Q1: The nominal annual interest rate on a mortgage is 10%. The effective annual rate on that mortgage is 10.38%. The frequency of compounding is most likely:

1-monthly.

2- daily.

3- quarterly.

4- semi-annual.

Q2: our client invests $5 million in security that matures in 6 years and pays a 6 percent annual interest rate compounded annually. Assuming no interim cash flows, which of the following will most likely be the value of the investment at maturity?

8.030.000

10.860.000

7.095.000

9.255.000

Q3:A fixed-income instrument with a stated annual interest rate of 15% and offers semi-annually compounding, the effective annual rate is closest to:

16.11%.
		15.56%
		15.95%
		15.00%

Q4: The present value of $12000 to be received three years from today, assuming a discount rate of 9% compounded every 4 months, is closest to:

		16050.00$
		9192.00$
		17610.00$
		10515.00$

Q5: Haley Hopkins plans to deposit $30,000 into her account for the purpose of buying a house after 10 years from now which cost at that time $65,730 Assuming she does not make any withdrawals, how much the annual interest rate she should ask the bank to use if you know that the interest compounded on a semi-annual basis: