You buy a Treasury note for $960. Instructions: Round your answers to two decimal places. a. If you receive a payment of $40 every six months, then the annual rate of return is: b. If you receive a payment of $30 every six months, then the annual rate of return is: c. If you receive a payment of $45 every six months, then the annual rate of return is: | %. %. %.

You have really gone above and beyond in spending on your fraternity initiation party and ran up $11, 000 on your parent's credit card. You apologize to them and promise to pay $350 per month towards paying off the balance fully. You know that the credit card interest rate is 24%. How long will it take you to fully pay off your good times? a. A bit over 4 years b. About 2 and a half years c. About 3 years d. It depends

Suppose that you are considering an investment, which would require you to pay $1,000 up front (today), and you would receive a payment of $100 per year, for 5 years, beginning one year from now. One year after your fifth payment, you would then have $800 paid to you as a final payment. Assume that the interest rate is equal to 5%. Round all answers to two decimal places. 5. Calculate the Present Value (PV) of the cost and each of the payments for the investment. Does this investment have a positive or negative present value? Should you make this investment? 6. How much would the initial cost ($1,000) need to change for you to be exactly indifferent about this investment? (i.e. you receive the same return for making this investment as you do for not making this investment?)

How much should they save annually for the next three years if they want to build up Joseph's college fund to $31,000, assuming a 5 percent rate of return and ignoring taxes on the interest?