it's about time
This is the 'approximate' time in days from March 19, 2016 to December 26, 2016.
277 days
The amount I need to invest today into an account paying 5% simple interest so that I will have $5,000 in this account in 4 years.
$4,166.67
What does TVM stand for in finance?
Time Value of Money
If I invest $1000 for 1 year and 'earn' $50 on my investment, what is my annual rate of return?
5%
If I bid 87 on a $1,000,000 treasury bill, how much am i agreeing to pay for the T-Bill?
$870,000
This is the exact time in days from March 19, 2016 to December 26, 2016.
282
In 4 years, Sally will need $30,000 for her first year of college. If she places all the money she now owns, a total of $20,000 into an account paying 6.25%. She will still need to borrow this amount when she starts college.
$5,000
What is called when you start with the future value and move backwards in time?
Discounting
If you are charged $20 to borrow $200 for 1 month, what is the annual percentage interest rate?
120%
If you buy a 1 year treasury bill with a face value of $100,000 at a bid of 80, what is your rate of return?
20%
The number of year, rounding to 3 decimal places, from March 19, 2016 to December 26, 2016 using ''Bankers Rule'.
0.786 years
The 4th Bank of Belton is charging 7% on an unsecured loan. Marry owes $21,000 on December 1, 2004 but decides to pay off the loan early on February 1, 2004. She owe this amount.
$19,004.52
If you could invest money at an annul rate of 10% would you rather have $500 now or $550 in 9 months?
$550 in 9 months
if you are charged $1 to borrow $10 for 1 day, what is the implied annual interest rate (using the Bankers Rule)?
36%
If you buy a 180 day $500,000 treasury bill but then sell it to a third party after 90 days who demands a 12% rate of return, how much will you sell the t-bill for? Round your answer to the nearest penny.
$485,436.89
The length of time in years, required for an investment of $1,000 growing at a simple interest rate of 10% to double in value.
10 years
Larry is leasing land for his soccer club and incurred debts of $6,000 due on 8/1/03 and $4,000 due on 10/2/03. On 6/15/03 Larry has this amount of cash to pay off both debts.
$9,872.31
Which investment results in more money in 1 year: $5000 growing at 8% or $7000 growing at 6%?
$7000 growing at 6%
Why would someone be charged a higher interest rate for the same loan? (same amount and same time)
Higher risk of default or lower credit score.
Which investment pays a higher rate of return
A 180 day bond that pays 8% APR or a 180 day bond bought with a bid of 92?
180 day bond bought with a bid of 92
The length of time in days (using the usual Bankers Rule) required for an investment of $1,000 to grow to a value of $1,075.
270 days
No Worry Furniture Finance Corporation has offered you two ways to buy their beautiful lounge set. The first option is to pay $3,000 now in cash. Option two is to pay $3,200 in 6 months. You have a bank account where you can get 18% simple interest. This is the option you choose and the amount you save in cash. (cash always means present value)
Pay in 6 months and save $64.22
If after cleaning your attic your found a bond bought on 1 September 1923 for $1,000 and paying 8% how much would it be worth on 1 September 2023?
$9000
What is an "excessive" interest called?
usury
If you bought a one year bond with a bid of 80 what would be your rate of return?
25%