# For excellentassignments only

1 Calculate the interest on $17,500 at 5.25% simple interest for 1 year and 5 months (2)

2 Calculate the total amount to be repaid on a loan of £19,550 at 6.7% simple interest for 150 days (3)

3 What is the simple interest rate if $12,500 earns $950 over 21 months? (3)

4 How long will it take to earn $3,300 on a deposit of $17,000 at 7.6% simple interest? (2)

5 Anita pays 21% of herstudent allowance in university fees and spends 18% on food and drink. Her rent is CHF 1,700 per month which is 24% of her allowance. What is her monthly allowance and how much does the university charge a year if she pays fees for 10 months? (4)

6 You invest in a bond with a coupon of 6.25% at a price of 98.4%. What is your income yield? (2)

7 You hold a corporate zero coupon bond which matures (at 100%) in one year. The company pays 2.6% above LIBOR (London Inter Bank Offer Rate) for its borrowing.12 month LIBOR is currently 5.7%. What is the sale price of the bond today? (3)

8 If the CPI rises from 147 to 151 and you invest at 7.125% what is your real interest rate? (3)

9 If you receive $100 interest on a deposit of $1,400 after a year and the inflation rate is 2.2%, what is your net profit in real terms? (3)