Find the interest earned, The principal represents an

Find the interest earned

Assignment Help Financial Management

Reference no: EM131448338

The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Principal $3000 Rate 8 % Compounded annually Time 5 years.

A. Find how much money there will be in the account after the given number of years. B. Find the interest earned.

Reference no: EM131448338

Questions Cloud

Calculate genentech annual sustainable growth rate for years : Genentech Inc. is a California-based biotech pioneer recently acquired by Swill pharmaceutical gian Roch Holding AG. Roch paid $46. 8 billion in cash for the 44 percent of Genentech it did not already own, implying a market value of $100 billion for ..

Fixed retirement income that has the same purchasing power : Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $40,000 has today. How much mus..

Explain how interest rates influence : Crissie just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9 5 million, or to receive 30 end-of-year payments of $5 5 million. Explain ..

The bond to create a synthetic stock and the stock : Stock XYZ trades at a current level of S0 = 120, the continuously compounded dividend yield is 2.5%, the continuous interest rate is 4%. The stock XYZ paying the continuously compounded dividend yield of 2.5% there are no dividends use the forward an..

Find the interest earned : The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. Principal $3000 Rate 8 % Compounded annually Time 5 years. Find the interest earned.

Saving for retirement with the first payment : Your client is 40 years old. She wants to begin saving for retirement with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return o..

What would be the entry in the payoff table for situation : The Claus Christmas Tree Company must order Christmas trees for the upcoming season. They order trees that are fairly uniform in size and in species. What would be the entry in the payoff table for the situation where Sandy orders 600 trees and the d..

Find the value of a british consol : Find the value of a British consol that pays $25 per year in perpetuity. The interest rate on investments of comparable risk is 5.2%. What is the present value of an investment that will pay $100 per year forever if the required rate is 10%?

What is the present value of your retirement plan : You belong to an unusual pension plan because your retirement payments will continue forever (and will go to your descendants after you die). If you will receive $24,000 per year at the end of each year starting 30 years from now (i.e., the first pay..

User Account

All Pages