Chapter 12:
Investments
1.
Ray Vaughn invests $1,500 in a 1-year certificate of deposit that earns interest at an annual rate of 7 percent compounded monthly. The amount per $1.00 is 1.072290. How much interest will he earn at the end of one year?
a.
$60.00
b.
$105.00
c.
$108.44
d.
$1,608.44
2.
Tina Mendoza invested $2,000 in a certificate of deposit for 3 years. The certificate earns interest at an annual rate of 7.50 percent compounded quarterly. The amount per $1.00 is 1.079781. What is the effective annual yield to the nearest thousandth of a percent?
a.
0.079%
b.
0.798%
c.
7.978%
d.
8.098%
3.
Mary Beth Healey purchased 50 shares of stock at $23.50 per share. Her Internet online broker charged her a $14.95 commission. What is the total amount that she paid for the stock?
a.
$427.50
b.
$747.50
c.
$1,175.00
d.
$1,189.95
4.
Geoffrey Richards bought 100 shares of stock at $32 per share. The company paid annual dividends of $0.74 per share. What is the annual yield to the nearest hundredth of a percent?
a.
2.31%
b.
3.20%
c.
4.32%
d.
7.40%
5.
Aisha Knox paid a total of $1,500 for 75 shares of stock. He sold the stock for $22.50 a share and paid a sales commission of $49.00. What is the profit or loss from the sale?
a.
$138.50 loss
b.
$138.50 profit
c.
$236.50 loss
d.
$236.50 profit
6.
Claire Hofbauer purchased a $1,500 bond at the quoted price of 87½. The bond paid interest at a rate of 5.5 percent. Find the annual yield to the nearest hundredth of a percent.
a.
5.50%
b.
6.29%
c.
15.91%
d.
17.14%
7.
Gary Andreassen invests $2,000 in a 1-year certificate of deposit that earns interest at an annual rate of 8 percent compounded monthly. The amount per $1.00 is 1.082999. How much interest will he earn at the end of one year?
a.
$103.97
b.
$160.00
c.
$166.00
d.
$180.50
8.
Elizabeth Houston purchased 125 shares of stock at $18.50 per share. Her Internet online broker charged her a $19.95 commission. What is the total amount that she paid for the stock?
a.
$2,292.55
b.
$2,332.45
c.
$2,493.75
d.
$2,512.25
9.
Jamal Anderson bought 50 shares of stock at $28 per share. The company paid annual dividends of $0.52 per share. What is the annual yield to the nearest hundredth of a percent?
a.
0.54%
b.
1.04%
c.
1.79%
d.
1.86%
10.
Nelson Connors purchased a $2,500 bond at the quoted price of 89½. The bond paid interest at a rate of 6.5 percent. Find the annual yield to the nearest hundredth of a percent.
a.
7.26%
b.
7.78%
c.
8.45%
d.
10.50%
Ch. 1-5
Ch. 6-10
Ch. 11-15
Ch. 16-20
Ch. 21-23
Ch. 1
Ch. 2
Ch. 3
Ch. 4
Ch. 5
Ch. 6
Ch. 7
Ch. 8
Ch. 9
Ch. 10
Ch. 11
Ch. 12
Ch. 13
Ch. 14
Ch. 15
Ch. 16
Ch. 17
Ch. 18
Ch. 19
Ch. 20
Ch. 21
Ch. 22
Ch. 23
