How much of balance corresponds to? interest on? interest

Assignment Help Financial Management
Reference no: EM131990048

Suppose you invest $1,050 in an account paying 6% interest per year.  

a. What is the balance in the account after 2 years? How much of this balance corresponds to? "interest on? interest"?

b. What is the balance in the account after 34 years? How much of this balance corresponds to? "interest on? interest"?

a. What is the balance in the account after 2 years?

The balance in the account? (with compounded? interest) after 2 years is

?$ -----------. (Round to the nearest? cent.)

Reference no: EM131990048

Questions Cloud

What is the best estimate of these bonds remaining life : What is the best estimate of these bonds' remaining life? what coupon rate would it have to set in order to issue new bonds at par?
Wait until five years after rearmament or take the money now : Which alternative should you choose? You should = Wait until five years after rearmament OR take the money now?
What was the current yield of the bond one year : Today, the bond’s price is 1,076.21 and the bond has 9 years until maturity. What was the current yield of the bond one year ago?
About investing-the present value of the return : You are thinking about investing $5,194 in your? friend's landscaping business. The present value of the return is_
How much of balance corresponds to? interest on? interest : What is the balance in the account after 2 years? How much of this balance corresponds to? "interest on? interest"?
What will be the net change in income : If Dome earns 20 percent on sales before discounts, what will be the net change in income if the new credit terms are adopted?
Calculate the current assets for debby sportswear : Calculate the current assets for Debby Sportswear Inc. from the scrambled list of items presented below:
Interest over the three-year life of the computer system : How much would Sauer Food Company save in interest over the three-year life of the computer system if the one-year loan is utilized
What is the lower ear : Varys and Baelish are roommates. what is the lower EAR?

Reviews

Write a Review

Financial Management Questions & Answers

  Analysis of the policies and approach to corporate social

Analysis of the policies and approach to Corporate Social Responsibility by the firm you have chosen in one geographic location.

  What will be the required return on your portfolio

You have been managing a $5 million portfolio that has a beta of 1.00 and a required rate of return of 12%. The current risk-free rate is 5.00%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.70, what wi..

  Compute depreciation expense each year over five-year life

A firm is considering a new project that will require purchasing equipment which will have an installed cost of $1 million. The project has a five year life, and the equipment will be depreciated using 5-year MACRS depreciation. The marginal tax rate..

  Calculate the return on investment and dollar net profit

Calculate the return on investment. Calculate the dollar net Profit.

  What is the value of this business at a discount rate

TH Manufacturers expects to generate cash flows of $129,600 for the next two years. At the end of the two years the business will be sold for an estimated $3.2 million. What is the value of this business at a discount rate of 14 percent?

  Equity fund with an expected risk premium

You manage an equity fund with an expected risk premium of 11.4% and a standard deviation of 28%. The rate on Treasury bills is 5.2%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fun..

  Compute the gross profit margin ratio

Compute the gross profit margin ratio, the return on equity and the return on assets, rounding calculations to two decimal places and does the firm have positive or negative financial leverage? Briefly ex­plain.

  What were the digby corporations retained earnings

What were the Digby Corporation's retained earnings?

  Calculate the expected return-standard deviation

Based on the data above, calculate the expected return, standard deviation and coefficient of variation for Demogorgon Inc.

  What is the liability-loan charges compound interest

What is the liability after 10years if the loan charges simple interest? What is the liability after 10 years if the loan charges compound interest?

  What is the maximum revenue

What is the maximum revenue? How many units should be manufactured to obtain this maximum?

  Why does the average mutual fund in the market today

Why does the average mutual fund in the market today appear to have been a great performer? Give a one-sentence answer.

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