Interest-future value-present value

Reference no: EM1328400

1. Simple Interest versus Compound Interest - First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made $5,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?

2. Calculating Future Values: Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2057, assuming they appreciate at 4.5 percent annual rate?

3. Calculating Present Values - You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent?

Reference no: EM1328400

Questions Cloud

Management strategies to employ in current position : What management strategies can you employ in your current position (even if you are not yet a manager)?

Prepare a systems development plan : Create a systems development plan/efficient use of data - What lessons can be learned from creating a systems development plan and how can it help you contribute to current or future workplace settings?

As customers will more price sensitive also price conscious : Do you think we, as customers will be more price sensitive also price conscious. What do you think this means for luxury goods.

Explaining the objective theory of contracts : You are still working for the City of Bigtown's Counsel, and it seems that your work largely involves shooting down the mayor's "creative" ideas to boost tourism.

Interest-future value-present value : Computing Present Values - You've just received notification which you have won the $1 million first prize in Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What..

It based partnerships in logistics or manufacturing : Why do many business partnerships—such as non-information-technology (IT)-based partnerships in logistics or manufacturing—fail?

Show the analysis of control procedures : What type of fraud do you consider to be most damaging to an organization and Of the analysis of control procedures, which do your prefer?

How can small business owners minimize the risks : Many small businesses are built around one product. What risks does this approach impose? How can small business owners minimize those risks?

Defining characteristic of best leader from past : Start by defining what a leader means to you. Then name the one person that you would rank as the best leader in history and list the key reasons or characteristics that led you for that choice.

User Account

All Pages