User Account

All Pages

Calculate the value of interest earned

Assignment Help Finance Basics
Reference no: EM133276077

Pixel Ltd has asked you to evaluate an investment option which they are considering investing some vacant funds in. If they invest $4800 at the end of each year for 10 years, they will receive $84,230 at the end of that time. Pixel Limited has advised that they will go ahead with the investment if the interest earned on the investment is greater than 14.5%. 

You are required to complete the following: 

  1. Calculate the interest rate, which will be earned on the above investment. Evaluate information in relation to the financial profitability. ( Show all working Step)
  2. Calculate the value of interest earned over the 10 years. Based on your calculations should Pixel Limited go ahead with the above investment? Please provide a justification for the suggestion made. (Show all working Step)

Reference no: EM133276077

Questions Cloud

Describe one internal and external method for dissemination : Describe one internal and one external method for the dissemination of your evidence-based change proposal
Difference between a theory and a hypothesis : What is the difference between a theory and a hypothesis and how the results of studies can be used to further inform theories
Fifo and average-cost inventory : Esplanade Company was formed on December 1, 2014. The following information is available from Esplanade's inventory records for Product BAP.
Will you do to combat these changes personally : BIO 1310 Concorde Career Colleges What are three changes (including problems or diseases) more likely to occur with the tissues and the integumentary system
Calculate the value of interest earned : Pixel Ltd has asked you to evaluate an investment option which they are considering investing some vacant funds in. If they invest $4800 at the end of each year
What are the significant differences between the 3 stages : PSYC 2003 Taft College What are the significant differences between the 3 stages of birth? (Specifically, this would be the stages of birth and delivery)
Describe how pain is managed for terminally ill patient : Describe how pain is managed for the terminally ill patient. What is a good death for the Lugbara of Uganda? What would you consider a good death?
Calculate the ratios for 2020 and 2021 : See Appendix 1 Glencore Plc 2021 Financial Accounts a. Calculate the following ratios for 2020 and 2021:
Determine the effectiveness after making a change : Nursing shortage in the country due to the pandemic determine the effectiveness after making a change for the staffing shortage of nurses post pandemic

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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