Interest on deposits and compound bank

Assignment Help Financial Management

Reference no: EM13969869

1) You have found an investment paying 12% compounded annually. You invest $1,000 today, add $500 at the end of Y2, and $1,000 at the end of Y4.

a) How much money will you have at the end of 4 years?

b) Create a timeline that reflects the CASH FLOWS in the problem.

2) A friend agrees to lend you $17,500 to start a business on the condition that you agree to repay him $25,000 in 4 years. what is the implied annual interest rate on this loan?

3) Basic bank pays 4% simple interest on deposits and compound bank pays 4% compounded montly. If you deposit $10,000 in each bank how much interest will you have earned at each bank at the end of five years?

Reference no: EM13969869

Questions Cloud

Write a proposal paper on amazon : Write a Proposal paper on Amazon - The brand of Amazon was born out of the insight that there can be evolution of internet as a source for targeting the customers and selling key products.

How did your teaching plans coincide with what occurred : How did your teaching plans coincide with what occurred in the classroom during the week in terms of setting objectives, planning learning activities, organizing learning activities, and specifying evaluation procedures?

Describing two social movements : Describing two social movements. Explain how they started and how they ended, what their purpose was,

Prepare a budget and plan for change implementation : Prepare a budget and plan for change implementation. Provide suggestions to overcome the challenges based on the organizational structure, communication methods, and training.

Interest on deposits and compound bank : Basic bank pays 4% simple interest on deposits and compound bank pays 4% compounded montly. If you deposit $10,000 in each bank how much interest will you have earned at each bank at the end of five years?

In what ways does amir seek redemption and why : How do Amir and Hassan represent the divisions in Afghan society, and how do these divisions affect the courses their lives take? How does the author use time as a narrative device in the novel?

Describe impact of the implementation of the recommendation : Describe and assess the impact of the implementation of the recommendation on the organizational structure and performance relative to the forecasted demand for the services or products offered.

Federal-plus-state income tax rate : The company had no amortization charges and no non-operating income. It had $8,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's taxable income, or earnings before..

Perform internet search for current healthcare organization : Perform an internet search for a current healthcare organization of your choice. Create projected financial statements to analyze effects of alternate operating assumptions on the firm's financial condition.

User Account

All Pages