User Account

All Pages

What is the annual gross interest return

Assignment Help Finance Basics
Reference no: EM132525469

An FI offers a $2500 minimum balance investment savings account paying 4% annual interest, and there are no service charges as long as the customer maintains the minimum balance. The customer maintains a balance of $5000, and averages 750 cheques per year. Each cheque has a processing cost to the FI of $0.15. What is the annual gross interest return on this account to the customer?

Reference no: EM132525469

Questions Cloud

How much money will be in the account : If someone 20 years old deposit $5,000 each year into a savings account for 50 years at an 8% interest compounded annually, how much money will be in the accoun
Sustainable growth rate : How does the internal growth rate differ from the sustainable growth rate? Which one will generally be higher? Why?
What would be its internal growth rate : If a firm has a payout ratio of 40%, a net profit margin of 10%, and a total asset turnover of 2, what would be its internal growth rate?
What is the present value : What is the present value of $1,200 to be received in four years if the appropriate interest rate is 7.5% (annual compounding)?
What is the annual gross interest return : Each cheque has a processing cost to the FI of $0.15. What is the annual gross interest return on this account to the customer?
Estimate the cost of common stock : The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?
What is the fi liquidity index : receive $90 for its liquid securities and $450 for its housing loans. What is the FI's liquidity index (round to two decimals)?
Showing the difference of discounted values : Decide if the borrower should refinance the debt or not by showing the difference of discounted values of two alternatives.
Find the size of quarterly payments : A company wants to accumulate 8.000 TL at the end of 5 years. It starts quarterly payments in a bank account which pays J4=9%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain how monetary policy in one country can affect

Explain how monetary policy in one country can affect interest rates in other countries.

  What is the sensitivity of the npv to changes

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $755 per set and have a variable cost of $439 per set.

  Would you recommend that the property be renovated

What is the rate of return that the investor would earn on the additional funds invested in renovating the property?- Would you recommend that the property be renovated?

  What is the stock price

If the expected long-run growth rate for this stock is 5.4%, and if investors' required rate of return is 11.4%, what is the stock price?

  Compute cash payments for the given months

Burt's Burgers budgets inventory purchases as $40,000 for July, $60,000 for August and $25,000 for September. Burt's purchases all inventory on account.

  What is the value of the mine

The cost of capital for the mine is 12 percent. What is the value of the mine?

  Calculate the aggregate net benefit of the project

Calculate the aggregate net benefit of the project according to: the Market CBA, the Private CBA, the Efficiency CBA and the Referent Group CBA

  Explain the weakness in lehman''s governance practices

Identify and explain the weakness in Lehman's governance practices.

  What will be the effect on net interest income

FIN 4100 Management of Financial Assignment - Liquidity Risk. What will be the effect on net interest income and the size of the DI

  Compute the firm price-earnings ratio

The company's share price is $13.74, and the company has 321,940 shares outstanding. Compute the firm's price-earnings ratio upto two decimal places.

  Compute the break-even point in units

Shock Electronics sells portable heaters for $25 each unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed expenses are $96,000.

  Disadvantages of higher interest rates on investments

While everyone dreams of high interest rates for investments, usually high interest rates come with other disadvantages. Using the interest or other sources, research and write an essay on the advantages and disadvantages of higher interest rates ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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