Annually compounded rate of interest has bank been paying

Assignment Help Financial Management

Reference no: EM13976306

1. Determine how much $1,000 deposited in a savings account paying 8% compounded annually will be worth after 5 years.

2. At an effective interest rate of 12%, a single sum invested today will double itself in approximately:

3. Your bank balance is exactly $10,000. Three years ago you deposited $7,938 and have not touched the account since. What annually compounded rate of interest has the bank been paying?

4. $3,947 deposited four years ago has grown to $5,000. What semiannually compounded rate of interest has the bank been paying?

5. Using an annual interest rate of 9%, how long will it take a deposit of $1,000 to grow to $3,000, assuming no additional deposits are made?

Reference no: EM13976306

Questions Cloud

A firm has had the indicated earnings per share : A firm has had the indicated earnings per share over the last three years. If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.

Calculate coefficient of variation for each of alternatives : You have been given the expected return data shown in the first table on 3 assets- F, G and H over the period 2016-2019. Calculate the expected return over the 4 year period for each of the alternatives. Calculate the standard deviation of returns ov..

About project cash flow estimation : Which of the following statements about project cash flow estimation is false?

What is the amount of the equal annual installments : Calculate the amount today that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%. What is the amount of the equal annual installments for a 10-year, $10,000 loan with a..

Annually compounded rate of interest has bank been paying : Determine how much $1,000 deposited in a savings account paying 8% compounded annually will be worth after 5 years. At an effective interest rate of 12%, a single sum invested today will double itself in approximately: Your bank balance is exactly $1..

About the accounts payable : A chain of appliance stores, APP Corporation, purchases inventory with a net price of $200,000 each day. The company purchases the inventory under the credit terms of 2/15, net 30. APP always takes the discount, but takes the full 15 days to pay its ..

About capital investment analysis : Which of the following statements about capital investment analysis is most correct?

About the cost of trade credit : A large retailer obtains merchandise under the credit terms of 1/10, net 40, but routinely takes 65 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

Most information about a projects riskiness : Which of the following options provides the most information about a project’s riskiness?

User Account

All Pages