Question: 5) When a consumer gets a loan from a bank, the benchmark interest rate charged to them is called the ___________________________ rate. 6) Mohammed and
5) When a consumer gets a loan from a bank, the benchmark interest rate charged to them is called the ___________________________ rate.
6) Mohammed and Vanessa are both taking out student loans to complete their Ph. D in Business. They both go to TD Bank to apply for a loan. Mohammed has a credit rating of 800, while Vanessa has a credit rating of 650. Who would get the lower interest rate? _________________ Why? _____________________________________________________________________________________
7) Madalena borrows $300,000 from TD Bank at an annual interest rate of 8%. What is the amount of interest she will pay per year??
8) Jose has a 25,000 loan with a 5% annual interest rate, with a payment due April 1 st. What is the interest amount due on the loan?
12) Angela buys 500 shares of McDonalds stock on 5/1/2000 at $120 and sells it on 12/31/2005 at $150 per share.
What is Angelas return on investment? _________________________
What is Angelas Capital Gain? _________________________________
13) Rita buys 100 shares of Apple stock at $200 and sells it one year later at $218 per share. Apple also paid a dividend of $2.00 per share to all shareholders that year.
What is Ritas capital gain?
What is the dividend yield on the stock?
What is the total amount that Rita received from Apple in dividends?
What is Ritas TOTAL return on investment?
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