Q: A $25,000, 91-day Province of Newfoundland
A $25,000, 91-day Province of Newfoundland Treasury bill was originally purchased at a price that would yield the investor a 5.438% rate of return if the T-bill is held until maturity. Thirty four day...
See AnswerQ: A conditional sale contract requires two payments three and six months after
A conditional sale contract requires two payments three and six months after the date of the contract. Each payment consists of $1900 principal plus interest at 12.5% on $1900 from the date of the con...
See AnswerQ: An assignable loan contract executed 3 months ago requires two payments of
An assignable loan contract executed 3 months ago requires two payments of $3200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is offe...
See AnswerQ: Ruxandra’s Canada Student Loans totalled $7200 by the time she finished
Ruxandra’s Canada Student Loans totalled $7200 by the time she finished Conestoga College in April. The accrued interest at prime plus 2.5% for the grace period was converted to principal on October 3...
See AnswerQ: George borrowed $4000 on demand from CIBC on January 28 for
George borrowed $4000 on demand from CIBC on January 28 for an RRSP contribution. Because he used the loan proceeds to purchase CIBC’s mutual funds for his RRSP, the interest rate on the loan was set...
See AnswerQ: Ms. Wadeson obtained a $15,000 demand loan from
Ms. Wadeson obtained a $15,000 demand loan from TD Canada Trust on May 23 to purchase a car. The interest rate on the loan was prime plus 2%. The loan required payments of $700 on the 15th of each mon...
See AnswerQ: Mayfair Fashions has a $90,000 line of credit from
Mayfair Fashions has a $90,000 line of credit from the Bank of Montreal. Interest at prime plus 2% is deducted from Mayfair’s chequing account on the 24th of each month. Mayfair initially drew down $4...
See AnswerQ: Duncan Developments Ltd. obtained a $120,000 line of
Duncan Developments Ltd. obtained a $120,000 line of credit from its bank to subdivide a parcel of land it owned into four residential lots and to install water, sewer, and underground electrical serv...
See AnswerQ: A $100,000, 182-day Province of New
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 4.48%?
See AnswerQ: A $100,000, 90-day commercial paper certificate
A $100,000, 90-day commercial paper certificate issued by Bell Canada Enterprises was sold on its issue date for $98,950. What annual rate of return (to the nearest 0.001%) will it yield to the buyer?...
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