Assume that a bond will make payments every six months as shown month periods): Period Cash Flows $20.87 2 $20.87

If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is the Maturity value?

Assume the interest is 8% compounded quarterly. a)Find the quarterly effective interest rate for 8% compounded quarterly. (b) Find the future value at the end of the 8th quarter of the cash flows identified at the end of quarter 4 and quarter 8. (c) Find the end of quarter deposits, A, that are equivalent to the future value you calculated in part b.

Calculate the effective interest rate per month for an interest rate of 14% in continuously compounded account?  a. 1.488% b. 1.258% c. 1.671% d. 1.174%

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5. Which of the following bank accounts has the highest effective annual return (EAR)? a. An account that pays 8% nominal interest with monthly compounding. b. An account that pays 8% nominal interest with annual compounding. c. An account that pays 7% nominal interest with daily (365-day) compounding. d. An account that pays 7% nominal interest with monthly compounding. 6. Which of the following statements regarding a 30-year monthly payment amortized mortgage with a fixed nominal interest rate of 10% is CORRECT? a. The monthly payments will increase over time. b. A larger proportion of the first monthly payment will be interest, and a smaller proportion will be principal, than for the last monthly payment. c. The total dollar amount of interest being paid off each month gets larger as the loan approaches maturity. d. The amount representing interest in the first payment would be higher if the nominal interest rate were 7% rather than 10%. 7. What is the present value of the following…

Assuming a 360-day year, when a $12,919, 90-day, 6% interest-bearing note payable matures, total payment will amount to:

Assuming a 360-day year, when a $16,098, 90-day, 8% interest-bearing note payable matures, total payment will be

Assuming a 360-day year, when a $11,200, 90-day, 5% interest-bearing note payable matures, the total payment will be Oa. $560 Ob. $140 Oc. $11,760 Od. $11,340 0 0 0 0

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