1. Calculate the interest on $19,250 at 5.75% simple interest for 1 year and 5 months (2)

2. Calculate the total amount to be repaid on a loan of 17.725 at 6.4% simple interest for 320 days (3)

3. Cindy pays 21% of her income in rent and spends 17% in food. Her rent is CHF 1,600 per month. What is her monthly salary and how much does she spend on food each month? (4)

4. You invest in a three-year bond with a coupon of 6% at a price of 97.5%. What is your income yield? (2)

5. You hold a corporate zero-coupon bond which matures (at 100%) in two years. The company pays 260 bp above LIBOR (London Inter Bank Offer Rate) for its borrowing. 2-year LIBOR is currently 2.7%. What is the sale price of the bond today? (3)

6. What is 8.25% p.a. simple interest compounded quarterly and monthly? (2)

7. What is 8% compounded continuously? (2)

8. What is the combined value today of $3,000 in two years and $7,000 in three years at a constant discount rate of 8%? (4)

9. If the CPI rises from 167 to 174 and you invest at 7.5% what is your real interest rate? (3)

10. What is your account balance after investing 13,000 at 4.35% for five years with annual compounding? (3)