a) WR Media issues a $500,000 piece of commercial paper to mature on June 1, which...

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a) WR Media issues a $500,000 piece of commercial paper to mature on June 1, which was purchased on March 3 by an investment firm. Determine the purchase price if the discount rate is 11.25%. (3 marks) b) $800 is deposited on February 4, 1994. Determine the time taken for it to be worth at least $1,200 at 12% compounded continuously. (4 marks) c) Determine the discounted value of an ordinary simple annuity of $1,000 per year for 5 years if money is worth j12 = 6%. (4 marks) a) WR Media issues a $500,000 piece of commercial paper to mature on June 1, which was purchased on March 3 by an investment firm. Determine the purchase price if the discount rate is 11.25%. (3 marks) b) $800 is deposited on February 4, 1994. Determine the time taken for it to be worth at least $1,200 at 12% compounded continuously. (4 marks) c) Determine the discounted value of an ordinary simple annuity of $1,000 per year for 5 years if money is worth j12 = 6%. (4 marks)

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a To determine the purchase price of the commercial paper we need to calculate the discount on the f... View the full answer