What effective annual rate does each bank pay

Assignment Help Corporate Finance
Reference no: EM13197525

Five banks offer nominal rates of 6% on deposits; but A pays interest annually, B pays semiannually, C pays guarterly, D pays monthly, E pays daily.`

What effective annual rate does each bank pay ? If you deposit $5000 in each bank today, how much will you have at the end of 1 year ? 2 year ? What nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Suppose you don't have the $5,000, but need it at the end of 1 year. You plan to make a series of deposits- annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E- with payments beginning today. How large must the payments be to each bank to accumulate the $5000 you need by the end of the year?

Reference no: EM13197525

Questions Cloud

What is the approximate area : a rectangle is 357 miles long and 274 miles wide. round each dimension to the nearest ten. using the rounded numbers, what is the approximate area.
What is additional gain or loss due to leasing the asset : The market interest rate is 5.0% and the short rebate rate is 3.0%. What is your additional gain or loss due to leasing the asset?A. $96.00 gain
State decision making or representation of information : Inclusion based research which has occurred within the last 6 years paper has to include presentation of both sides of the argument, research supporting both sides, your past experiences positive and negative
Print the matrix after the multiplication is done : Write a program that multiplies 2 (n,m) matrices. Each element in the resulting matrix must be create by a separate thread. Print the matrix after the multiplication is done.
What effective annual rate does each bank pay : What effective annual rate does each bank pay ? If you deposit $5000 in each bank today, how much will you have at the end of 1 year ? 2 year
What is the highest possible revenue : If we set the price of a ticket to $20, we can sell 600 tickets. If we raise the price by x dollar, 4x less people will buy the ticket. What is the highest possible revenue that we can obtain.
Write the equation of a line perpendicular to the line : Write the equation of a line perpendicular to the line y=5 and through the point (3,5)
Find the correlation coefficient p : Let X and Y have the joint pmf p(x,y) = 1/7, (0,0), (1,0), (0,1), (1,1,), (2,1), (1,2), (2,2), zero elsewhere. Find the correlation coefficient p.
Find the length of the other base : A trapezoid has an area of 300 meters squared, a height of 15m, and a base of 12m. Find the length of the other base. Show all work for credit.

Reviews

Write a Review

Corporate Finance Questions & Answers

  What is the current price of the stock

Determining stock price of various scrips - What is the current price of the stock? What was the net price change for the date covered by the paper?

  Compute the cash break-even point

Compute the NPV. Assume a required return of 15% and a tax rate of 30% and compute the cash break-even point.

  Banker must be satisfied

Before approving a loan to a small business, banker must be satisfied with the owner's character. Why is this? Do you agree or disagree?  Explain your answer.

  Sources of revenue received by hospitals

Determine the sources of revenue received by hospitals and what sources are the most stable? What are some of the major public and private revenue sources?

  Finding production costs

Samco producing has always buy a certain component part from supplier on the East Coast for dollar 50 per part. The supplier is reliable & has maintained the same value structure for years.

  Eliminate all management discretion in reporting

The best standards are the ones that eliminate all management discretion in reporting.

  Discuss approach to managing foreign risks

Please write about the international financial manager of Samsung. This is the individual who is in charge of international financial management at your corporation.

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Calculate expected claim cost per policy

An insurer trade a very large amount of policies to people with the following loss distribution: $100,000 with probability 0.005;

  What is the estimated value of the abandonment option

Based on the above information, what is the F-200's expected net present value and what is the estimated value of the abandonment option?

  What point will the stock reach an equilibrium

The price in the market to day fairly reasonable to buy using CAPM and what point will the stock reach an "equilibrium" at which it again is perceived as fairly priced?

  Find the stock new market value

Ezzell Company issued perpetual preferred stock with a 10 percent yearly dividend. The stock currently yields 8 percent, and its par value is $100.

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