A certificate of deposit (CD) often charges a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the charge for early withdrawal on a $15000 CD with a 1.5% interest rate APR, compounded monthly?
You just purchased a high-grade corporate bond with a face value of $1000. The coupon rate is 2%. How much to you expect to be paid in coupon payments over the next year?
1. the charge for early withdrawal on a $15000 CD= $37.5
2. coupon payments for the next year= $20
A certificate of deposit (CD) often charges a penalty for withdrawing funds before the maturity date....
Part 1 - A certificate of deposit often charges a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a CD paying 4 percent and valued at $26,000? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Part 2 - A payday loan company charges 5 percent interest for a four-week period. What would be the annual interest rate from that...
Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1, pays 5.95 percent APR compounded quarterly, while the second certificate of deposit, CD #2, pays 6.00 percent APR compounded annually. What is the effective annual rate (the EAR) of each CD, and which CD do you recommend to your grandmother? If the first certificate of deposit, CD #1,...
Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1, pays 5.95 percent APR compounded quarterly, while the second certificate of deposit, CD #2, pays 6.00 percent APR compounded weekly. ****What is the effective annual rate (the EAR) of each CD, If the first certificate of deposit, CD #1, pays 5.95 percent APR compounded , the EAR for...
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
3) Determine the value at the end of 3 years o certificate of deposit (CD) that pays a nominal annua pays a nominal annual interest rate of 8% co a) Quarterly b) Monthly f s3,500. If he only pays the APR of 12% on credit 4 Phillip has a credit card payment balance outstanding o minimum balance of $50 each month, and the credit card charges an card balances, how long will it take for Phillip to pay off his...
Suppose you have $2,350 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? Nper Rate PV FV PMT
You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded monthly. How much must you invest if you want the balance in the CD account to be $8,500 in five years? Please explain the formula.
Solve with BA II Plus A client invests €20,000 in a four-year certificate of deposit (CD) that annually pays interest of 3.5%. The annual CD interest payments are automatically reinvested in a separate savings account at a stated annual interest rate of 2% compounded monthly. At maturity, the value of the combined asset is closest to A €21,670. B €22,890. C €22,950 Please help me to solve this problem with finance calculator BA II plus
5. Suppose a CD (Certificate of Deposit) advertised an APR of 8%. Assuming the APR was the result of monthly compounding, find the effective annual yield to the nearest tenth of a percent. 8. The going rate for a home mortgage with a term of 30 years is 3.8%. The lending agency says that based on your income, your monthly payment could be $900. How much can you borrow? 9. Suppose you invest $5,000 in a savings account that pays...
Suppose you can receive an interest rate of 4 percent on a certificate of deposit (CD) at a bank that is charging borrowers 8 percent on new car loans. Which one of the following choices does not explain why you might be unwilling to loan money directly to someone who wants to borrow from you to buy a new car, even if that person offers to pay you an interest rate higher than 4 percent? O A. You have to...