Question
1) An online business wishes to invest $45000.00in a short term deposit.The bank offers 1.3% fora one-year term investment 1.1% for a six-month term. a)
1) An online business wishes to invest $45000.00in a short term deposit.The bank offers 1.3% fora one-year term investment 1.1% for a six-month term.
a) How much will the business receive after one year if itinvests at the one-year ratefor one year?
b)How much will the businessreceive after one-year ifthe $45,000 is invested for sixmonthsand then the principal and interest earned is reinvested for another six-month term?
2)An obligation of $10,000 is to be repaid by equal payments due in 90days and 180 days. What is the amount of equal payments if money is worth 6.5% and the focal date is today?
3) Scheduled payments of $1010 due five months ago and $1280 due today are to be repaid by a payment of $615 in four months and the balance in seven months. If money is worth 7.75% p.a. and the focal date is in seven months, what is the amount of the final payment?
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