User Account

All Pages

Calculate the interest earned on the savings account

Assignment Help Accounting Basics
Reference no: EM133106763

Question - Compare investment alternatives - A friend has $1,000 that he has saved from his part-time job. He will need his money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 1.10% interest or to lend it to Victor. Victor has promised to repay $1,040 after six months.

Required -

a. Calculate the interest earned on the savings account for six months.

b. Calculate the annual rate of return if the money is lent to Victor.

c. Which alternative would you recommend?

Reference no: EM133106763

Questions Cloud

Determine the predetermined shop overhead rate : The average shop direct labor rate is $20 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round to the nearest cent
Determine the cost of goods sold on October : Assuming a perpetual inventory system and using the weighted average method, determine the cost of goods sold on October 29
What would be the net fixed asset value : In 2020, the gross (tangible) fixed assets for a business were reported to be $100 million. What would be the net fixed asset value in 2020
What is his total taxable capital gain : Question - Mike Dixon purchased a 5 year, 7% bond with a face value of $10,000 for $9,600. What is his total taxable capital gain
Calculate the interest earned on the savings account : Compare investment alternatives - A friend has $1,000 that he has saved from his part-time job. Calculate the interest earned on the savings account
What income level would result to indifference on Pedro : Per estimate, other partners were to receive also a salary amounting to P150,000. What income level would result to indifference on Pedro
Calculate the expected cash collections for April and May : Budgeting Assumptions: 60% of sales are cash sales and 40% of sales are credit sales. Calculate the expected cash collections for April, May, and June
How much increase or decrease in finished goods inventory : If Ashley's cost of goods sold for the month was $4,000,000, how much was the increase or decrease in finished goods inventory for the month of September
What is the project NPV : A project has an initial cost of $60,000, expected net cash inflows of $13,000 per year for 8 years, and a cost of capital of 11%. What is the project's NPV

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd