Calculation of interest rate and rate of returna friend has

Assignment Help Corporate Finance
Reference no: EM13356952

Calculation of Interest rate and Rate of Return.

A friend has $4800 that has been saved from her part-time job, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the money in a bank savings account at 5.5% interest or to lend it to Judy . Jury has promises to replay $5100 after 6 months.

a. Calculate the interest rate earned on the savings account for six months

b. Calculate the rate of return if the money is lent to Judy. Round your percentage answer to two decimals.

Reference no: EM13356952

Questions Cloud

Calculate the ebit-eps indifference pointemco products has : calculate the ebit-eps indifference point.emco products has a present capital structure consisting only of common stock
Computation of ebit-eps indifference pointsrodney rogers a : computation of ebit-eps indifference points.rodney rogers a recent business school graduate plans to open a wholesale
Analyze the financial performance with various key : analyze the financial performance with various key ratios.submit a two-page 600 to 700 word written report explaining
Multiple choice questions on time value of money1nbspthe : multiple choice questions on time value of money.1.nbspthe primary operating goal of a publicly-owned firm interested
Calculation of interest rate and rate of returna friend has : calculation of interest rate and rate of return.a friend has 4800 that has been saved from her part-time job plus any
Computing the value of stock price with discounting the : computing the value of stock price with discounting the future discounts.a. a record collector has agreed to sell her
Evaluation of alternative projects - time value of : evaluation of alternative projects - time value of money.congratulations you have just won the lottery however the
Calculation of present value and payment of the amount1 : calculation of present value and payment of the amount.1. find the value of an annuity in which 1100 is deposited at
Multiple choice questions based on time value of : multiple choice questions based on time value of money.choose the correct answer from the given option. 1.nbspthe

Reviews

Write a Review

Corporate Finance Questions & Answers

  Weighted average cost of equity

Calculate Company C's weighted average cost of preferred stock and calculate Company B's weighted average cost of equity

  Calculate byfields cost of capital

Calculate Byfields cost of capital. Which projects should Byfield accept and briefly explain why knowing the cost of capital is important for a company.

  Calculate the optimal production each of for four products

Calculate the volume of activity that the company will have to achieve in order to meet the targeted level of profit for each one of the four products.

  What is the required return on okefenokee stock

What is the required return on Okefenokee stock, estimate the company cost of capital and what is the discount rate for an expansion of the company's present business?

  Calculate a detailed company cash budget

Calculate a detailed company cash budget for the forthcoming year. Summarize the sources and uses of cash, and identify the external financing needs for the forthcoming two year

  What is the probability distribution of s3

What is the value at t = 0 of the corridor options sold by Carblays and what is the probability that SocPart gets a payo from the options?

  What changes on the balance sheet

what goes up/down and by how much? Remember that the balance sheet equation will still balance after the changes.

  Calculate the average and expected selling price

Calculate size of the M1 money supply using the following data. Currency plus traveler's checks 25 million dollar, Negotiable CDs 10 million dollar and Demand deposits of 13 million dollar.

  Evaluating the capital investment project

What types of decisions would need to be made before the investment is made? Indicate the main kinds of information required to estimate this capital investment project.

  Term paper on investing in china

Chinas GDP, if it will continue to grow and unemployment rates; is the work force being optimized - Term paper on investing in China

  Determine the beginning value of the bond

A fifteen year bond issued today by Carris, corporation has a coupon rate of 11 percent, a required return of 7 percent and a face value of $1000. The bond will be sold in next six years.

  Regan inc was founded nine years ago by brother and sister

regan inc. was founded nine years ago by brother and sister carrington and genevieve regan. the company manufactures

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