You have accumulated 4150 and are looking for the best rate

Assignment Help Accounting Basics

Reference no: EM13587121

You have accumulated $4,150 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 10%. A one-year bank certificate of deposit will pay 12%, but the minimum investment is $7,150.

Required:
(a)	Calculate the amount of return you would earn if the $4,150 were invested for one year at 10%. (Round your answer to nearest whole number. Omit the "$" sign in your response.)

Amount of return

(b)	Calculate the net amount of return you would earn if $3,000 were borrowed at a cost of 20%, and then $7,150 were invested for one year at 12%. (Round your answer to nearest whole number. Omit the "$" sign in your response.)

Net amount of return

(c)	Calculate the net rate of return on your investment of $4,150 if you accept the strategy of part b.(Round your intermediate calculations to nearest whole dollar amount and final percentage answer to 2 decimal places. Omit the "%" sign in your response.)

Net rate of return

Reference no: EM13587121

Questions Cloud

What conclusions can you make about the company based on : at the beginning of the month of december toler industries had the following balances in its trialbalanceaccount

During periods of rising prices a perpetual inventory : during periods of rising prices a perpetual inventory system would result in the same dollar amount of ending inventory

Discuss the impact of this environmental issue on a : you are required to critically analyze theenvironmental issuetopic below to demonstrate your comprehension of the

Assuming that the prices of this product follow a normal : question 1 a sample of the various prices for a particular product has been conducted in 16 stores which were selected

You have accumulated 4150 and are looking for the best rate : you have accumulated 4150 and are looking for the best rate of return that can be earned over the next year. a bank

Describe the it control procedures that should exist in : the family support center is a small charitable organization. it has only four full-time employees two staff an

What percentage of cancer cases in the uk is not due to : a what percentage of cancer cases in the uk is not due to lifestyle factors?b the article states that in women cases of

Prepare an income statement for michaels company that uses : michaels company segments its income statement into its east and west divisions. the companys overall sales

Reproduction via cell division is a universal feature of : reproduction via cell division is a universal feature of living cells and multicellular organisms. describe the

User Account

All Pages