Simple interest on investment accounts

Assignment Help Financial Management

Reference no: EM131992535

First Simple Bank pays 8.1 percent simple interest on its investment accounts. 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 11 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: EM131992535

Questions Cloud

Expand their mold remediation operation : Cara LLC has an opportunity to expand their mold remediation operation. Calculate the weighted average cost of capital (WACC) for Cara LLC

What is the total amount of general damages : What is the total amount of general damages that Jane would be entitled to?

Reinvestment risk relates to income the portfolio produces : Price risk, or interest rate risk relates to current market value of the bond portfolio, while reinvestment risk relates to the income the portfolio produces.

What are causes of change in equity : Last year the Baldwin company increased their equity. In 2017 their equity was $49,360. What are causes of change in equity?

Simple interest on investment accounts : First Simple Bank pays 8.1 percent simple interest on its investment accounts.

Require an effective annual return : If you require an effective annual return of 10 percent on this investment, how much will you pay for the contract today?

What rate of return would you have earned on your investment : What rate of return would you have earned on your investment had you purchased the shares on December 24, 2007?

Four year loan-beginning balance of the loan : Beth has just borrowed $11,500 on a? four-year loan at 88?% simple interest. The beginning balance of the loan for month 2 is:

What is the current value of the option to sell the plant : You own a small manufacturing plant that currently generates revenues of $2 million per year. What is the current value of the option to sell the plant?

User Account

All Pages