Question: ( 1 ) Consider a 1 - year, $ 5 0 , 0 0 0 C D . ( a ) What is its value

(1) Consider a 1-year, $50,000CD.
(a) What is its value at maturity if it pays 5.25 percent annual interest?
(b) What would be the future value if the CD pays 4 percent? What if it pays 6.5 percent?
(c) The Fourth National Bank of Oakland offers CDs with a 5.25 percent nominal Interest rate but compounds semiannually. What is the effective rate on such a CD? What would its future value be?
(d) Golden Gate Trust offers 5.20 percent CDs with dally compounding. What is such a CD's effective annual rate and its value at maturity?
(e) What nominal rate would the Fourth National Bank have to offer to make iss semiannual compounding CD competitive with Golden Gatels dallycompounding CD?
( 1 ) Consider a 1 - year, $ 5 0 , 0 0 0 C D . (

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