Which will pay an annual stated interest rate

Assignment Help Financial Management
Reference no: EM131315863

You plan to invest $1,250 in a money market account which will pay an annual stated (simple) interest rate of 8.75 percent, but which compounds interest on a weekly basis. If you leave this money on deposit for two years, what will be your ending balance when you close the account?

Reference no: EM131315863

Questions Cloud

Average weekly profit rounded to the nearest whole dollar : Cheapest Car Rental rents cars at the Chicago airport. The car rental market consists of two segments: the short-term segment, which rents for an average of 0.6 weeks, and the medium-term segment, which rents for an average of 1 weeks. What is the av..
What modernist interest does he investigate : What formal quality did this artist explore? How did his medium contribute to the appearance of his work? What Modernist interest does he investigate?
Discuss how information gap between generations and cultures : Discuss how the information gap between generations, cultures, income levels, and education can be resolved. Include a statement of your personal philosophy on the future of integrated business communication
Which would you expect to have the highest option price : Of the following options, which would you expect to have the highest option price? A European 1-month put option on a stock whose market price is $90 where the strike price is $100. The standard deviation of the stock price over the past 5 years has ..
Which will pay an annual stated interest rate : You plan to invest $1,250 in a money market account which will pay an annual stated (simple) interest rate of 8.75 percent, but which compounds interest on a weekly basis. If you leave this money on deposit for two years, what will be your ending bal..
What will be value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $6,300 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0300 annually with the interest being paid quarterly. What will be the..
Write an small paragraph for each one of the given buildings : I want help to write an small paragraph for each one of the buildings below and write about the architecture characteristic of the buildings.
Compute the the degree of operating leverage : Northwood Company manufactures basketballs. The company has a ball that sells for $30. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Compute the CM ratio and the break-even point in balls. Compute ..
How competitive advantage of the company is gained : IT Strategy (BUSS 0020) - Briefly describe history, company's main operations and identify company's competitive advantages and Identify how competitive advantage of the company is gained by the use of IT/IS.

Reviews

Write a Review

Financial Management Questions & Answers

  Several proposed independent projects

Bell Weather Goods has several proposed independent projects that have positive NPVs. However, the firm cannot initiate any of the projects due to a lack of financing. This situation is referred to as:

  Fundamental analysis-efficiency and random pricing analysis

The study of published financial information on a company in order to make investment decisions is known as: technical analysis. fundamental analysis. efficiency analysis. random pricing analysis.

  What can be said about the relationship

What is the conclusion? Is there evidence of a mean difference in values of appraisal predicators?

  What is the current yield on the bonds

The bonds make semi-annual payments and currently sell for 105 percent of par. What is the current yield on the bonds?

  What will be the weighted average coupon on the CMO

Tranche Principal Coupon Rate A $40,000,000 9.25% B 30,000,000 10.00% Z 30,000,000 11.00% A mortgage company is issuing a CMO with three tranches, with the principal and coupon rate given in the table above. What will be the weighted average coupon o..

  What is the amount of each payment

The Granite Group purchased a piece of equipment for $1.2 million. They paid a down payment of 20% in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual percentage rate of 7.75% compounded monthly. What i..

  Debt–total asset ratios

Firm A and Firm B have debt–total asset ratios of 40 percent and 30 percent and returns on total assets of 9 percent and 14 percent, respectively. What is the return on equity for Firm A and Firm B?

  Treasury bonds yield

Suppose 1-year Treasury bonds yield 4.00% while 2-year T-bonds yield 5.10%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from no..

  European put option with a strike price

Currently, a stock price is $80. It is known that at the end of 4 months it will be either $73 or $90. The risk-free rate is 6% per annum with continuous compounding. What is the value of a 4-month European put option with a strike price of $80?

  Firms balance sheet under current liabilities

Which of the following items cannot be found on a firm's balance sheet under current liabilities?

  The property is derelict and must be destroyed at a cost

A building is available for sale for $5 million. The property is derelict and must be destroyed at a cost of $ 3 million. The State of Florida wants the property to building an inner city detention center and has an allocated budget for the land of $..

  Calculate the price of share-pe ratio-market-to-book ratio

Consider two all-equity financed firms (Bright Prospect and Past Glory), both with book value per share of $10, both with market capitalization rate of 15% and earning retention ratios of 0.6. Bright Prospect has an ROE of 20%. Calculate the price of..

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