Calculate the total interest earned on the initial deposit

Assignment Help Financial Management
Reference no: EM132020290

Sarah plans to deposit $6,500 into an interest-bearing account that promises to pay 3% APR (compounded annually). Assume that Beth does not make any additional deposits or withdrawals from the account. Also, assume that she plans to keep the account open for 25 years. Calculate the total interest earned on the initial deposit over the 25 year holding period. (Round to 2 decimals)

Please show work.

Reference no: EM132020290

Questions Cloud

Calculate the price on bond : Time to maturity: 7 years Coupon rate: 5.5% Yield to maturity: 6% Par Value: $1,000 Assuming semi-annual compounding, calculate the price on the bond.
Calculate the amount he should pay for this annuity : Calculate the amount he should pay for this annuity (present value).
Amount you would be willing to pay for investment : Calculate the amount you would be willing to pay for this investment.
Calculate the price on the bond : Assuming annual compounding, calculate the price on the bond.
Calculate the total interest earned on the initial deposit : Calculate the total interest earned on the initial deposit over the 25 year holding period.
Calculate the equity risk premium for small-company stocks : Given the following information, calculate the equity risk premium for small-company stocks.
What is the net present value of project : What is the net present value of this project if the relevant discount rate is 13 percent and the tax rate is 34 percent?
Calculate the current yield on the bond : Calculate the current yield on the bond.
What is net present value of this project : What is the net present value of this project given a required return of 12.3 percent?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

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