Compound interest with nonannual periods

Assignment Help Financial Management

Reference no: EM132044872

(Compound interest with nonannual periods) a. Calculate the future sum of $ 5,000, given that it will be held in the bank for 10 years at an APR of 66 percent. b. Recalculate part (a) using compounding periods that are (1) semiannual and (2) bimonthly (every two months). c. Recalculate parts (a) and (b) for an APR of 12 percent. d. Recalculate part (a) using a time horizon of 20 years? (the APR is still 66 percent). e. With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts (c) and (d), what conclusions do you draw when you compare these figures with the answers found in parts (a) and (b)?

Reference no: EM132044872

Questions Cloud

Why is operational management important to an organization : Why is operational management important to an organization?

With a human-like growth and developmental process : At what point in our evolution did we become human and why? Was it with the first bipeds? With the first stone tools?

Prepare a flexible budget : Bowling Company budgeted the following amounts: Direct labor 0.5 hr @ $16.00 per hour. Prepare a flexible budget for 2,500 units, 3,000 units and 3,500 units

Explain the key elements of career counseling : You have been presented with information on a range of key elements of career counseling including the application of theory, utilization of online resources.

Compound interest with nonannual periods : Compound interest with nonannual periods-Calculate the future sum of $ 5,000, given that it will be held in the bank for 10 years at an APR of 66 percent.

What is the purpose of a national certification : What would be the major licensure difference between the state and national level according to the NBCC? In addition, could a counselor practice.

Describe the actions of an ethical corporate leader : Describe the actions of an ethical corporate leader. Provide an example of someone who exhibits these qualities. w/references

Where on the income tax return would a worker report : The worker considered an independent contractor has many more available deductions, Where on the income tax return would a worker report

Usefulness of the concept of price elasticity : What is the usefulness of the concept of price elasticity from the point of view of management?

User Account

All Pages