Chapter 6 2 You are depositing 4500 in a 5 year CD that pays 5 interest How

# Chapter 6 2 you are depositing 4500 in a 5 year cd

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Chapter 6 2)You are depositing \$4500 in a 5 year CD that pays 5% interest. How much interest will you accrue if you hold the CD until maturity? Show work. 3)You have invested \$1,000 in a 36 month CD that pays 2.25%. How much interest will you receive at maturity? Show Work. 4) You have \$30,000 excess cash to invest after you fully funded your emergency fund. A 20,000 T-bill can be purchased (maturing to value at \$30,000 after one year), or you can buy three --\$9500 CD that can be purchased with a guaranteed 6% return after 12 months. Which will give a better return (in percentages)? Show work. Ans: T-Bill will give 30000-20000/20000= 50% return and three CD’s will give a total of 18% return. So the T-Bill will give 32% more return.
Spring 2018 Personal Finance TAKE HOME EXAM 2 5) You purchase a \$10,000 T-bill for \$7,000. A few months later you sold the T-bill for \$8,500. What was the return on the t-bill? Show work. Ans: Return= 8500-7000/7000*100 = 21.4% Chapter 7—ASSESSING AND SECURING YOUR CREDIT 1) With the recent hacking of Equifax, identity theft is on the rise. It is more important than ever to make sure that you constantly monitor your accounts for any suspicious charges or changes to your accounts. Every bank, credit card company or financial institution report to at least one of the 3 credit bureaus. What is the time limit and liability, if you are a victim of: a) banking fraud? 2) You decided to go and apply for a credit card at your local financial institution.

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