Assume you purchased a 10,000 face value semi-annual TIPS one year ago. The coupon rate is 0.75%. Assume the first 6 months of inflation were 8.5% and the second 6-months saw inflation of 5.78 %. What is the dollar amount of interest you receive for your second coupon payment?
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- Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 5.00 years from today? Suppose you deposit $1,101.00 into an account 7.00 years from today. Exactly 15.00 years from today the account is worth $1,466.00. What was the account's interest rate? Suppose you deposit $1,093.00 into an account 7.00 years from today that earns 12.00%. It will be worth $1,613.00 _____ years from today. Assume the real rate of interest is 2.00% and the inflation rate is 4.00%. What is the value today of receiving 10,528.00 in 15.00 years?Suppose that you can make an annual profit of $600 on an investment of $4000. Suppose you borrow the investment amount at an annual interest rate of 8%. Your updated expectation of inflation is 6%. Then your gross real returns (before loan payment) is _____ and your net real returns (after loan payment) is ______.Suppose that you want to take out a loan and that your local bank wants to charge you an annual real interest rate equal to 3%. Assuming that the annualized expected rate of inflation over the life of the loan is 1%, determine the nominal interest rate that the bank will charge you. What was the actual real interest rate on the loan if, over the life of the loan, actual inflation is 0.5%?
- Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is 22.7% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month?After a 1 year investment you receive 7.4% interest (nominal) from your bank. However, looking at how prices have changed, you soon realize that the real rate of interest was actually 3.4%. How much was inflation during that year? Enter your answer as a percentage, rounded to 2 decimals, and without the percentage sign ('%'). For example, if your answer is 0.02345, then enter 2.35Suppose you invest S11.570.00 into an account earming an interest rate of 2.484% compounded continuously for 2 yeart and thereafter earning an interest rate of 3.417% compounded weekly. How much money is in the account after 9 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)
- a) Assume that you deposit 1,000 TL in an account earning 13% annual interest for 3 months. What is the interest earned at the end of the 3rd month? b) Assume that you deposit 1,000 TL in an account earning 20% annual interest for 2 years. What is the accumulated interest at the end of the 2nd year? c) Please calculate how large deposit of 10,000 TL today will become at a compound annual interest rate of 10% for 5 years? d) Assume that you need 1,000 TL in 2 years. How much would you need to deposit today at a interest rate of 7% compounded annually? e) You can make an investment that will pay you 50 TL every year starting at the end of this year for the next five years and 1,000 TL at the end of the five years. If you require a 12% return, how much should you be willing to pay for this investment?Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)You will receive $100 from a savings bond in 2 years. The nominal interest rate is 8.40%. a. If the inflation rate over the next few years is expected to be 3.40%, what will the real value of the $100 payoff be in terms of today’s dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is the real interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c. Calculate the real payoff from the bond [from part (a)] discounted at the real interest rate [from part (b)]. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- 5. An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days. What is the % of Annual Effective Return? 6. If the monthly (periodically) interest is 1% for a one-month deposit, what is the Annual Effective Return?Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"? What is the balance in the account after 30 years? How much of this balance corresponds to "interest on interest"? (Round to the nearest cent.)If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?