Interest received at the end of period is reinvested period

Assignment Help Financial Management

Reference no: EM13846315

You placed $6342 in a savings account today that earns an annual interest rate of 11.98 percent compounded semi annually. How much will you have in this account at the end of ten years? Assume that all interest received at the end of the period is reinvested the next period. Round the answer to two decimal places.

Reference no: EM13846315

Questions Cloud

What is the present value of this investment : An investment will pay $1283 two years from now, $ 3848 four years from now and $3124 five years from now. If the opportunity rate is 19.57 percent per year, what is the present value of this investment?

What is the total reported profit and net income : The agreed upon contract price was $2,250,000. By December 31 of the first year, Kinne Construction finished approximately one-third of the construction on the building (as agreed upon by the A/E) and subsequently billed Sitzabee Inc. $800,000. What ..

What is the accumulated sum-compounded annually : What is the accumulated sum of the following stream of payments? $ 1, 388 every year at the end of the year for 15 years at 9.56 percent compounded annually.

Total implied and actual transaction cost : You find that the bid and ask prices for a stock are $13.75 and $15.05, respectively. If you purchase or sell the stock, you must pay a flat commission of $20. If you buy 300 shares of the stock and immediately sell them. What is your total implied a..

Interest received at the end of period is reinvested period : You placed $6342 in a savings account today that earns an annual interest rate of 11.98 percent compounded semi annually. How much will you have in this account at the end of ten years? Assume that all interest received at the end of the period is re..

Geographical arbitrage profit with two exchange rate quotes : Riskless profit on the Swiss franc. The following exchange rates are avaliable to you.(you can buy or ssell at the started rates.) Australian-euro arbitrage. A corporate treasury with operations in Sydney simultaneously calls Westpac Bank in Sydney a..

What is the nominal interest rate : Given an anticipated inflation premium of 1.40% and a real rate of interest of 4.14%, what is the nominal interest rate? Round your answer to 4 decimal places.

What is the firms tax liability : Last year, California Sushi and Such (CSS) had sales of $65 million. The firm's operating expenses amounted to $20 million and costs of goods sold totalled $15 million. In addition, CSS received $80,000 in dividend income, and paid $300,000 in divide..

Portfolio is invested in a risk-free security and two stocks : A $100,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1.80 while the beta of stock B is 0.20. One-half of the portfolios is invested in the risk-free security. How much is invested in stock A if the beta of t..

User Account

All Pages