# accounting and finance assignment

**Questions:**

- If you invest $1,500 in a bank account, which pays simple interest at a rate of 3.5% per annum, for 18 months, how much interest will you receive when you withdraw the funds at the end of the term of investment?

2. If you invest $1,500 in an account that pays 5% pa, simple interest, what will be the value of the account at the end of 40 months?

- You invested $2,500 into a term deposit account for 90 days, at the end of which there was $2,530 in the account. What simple rate of interest was paid on the account?

- If you invest $1,500 in a bank account, which pays 3.5% per annum interest, compounding annually, what will be the value of the account at the end of 18 months?

- If you invest $1,500 in a bank account, which pays 3.5% per annum interest, compounding monthly, what will be the value of the account at the end of 18 months?

- If you want to save $7,000 at the end of 5 years, in an account that pays 4% pa, compounded annually. How much will you need to invest into the account at the beginning of the 5 year period?

- Interest is paid monthly at a monthly rate equal to 0.35%. What is the nominal rate per annum on the account?

- If you are offered a nominal amount equal to 8% pa, compounding half yearly, what is the effective interest rate per annum?

- ABC Ltd issued a 3-year bond with a face value of $100, paying a half yearly coupon of $2.50. However, no sooner had the bond been issued than interest rates on similarly rated debt rose to 8% per annum. What would be the value of the bond after the interest rate rise?

- ABC Ltd issued a 3-year bond with a face value of $100, paying a half yearly coupon of $2.50. However, no sooner had the bond been issued than interest rates on similarly rated debt fell to 4% per annum. What would be the value of the bond after the interest rate fall?