quiz01-soln - NAME: 1‘4 17m; L NS W' Ed? 1‘ Student...

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Unformatted text preview: NAME: 1‘4 17m; L NS W' Ed? 1‘ Student Number: 0 MA 170 QUIZ 1 Fall 2010 Investor A buys a $10,000 364-day T-bill for $9,820.77. (a) If Investor A were to hold the T—bill to maturity, what rate of interest would she earn? (b) After 206 days, Investor A sells the T-bill to Investor B at a simple discount of2. 10%. What is the selling price? (c) What rate of interest did Investor A earn on the T-bill over the 206 days she held it? 6 . Note: 7 marks each part. Total mark w1ll be recorded out of 17. Round dollar amounts to the nearest cent. Give interest rates as percentages, rounded to two places of decimals. 51390-1 1 IMWMM N a“) J ,, i, M2...— 4 ‘ _ 6‘7 1033c :.q3}o.7~1(1t ( 15") 2,6: r~ "We-1).; 0 013300» almvh ' 7,5” £132,011» ANSWER(a)__lifl ’W N WfliaOUJ (is) r' Sh Putnam,_._.i_h.nr.__..,.._._-... ‘ (I 01105;; 20¢. > 775” 1 “130%; ’7 6‘ g - ‘qfiO‘l lu ANSWER(b)_g‘2M,_Jt/‘ , . >031 WWI“) m g ; mwfl «a L .7“ 206 r. ,oISci‘séZm- ANSWER(c) J-‘i‘l 01. Mar M MKS 0K. MAL om‘ cf Bay-,6]? W -1 QML NAME: m 0 DE L c Student Number: + MA 170 QUIZ 1 Fall 2010 Investor A buys a $25,000 182—day T-bill for $24,775.16. (a) If Investor A were to hold the T-bill to maturity, what rate of interest would she earn? (b) After 84 days, Investor A sells the T-bill to Investor B at a simple discount of 1.90%. What is the selling price? (c) What rate of interest did Investor A earn on the T-bill over the 84 days she held it? Notei/marks each part. Total mark will be recorded out of 17. Round dollar amounts to the nearest cent. Give interest rates as percentages, rounded to two places of decimals. ) _ N W . 3 0‘ ’ 7m 1H H WW I 3 ” l + ' fligjj;j::ff,.“Nu—Wm—mM-q‘ My ’ - ‘13 m Disco.) v 7"779” (1" i” 726‘? o ’36€( W ——i) .5 “olgtwa V1 “l” X, 774M IS 1‘ 7 ; ANsWER<a>__wl . Wm‘gsoouuu L " A 1M-~m_ww_-.ftw-___m.g__,_+ E; L O 3H@.0\3.__,:;431 , 9‘3 - ’2 6mm (L 30“” 36“? :— Wall 341.11 T ANSWEMb) X 14' 371.»: 1 .3316 fish.“ (0 S“ ((1 I ’ H 3"? i q MIMWWM 211%71147': )‘11’75 ll(1+v%276,) 0 3H r'" 1‘1719JC ‘ ’0 —. Cl» 0‘10“ ‘ ANSWER (c)_.l._7‘\i_7° '/‘~ U)“ Mar MMch (9K . Wan/(flng EM“, Eyny emf: ...
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This note was uploaded on 03/03/2012 for the course MATH 170 taught by Professor F.vinette during the Fall '11 term at Wilfred Laurier University .

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quiz01-soln - NAME: 1‘4 17m; L NS W' Ed? 1‘ Student...

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