal places). 53) How much should you invest now at 6% compounded semiannually to have $8,500 to bu a car in 2.5 years? ve the problem. 54) Jennifer invested $3000 in her savings account for 7 years. When she withdrew it, she ha was compounded continuously. What was the interest rate on the account? Round to the percent. 55) The State Employees' Credit Union offers a 1-year certificate of deposit with an APY (o If interest is compounded quarterly, find the actual interest rate. Round to the nearest to e the problem. Round to the nearest cent as needed. 56) Samantha's savings account has a balance of $4643. After 25 years, what will the amou compounded annually? the len n ataimul

Answer 1

51) Solution: 8.3% Working: Principal + Interest=Maturity value 23,543 + [23,543 *** 39/52] = 25,000 23,543 * x * 39/52 = 1457 x=0.08252 or 8.3% 52) Solution: 72.19 Working: r=(1+.07 -1 = (1+0.0175)*-1 =(1.0175)* - 1 r=0.0718590312890625 x 100 = 7.19 53) Solution: 7332.17 Working: PV = Pemer : nominal rate k: compounded times a year 8500 8500 (1 + 6/200 2.5* 2 - 7332.17 1 .15927 AS PER POLICY W HAVE TO ANSWER FIRST QUESTION, I HAVE ANSWERED MORE THAN IT