1. Where in finance would APR or EAR concepts apply? How do they apply to the Time Value of Money concepts we are covering this week?
2. A U.S. investor purchased a C$100,000 Canadian dollar CD 6 months ago at an APR of 7%. The Canadian spot rate when the investment was made was 1.367 C$/USD$. What was the U.S. dollar cost of the investment and what is the total amount of Canadian investment today?
3. Suppose the current exchange rate between U.S. Dollar and Euro is $1.355/€. How many Dollars can one Euro buy?
4. While Mary Corens was a student at the University of Tennessee, she borrowed $12,000 in student loans at an annual interest rate of 9%. If Mary repays $1,500 per year, then how long (to the nearest year) will it take her to repay the loan?