If the interest is compounded continuously

Assignment Help Business Economics

Reference no: EM131010008

A savings bank offers $1000 certificates deposit. Each certificate can be redeemed for $2000 after 8.5 years. What are (a) the nominal, (b) the effective, annual interest rate, if the interest is compounded continuously?

Reference no: EM131010008

Questions Cloud

Determine the cost-effectiveness of companies : Define needs assessment. Determine the cost-effectiveness of companies conducting need assessments. Identify steps companies can employ to modify ineffective training programs that are not cost effective

Fixed costs involved in the production process : Break-even analysis The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $13 and has a variable cost of $8. There are $20,000 in fixed costs involved in the production process. Compu..

Break-even analysis stock electronics sells : Break-even analysis (LO2) Stock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000. Compute the break-even point in units

What is the break-even point in number of boxes : Break-even point and degree of leverage (LO2 & 5) Mo & Chris’s Delicious Burgers, Inc., sells food to Military Cafeteria for $15 a box. The fixed costs of this operation are $80,000 while the variable cost per box is $10. what is the break-even point..

If the interest is compounded continuously : A savings bank offers $1000 certificates deposit. Each certificate can be redeemed for $2000 after 8.5 years. What are (a) the nominal, (b) the effective, annual interest rate, if the interest is compounded continuously?

Analyze a specific issue or event : With this paper assignment, you are expected to demonstrate your ability in using sociological theories and concepts to understand as well as analyze a specific issue or event highlighted in one of the documentary films shown in class

Deadweight loss is the decrease in from trading : Netflix is the largest online DVD rental service offering flat rate rental-by-mail and online streaming to customers in the United States. Currently, there are approximately 8 million subscribers. Suppose Netflix increases their average flat rate by ..

The town council of the suburb of happy valley : The town council of the suburb of Happy Valley has concluded that to breakeven from a fiscal point of view, a new housing unit must have a taxable value (v*) of $250,000. Land in Happy Valley currently sells for $40,000 an acre ( r). Using the rule o..

Is the department head being ethnocentric or prejudiced : Your company is in need of someone to fill a new position. The spot calls for some very specific skills, education, and experience, but you happen to have an old friend who exactly fits the bill. In addition, he has mentioned to you that he feels it ..

User Account

All Pages