Reference no: EM132829966

Problem 1: A certificate of deposit with a principal of $3,000 that earns 6 percent annual interest has a maturity of three months. What is the interest at maturity on this account?

Problem 2: A savings account at Big Bank earns 2 percent interest, compounded monthly. If the initial deposit is $5,000, what is the value of the account at the end of 2 months?

Problem 3: A one-year Treasury bill with a value at maturity of $10,000 on September 30 is selling at a discount rate of 1.5 percent. What is the purchase price of the bill if it is purchased on June 30?

Problem 4: What is the interest earned on a five-year, $50,000 investment at 4 percent interest, compounded annually?

Problem 5: A hospital had $5,000,000 in donations, which is invested in a 5 percent coupon bond with a maturity of five years from the date of purchase. The market interest rate at the time of the purchase was 4 percent. What is the semiannual interest payment that the hospital will receive?