Simple interest on investment accounts

Assignment Help Financial Management

Reference no: EM131511079

First Simple Bank pays 8.5 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 10 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Interest rate %

Reference no: EM131511079

Questions Cloud

Mutual funds offer compared to company stock : What advantages/disadvantages do the mutual funds offer compared to company stock for your retirement investing?

How long will it take to reach your goal : If your salary increases at an average annual rate of 7.85 percent, how long will it take to reach your goal?

What percentage will the price of each bond change : By what percentage will the price of each bond change if its yield to maturity increases from 6% to 9%?

What is the initial price of this bond : What is the initial price of this bond if it has a 7% yield to maturity?

Simple interest on investment accounts : First Simple Bank pays 8.5 percent simple interest on its investment accounts. First Simple Bank over an investment horizon of 10 years?

The concept of an optimal contract : Define and explain in your own words the concept of an optimal contract.

Uniqueness of assets creates agency costs for shareholders : Describe two ways that the uniqueness of assets creates agency costs for shareholders.

What will be price of the stock after the repurchase : what will be the price of the stock after the repurchase?

What alternative investment has lowest possible volatility : What alternative investment has the lowest possible volatility while having the sameexpected return as Microsoft? What is the volatility of this investment?

User Account

All Pages