How much total interest is earned on the original deposit

Assignment Help Financial Management
Reference no: EM131025622

Interest on Interest Consider a 1200 deposit earning a 6 percent interest rate per year for 9 years? How much total interest is earned on the original deposit (excluding interest earned on interest)?

Reference no: EM131025622

Questions Cloud

What is the combined present value of these cash flows : Moving Cash Flow You are scheduled to receive a $400 cash flow in one year, a $700 cash flow in two years, and pay a $300 payment in three years. If interest rates are 10 percent per year, what is the combined present value of these cash flows?
Write in mathematical symbols: the proportion is a majority : A plumber charges $315 for 3 hrs works, and $635 for 7 hrs work. How much will he charge for 6 hrs work?
What are the mean and variance of the waiting times : Suppose that customers arrive at a checkout counter at a rate of two per minute. What are the mean and variance of the waiting times between successive customer arrivals?
Ifrs convergence projects of the fasb and iasb : Active GAAP and IFRS Convergence projects of the FASB and IASB. Potential impact on business and the accounting profession of changes in accounting standards or securities laws.
How much total interest is earned on the original deposit : Interest on Interest Consider a 1200 deposit earning a 6 percent interest rate per year for 9 years? How much total interest is earned on the original deposit (excluding interest earned on interest)?
Find the density function for t : The number of arrivals N at a supermarket checkout counter in the time interval from 0 to t follows a Poisson distribution with mean λt. Let T denote the length of time until the first arrival. Find the density function for T.
Identifying letter of best description : In each blank next to the following terms, place the identifying letter of its best description.
Flexible budget cost formula for indirect materials : Muntjac Corporation's flexible budget cost formula for indirect materials, a variable cost, is $0.75 per unit of output. Assume that actual units produced equals standard units produced. If the company's performance report for last month shows a $250..
Determine the best shape for containers : You have been asked to determine the best "shape" for containers - in other words, can you determine which containers (regular prisms or cylinder) hold 20 ounces but can be produced at the best price.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the net value of buying the cadillac

An elderly relative offers to sell you their used 1958 Cadillac Eldorado for $52,000. You note that very similar cars are selling on the open market for $87,000. You don't care for classic cars and would rather buy a new Ford Explorer for $35,000. Wh..

  The current value of each hewitt bond

Hewitt Packing Company has an issue of $1,000 par value bonds with a 11 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The..

  Do you agree with managers interpretation of the analysis

Its manager stated that it did not want to pursue a project that had a one-in-three chance of having a negative NPV. Do you agree with the manager's interpretation of the analysis? Explain.

  Why changing dividend policy will impact firm value

It can be argued that a firm’s dividend policy is irrelevant but that changes to dividend policy are relevant. Explain this argument by discussing what factors a firm should consider in setting its dividend policy and why changing dividend policy wil..

  Statement of cash flows assuming that direct method is used

Spencer Corp. reported accounts receivable of $28,000 on its December 31, 2013, balance sheet. On December 31, 2014, accounts receivable had decreased to $15,500. Sales for the year amounted to $60,500. What is the amount of cash collections that Spe..

  Invest all of your money in the stock of one firm

If you invest all of your money in the stock of one firm.....

  Provide a linear programming model formulation only

Show & Sell is interested in finding the optimum allocation of the budget to radio and TV advertising. Provide a linear programming model formulation only; you do not need to identify an optimal solution.

  Two different names of the market risk are systematic risk

Two different names of the market risk are systematic risk or _____ risk. We measure the market risk of a stock using _____.

  Time to reach a financial goal

Time to reach a financial goal You have $19,302.28 in a brokerage account, and you plan to deposit an additional $6,000 at the end of every future year until your account totals $220,000. You expect to earn 12% annually on the account. How many years..

  Investment opportunity-What is the NPV of the project

Lakonishok Equipment has an investment opportunity in Europe. The project costs €19 million and is expected to produce cash flows of €3.6 million in Year 1, €4.1 million in Year 2, and €5.1 million in Year 3.

  Using the option pricing theory-find the market value

Albany Corp has zero coupon bonds maturing after 15 years. The overall value of the firm is 3 times the face value of the bonds. The company has sigma of .25 and the riskless rate is 8%. Using the option pricing theory, find the market value of a $10..

  Security markets are efficient when each

Security markets are efficient when each of the following exist except:

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