Simple interest on its savings account balances

Assignment Help Financial Management
Reference no: EM13810289

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 a $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?

Reference no: EM13810289

Questions Cloud

What fraction of the payment made at the end of second year : Your company is planning to borrow $1.75 million on a 9-year, 13%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?
What is the price of the bonds : Company XYZ has issued bonds that have a 6% coupon rate, payable semi annually. The bonds mature in 16 years, have a face value of $1,000, and a yield to maturity of 8%. What is the price of the bonds?
Proportionate share of ownership and control of corporation : It is frequently stated that the one purpose of the pre-emptive right is to allow individuals to maintain their proportionate share of the ownership and control of a corporation. How important do you suppose control is for the average stockholder of ..
Business has over either sole proprietorship or partnership : A disadvantage that the corporate form of business has over either the sole proprietorship or partnership is the:
Simple interest on its savings account balances : 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 a $5,000 deposit in each bank, how much more money would you earn from your Second City ..
What is the external financing needed : Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,300. What is the external financing needed?
What is the net income for the firm : Travis, Inc., has sales of $387,000, costs of $175,000, depreciation expense of $40,000, interest expense of $21,000, and a tax rate of 35 percent. What is the net income for the firm?
Create a second normal form logical database model : You are then to create a second normal form logical database model and explain why you made the changes from the first normal form database using the second normal form rules
What are possible issues based on the information provided : What are possible issues based on the information provided? What kind of information would a network administrator look for in the trace file that was captured from the IP Host to the local router

Reviews

Write a Review

Financial Management Questions & Answers

  Currency forward market and a futures market

Explain the basic differences between the operation of a currency forward market and a futures market and calculate the intrinsic value and the time value of the call and the put option.

  What is the weighted average expected rate of return

What is the weighted average expected rate of return for all investments made in January and what is the weighted average actual rate of return for all investments ending in December?

  Holdings liquidity improved

Sears has a quick ratio of 0.15729 in Jan 2012 and current ratio of 1.11 in Feb 2014, and quick ratio of 0.19438 and current ratio of 1.09. Has Sears Holdings liquidity improved or been degraded over the time period Jan 2012 & Feb 2014. Use ratios.

  According to your budget the average cost

As the authorized purchasing manager for a large insurance firm, you must decide if it is good for the company to upgrade office computers. According to your budget the average cost of a desktop computer must be less than or equal to$2,100. Using a s..

  Not believing in absolutes in an absolute

Not believing in absolutes in an absolute. There is really only one ethical system. Moral relativism essentially states that there are no moral absolutes. Conflicting absolutism states that moral conflicts do not exist because God cannot contradict h..

  Considering the acquisition of a chain of cemeteries

Templeton extended care facilities is considering the acquisition of a chain of cemeteries for $400 million since the primary asset of this business is real estate Templeton’s management has determined that they will be able to borrow the majority of..

  What is trustworthy collateral from the lenders perspective

What is trustworthy collateral from the lenders’ perspective?  Explain whether accounts receivable and inventory are trustworthy collateral

  The pretax cost of debt

Which one of the following is the pretax cost of debt?

  What are the optimal portfolios for the two investors

The expected return on the S&P 500 index is 12%. The return on the T-bill is 5%. The standard deviation of return on the S&P 500 index is 18%. Investors can form portfolios from these 2 securities. Suppose investors have a utility function of the fol..

  What must the coupon rate be on the bonds

Osbourne Corporation has bonds on the market with 16.5 years to maturity, a YTM of 10.6 percent, and a current price of $942. The bonds make semi-annual payments. What must the coupon rate be on the bonds?

  What is the approximate real rate of interest

Treasury bills are currently paying 5 percent and the inflation rate is 3.20 percent. What is the approximate real rate of interest?

  Find an article about a company reporting key financial news

Search current news (less than 6 months old) and find an article about a company reporting key financial news (e.g. landing a large contract, reporting unusual profits or losses, expressing concern for future profitability, etc.). Briefly review the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd