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- A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?You plan to invest an amount of money in a five-year certificate of deposit (CD) at your bank. The stated interest rate is 12%, compounded Quarterly. How much must you invest if you want the balance in the CD account to be $7,500 in five years?Assume you deposit $5,900 at the end of each year into an account paying 11.75 percent interest. a. How much money will you have in the account in 21 years? b. How much will you have if you make deposits for 42 years?
- Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year, compounded annually. How much interest on interest will you have earned after 3 years?Your bank offers 3 percent annual interest onsavings deposits. If you deposit $560 today, howmuch interest will you have earned at the end ofone year?$52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested in the account, how much will the bond be worth in 5 years? Round your answer to the nearest dollar.
- You wish to purchase a $1,000 bond from a friend who needs the money. There are 7 years remaining until the bond matures, and interest payments are quarterly. You decide to offer $750.08 for the bond because you want to earn exactly 16% per year compounded quarterly on the investment. What is the annual bond rate of interest?You purchased a bond and will receive $500every six months for the next five years. If the market rateof interest is 4%, what is the present value of your stream ofinterest payments? (a stream of equal interest payments isconsidered an annuity).Please do both correctly, I'll rate the answer Question: (i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate? (ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount?
- Find the interest rates earned on each of the following:a. You borrow $720 and promise to pay back $792 at the end of 1 year.b. You lend $720 and the borrower promises to pay you $792 at the end of 1 year.c. You borrow $65,000 and promise to pay back $98,319 at the end of 14 years.d. You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years.You decide to invest $7,500 into an account that pays 1.1% annual compound interest. Write an equation for the balance of the account (B) after t years.You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay quarterly interest of 3% (compounded quarterly). What is the value of this deposit at the end of year 3? A. 11,560.00 B. 15,351.95 C. 9,853.83 D. 12,118.97