Internet Application Problems


1		Most financial institutions post the current interest rates they pay on savings and investments products on their Web sites. For example, visit the Royal Bank Financial Group page. This page is an index that links to detailed rate schedules for each category of deposit account, investment product, and loan.



2		Current rates of return (or "yields") on T-bills and commercial paper are also posted on the Bank of Canada's web site.



3		An example of a personal line of credit is TD Bank's Select Line described at its web site. From this site you can link to the Select Line Calculator which calculates the minimum payment (the greater of $50 or 3% of the outstanding balance) on a principal amount that you enter. Do a manual calculation to confirm TD's calculated payment (for a 30-day month).



4		The Price of Redeemability from the Royal Bank Financial Group page links to the rate pages for "Redeemable GICs" and ""Non-Redeemable GICs". For each type of simple interest investment, how much interest will you earn on $10,000 invested for 100 days? How much interest will you earn on the Redeemable GIC if you redeem it after: (i) 29 days? (ii) 31days?

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