FIN-210 Topic 3 Chapter 6 Financial Planning Problems Assignment
Chapter 6 Financial Planning Problems
Complete Problems 2, 3, 5, 6, 9, and 11 in Chapter 6 of the textbook.
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2. Interest Earned. Lisa is depositing $2,500 in a six month CD that pays 4.25% interest. How much interest will she accrue if she holds the CD until maturity?
3. Value of CD. Travis has invested $3,000 in a three month CD at 4%. How much will Travis have when the CD matures?
5. T-bill Return. Troy paid $9,600 for a T-bill with a face value of $10,000. What is Troy’s return if he holds the T-bill to maturity?
6. MMF Value. Bart is a college student who has never invested his funds. He has saved $1,000 and has decided to invest it in a money market fund with an expected return of 2.0%. Bart will need the money in one year. The MMF imposes fees that will cost Bart $20 at the time he withdraws his funds. How much money will Bart have in one year as a result of this investment?
9. Annualized T-bill Rate. Brenda purchased a $30,000, 90-day T-bill for $29,550. What will Brenda’s return be when the T-bill matures? What will her annualized rate be?
11. Investment Return. Thomas can invest $10,000 by purchasing a 1-year T-bill for $9,275, or he can place the $10,000 in a 12-month CD paying 8%. Which investment will provide a higher return? In addition to return, what else should Thomas consider when making his investment decision?
Course: FIN-210 Personal Finance
School: Grand Canyon University
- 16/05/2021
- 30
