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What is the annual percentage yield for money

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Reference no: EM13881918

1. What is the purchase price of a 39-week “T-bill” (US Treasury note) with a maturity value of $4500 that earns an annual interest rate of 3.25 % ?

2. How long (in years) will it take $1000 to triple if it is invested at 7.0% compounded continuously? Round answer to nearest tenth of a year

3. What is the annual percentage yield (APY) for money invested at an annual rate of 4.45% compounded daily?

4. Advanced Insurance Company offers a “college education” annuity that pays 7.2% compounded quarterly. What equal quarterly deposit should be made into this annuity in order to have $200,000 for college expenses in 18 years?

5. Mark makes his first deposit of $1500 into a Roth IRA earning 6.5% interest compounded annually at age 36. He continues to make an annual deposit of $1500 until he is 60 (25 deposits in all). With no additional deposits after age 60, the money in Mark’s Roth IRA continues to earn 6.5% interest compounded annually until he retires at age 66. How much money is in Mark’s Roth IRA when he retires?

6. The Smith’s family takes out a 30-year mortgage at 4.25% compounded monthly after putting 20% down to buy a home valued at $220,000.

Find  a. the monthly payment

b. the unpaid balance after 10 years

c. the equity the family has built up in its house after 20 years of monthly payments, if the house’s net market value 20 years from now is $300,000

Reference no: EM13881918

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