10.6-10.10 QuizB - 1 8 33 a share and paid a 1.5%...

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10.6-10.10 Quiz Name:_________________________________ Money Management Date:_____________________Period:______ SHOW ALL WORK!! 1. You invest $30,000 in a 4-year certificate of deposit that earns interest at a rate of 6.5% compounded daily. a. What is the maturity value? _________________________ b. How much interest was earned at maturity? _________________________ c. What is the annual yield? _________________________ 2. You invest $5000 in a 2.5-year certificate of deposit that earns interest at a rate of 7.25% compounded daily. What is the annual yield? _________________________ 3. You own 500 shares of stock for which you paid $29 a share and a 3% commission. The stock is earning an annual dividend of $1.75 a share. a. What would you receive in annual dividends? _________________________ a b b. What is the annual yield? _________________________ 4. You purchased 400 shares of stock at $
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Unformatted text preview: 1 8 33 a share and paid a 1.5% commission. a. What was the cost of the stock? _________________________ b. What was the total paid? _________________________ 5. You have 400 shares of stock. Recently a stockbroker offered you $52.80 per share for control of the stock. You purchased the stock for $43.20 per share. You paid a 2.2% commission when you bought the stock. You will pay a 2.5% commission when you sell the stock. What would your profit or loss be if you sold now? _________________________ 6. You are purchasing a $12000 savings bond at a quoted price of 1 2 93 . It pays 7.5% annual interest. a. What is the cost of the bond? _________________________ b. What is the annual interest earned? _________________________ c. What is the annual yield? _________________________...
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This note was uploaded on 01/24/2012 for the course HUM 9999 taught by Professor Variousprofessorslisted during the Summer '06 term at Abilene Christian University.

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