Define effective interest rate per compounding period

Reference no: EM132758513

Question: A company plans to deposit 46 thousand dollars in a fund, which will return 15% per year compounded daily, find the amount of 46 thousand dollars after 8 years, using both the

(a) effective annual rate and the

(b) effective interest rate per compounding period (CP). Provide the corresponding cash flow diagrams.

Reference no: EM132758513

Questions Cloud

What would be asset class and amount : A couple of years ago, Ms. Smith received an inheritance and she decided to use that money to purchase two condominium units in the same development.

What options does Julian have to structure Retrofit business : Case Studies of Business Law and Business Structures - Advise Wilona's children, discussing all available grounds for relief under Australian contract law

Classifications of ratios-liquidity-solvency-profitability : Explain the uses for each of the three classifications of ratios: liquidity, solvency, and profitability.

Compute the internal rate of return for proposed investment : OptiLux is considering investing in an automated manufacturing system. Compute the internal rate of return for the proposed investment.

Define effective interest rate per compounding period : A company plans to deposit 46 thousand dollars in a fund, which will return 15% per year compounded daily, find the amount of 46 thousand dollars after 8 years.

What transfer price of x causes divisional managers to make : What transfer price of X causes divisional managers to make decentralized decisions that maximize Carlson Company's profit if each division is treated

What is the cost of equity for firm : The next expected dividend is $1.62 a share. What is the cost of equity for this firm?

Prepar an income statement for presentation to management : Prepar an income statement for presentation to management. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance.

Prepare a effective interest amortization table for the bond : Prepare a effective interest amortization table for this bond. On May 1, 2021, Carla Vista Corp. issued $875,000 of 5-year, 8% bonds at 98

User Account

All Pages