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Steve invested $100 two years ago at 10 percent interest. The first year, he earned $10 interest on his $100 investment. In the second year he also earned $10 in interest. His $10 interest earnings in years 1 and 2 are referred to as: A. bonus income B. simple interest C. present value interest D. interest on interest E. free interest If the APR on your credit card balance is 15.34%, with required payments made monthly, then compute the actual interest that you will end up paying, if you require 10 years to pay off your balance? A. 17.10% B. 15.59% C. More information required D. 16.08% E. 16.46% On August 12008 , you take out a mortgage in the amount of $357,000 from Bank of America. Bank of America is charging you an APR of 8.5%. You are to repay this loan over a period of 30 years. The Bank expects you to make monthly payments at the end of each month. Total interest payment for 2008 is? A. $16,320.33 B. $14,333.77 C. $16,327.27 D. $12,628.32 E. $15,621.45 The outstanding bonds of "Jacksen Global Freight" provide semiannual coupon payments of $40 and have a current market price of $1,054. The bonds have a face value of $1,000. What yield on these bonds? A. More information required B. 4.00% C. 8.00% D. 7.59% E. 3.79% The Bank expoch you to maki monthly payments at the end of each month. What is the principal amount repaid during 2008 ? 2,81,22732 4.31,00078 0.5130121 E. 81,00025 An investment bank promises an investor that an investment of $40,000 will earn an of APR of 8.25% with continuous compounding. What is the APY that the investor can earn? A. 8.54% B. 8.60% C. 8.25% D. more information is needed E. none of the above A Municipal Bond (MUNI) pays $166.66 per year forever. If the appropriate interest rate is 7.25%, how much will pay to buy this instrument? A. $2,298.76 B. $1,011.87 C. impossible to compute, we need to know the investment horizon. D. $1,324.89 E. $1,666.67 The Bank expects you to make monthly payments at the end of each month. amount refinanced. A. $355,233.67 B. $353,107.48 C. $333,333.33 D. None of the options provided. E. $320,543.34 This morning, you borrowed $387,000 to buy a house. The mortgage rate is 4.46 percent. The loan is to be repaid in equal monthly payments over 30 years. The first payment is due one month fro today. Compute the interest component for the 45th monthly payment. A. $2,696.90 B. $604.35 C. $1,347.33 D. $1,872.34 E. $1,951.68 mortgage in the amount of $357,000 from Bank of America. Bank of America is charging you an APR of 8.5%. You are to repay this loan over a period of 30 years. amount refinanced. A. $350,288.64 B. $350,233.24 C. $351,618.27 D. None of the options provided. E. $350,222.23 You invest $6,752.45 for 21 months at an APR of 3.56%, compounded daily. What is the Future Value of your investment? A. 56,766.29 8. $14,260.15 C. $10,962.07 0. $8,019.26 E. $7,186.49 The Carter Company's bonds mature in 10 years. They have a par value of $1,000 and a coupon rate of 8%. These bonds are currently yielding 9%. Assuming annual coupon payments, what price of these bonds? A. 5876.95 B. 5935.82 C. $928.78 D. $998.75 E. $955.28 Brown Enterpnses issued 15 -year 8.25% coupon bonds 6 years ago. These bonds are currently selling for $1,045. Assuming semiannual coupon payments, what is their yield to maturity? A. 6.21% B. 6.96% C. 7.61% D. 8.05% E. 7.55% You deposited $1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue school, so you close out your account. How much money will you receive? A. $1,428.25 approx. 8. $1,126.16 approx. C. $1,171 approx. D. $4,161.14 approx. E. $4,735.23