Question 1

Monica finished her program at New Brunswick Community College on June 3 with Canada Student Loans totalling $6,800. She decided to capitalize the interest that accrued (at prime plus 2.5%) during the grace period. In addition to regular end-of-month payments of $200, she made an extra $500 lump payment on March 25 that was applied entirely to principal. The prime rate dropped from 5% to 4.75% effective September 22, and declined another 0.5% effective March 2. Calculate the balance owed on the floating rate option after the regular March 31 payment. The relevant February had 28 days.

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The answer of Monica finished her program at New Brunswick...

Question 2

A $100,000, 182-day Province of New Brunswick Treasury bill was issued 66 days ago. What will it sell at today to yield the purchaser 2.48% simple interest?

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The answer of A $100,000, 182-day Province of New Brunswick...

Question 3

Calculate missing value for the promissory note:

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The answer of Calculate missing value for the promissory note:
...

Question 4

Calculate missing value for the promissory note:

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The answer of Calculate missing value for the promissory note:
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Question 5

A $100,000, 90-day commercial paper certificate issued by Bell Canada Enterprises was sold on its issue date for $98,950. What annual simple interest rate of return (to the nearest 0.001%) will it yield to the buyer?

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The answer of A $100,000, 90-day commercial paper certificate issued...

Question 6

Calculate missing value for the promissory note:

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The answer of Calculate missing value for the promissory note:
...

Question 7

A $100,000, 91-day Province of Ontario Treasury bill was issued 37 days ago. What will it sell at today in order to yield the purchaser 3.14% simple interest?

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The answer of A $100,000, 91-day Province of Ontario Treasury...

Question 8

Calculate missing value for the promissory note:

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The answer of Calculate missing value for the promissory note:
...

Question 9

A $100,000, 90-day commercial paper certificate issued by Wells Fargo Financial Canada was sold on its issue date for $99,250. What simple interest rate of return will it yield to the buyer?

Accepted Answer

The answer of A $100,000, 90-day commercial paper certificate issued...

Question 10

A 168-day, $100,000 T-bill was initially issued at a price that would yield the buyer 4.19% simple interest. If the yield required by the market remains at 4.19%, how many days before its maturity date will the T-bill's market price first exceed $99,000?

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The answer of A 168-day, $100,000 T-bill was initially issued...

Question 11

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
...

Question 12

Calculate and compare the market values of a $100,000 face value Government of Canada Treasury bill on dates that are 91 days, 61 days, 31 days, and one day before maturity. Assume that the rate of return required in the market stays constant at 3% simple interest over the lifetime of the T-bill.

Accepted Answer

The answer of Calculate and compare the market values of...

Question 13

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
...

Question 14

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
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Question 15

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
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Question 16

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
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Question 17

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
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Question 18

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
...

Question 19

Over the past 35 years, the prevailing market yield or discount rate on 90-day T-bills has ranged from a low of 0.17% in February 2010 to a high of 20.82% simple interest in August of 1981. (The period from 1979 to 1990 was a time of historically high inflation rates and interest rates.) How much more would you have paid for a $100,000 face value 90-day T-bill at the February 2010 discount rate than at the August 1981 discount rate?

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The answer of Over the past 35 years, the prevailing...

Question 20

Calculate missing value for the promissory note:

Accepted Answer

The answer of Calculate missing value for the promissory note:
...

Quiz 7: Applications of Simple Interest

A $100,000, 182-day Province of New Brunswick Treasury bill was issued 66 days ago. What will it sell at today to yield the purchaser 2.48% simple interest?

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

A $100,000, 90-day commercial paper certificate issued by Bell Canada Enterprises was sold on its issue date for $98,950. What annual simple interest rate of return (to the nearest 0.001%) will it yield to the buyer?

Calculate missing value for the promissory note:

A $100,000, 91-day Province of Ontario Treasury bill was issued 37 days ago. What will it sell at today in order to yield the purchaser 3.14% simple interest?

Calculate missing value for the promissory note:

A $100,000, 90-day commercial paper certificate issued by Wells Fargo Financial Canada was sold on its issue date for $99,250. What simple interest rate of return will it yield to the buyer?

A 168-day, $100,000 T-bill was initially issued at a price that would yield the buyer 4.19% simple interest. If the yield required by the market remains at 4.19%, how many days before its maturity date will the T-bill's market price first exceed $99,000?

Calculate missing value for the promissory note:

Calculate and compare the market values of a $100,000 face value Government of Canada Treasury bill on dates that are 91 days, 61 days, 31 days, and one day before maturity. Assume that the rate of return required in the market stays constant at 3% simple interest over the lifetime of the T-bill.

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

Calculate missing value for the promissory note:

Calculate missing value for the promissory note: