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Ch9 Question and answers verified to pass Ch. 6 Quiz PFM Amount of interest = Principal x Interest x Time 9,000 x .015 x (120/365) = $44.38 in interest - correct answer Jill placed $9,000 in a 120-day CD that offered an annualized return of 1.5%. How much interest will she earn on this CD? ...

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  • November 15, 2024
  • 2
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • ch9
  • ch9 question and answers verified to pass

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Ch. 6 Quiz PFM
Amount of interest = Principal x Interest x Time
9,000 x .015 x (120/365) = $44.38 in interest - correct answer ✔Jill placed
$9,000 in a 120-day CD that offered an annualized return of 1.5%. How much
interest will she earn on this CD?


1,270 x .0299 = 37.973
The total amount after one year is = 1,270 + 37.973 = 1,307.973
But MMF imposes fees that will cost $29. After one year, he can get:
1,307.973 - 29 = $1,278.97 - correct answer ✔Bart is a college student who
has never invested his funds. He has saved $1,270 and has decided to invest
the funds in a money market fund with an expected annual return of 2.99%.
Bart will need the money in one year. The MMF imposes fees that will cost
Bart $29
at the time he withdraws the funds in one year. How much money will Bart
have in one year as a result of this investment?


Dollar return on T-bill = $48,753 - $47,239 = $1,514
Laurens return on the T-bill = return / purchase cost = $1,514 / $47,239 =
3.21% (rounded) - correct answer ✔Lauren purchased a $50,000 T-bill for
$47,239.
A few months later, Lauren sold the T-bill for $48,753.
What was Lauren's return on the T-bill?


Amount of interest = Principal x Interest x Time
1,800 x .0378 x (6/12) = $34.02 - correct answer ✔Lisa is depositing $1,800
in a six-month CD that pays

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