Compounded daily on its savings accounts

Assignment Help Financial Management
Reference no: EM13976664

Compass Bank is offering 0.8 percent compounded daily on its savings accounts. If you deposit $2,500 today, how much will you have in the account in 15 years?

Reference no: EM13976664

Questions Cloud

Which proton has the larger acceletation : Which proton has the larger acceletation. I know the answer is that they both have the same acceleration but I do not understand why. Could you explain why?
In order to accurately assess the capital structure of firm : In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures to a market value basis. KJM Corporation's balance sheet as of today, January 1, 2004, is as follows:
What is the current market value of the firms debt : The bonds have a 4 percent coupon rate, payable semiannually, and a par value of $1,000. They mature on January 1, 2014. The yield to maturity is 10 percent, so the bonds now sell below par. What is the current market value of the firm's debt?
What is the price of the bond today : A bond that matures in 12 years has a 9% semiannual coupon and a face value of $1,000. The bond has a nominal yield to maturity of 8%. What is the price of the bond today?
Compounded daily on its savings accounts : Compass Bank is offering 0.8 percent compounded daily on its savings accounts. If you deposit $2,500 today, how much will you have in the account in 15 years?
Corporate income tax rate-dividend to grow at constant rate : Refer to Lancaster Engineering Inc. (LEI) information below, what is LEI’s weighted average cost of capital (WACC)? LEI’s corporate income tax rate is 40%. Investors expect LEI’s dividend to grow at a constant rate of 9% in the future. LEI has just p..
What are the objectives of both parties in the exchanges : Using the Marilyn and Len exchanges, analyze the following: What are the objectives of both parties in the exchanges? How would you describe the general "tone" of the exchanges
Estimate the anticipated total annual production volume : Research/estimate the anticipated total annual production volume (rate) of each product variant to be produced and determine the production capacity of the proposed system for single product variant. Discuss the simulation results (individualactiv..
About the expected return : T. Martell Inc.'s stock has a 50% chance of producing a 30% return, a 35% chance of producing a 9% return, and a 15% chance of producing a -25% return. What is Martell's expected return?

Reviews

Write a Review

Financial Management Questions & Answers

  Initiating client services

Assume that you are the owner of an import business that specializes in the sale of floor tiles from around the world. Your business has grown dramatically over the 2 years since its founding, and you are looking for a way to convert your accounts re..

  Future value-present value for various compounding periods

Present value for various discounting periods. Find the present value of $700 due in the future under each of these conditions: Future value for various compounding periods- Find the amount to which $800 will grow under each of these conditions

  What is the companys target debt-equity ratio

Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is 15.5 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio?

  How much should you deposit today in order to withdraw

How much should you deposit today in order to withdraw $5,000 for next 5 years? Your first withdraw will start 6 year from now and your deposit will earn 4% interest.

  Cash accounting measures the deficit

Suppose that the Consumer Price Index fell by 4% between this year and last year while the price of a typical automobile fell by 3%. Cash accounting is easier to implement in practice than is capital accounting. Cash accounting measures the deficit a..

  Value bond outstanding with coupon rate

Yan Yan Corp. has a $10,000 par value bond outstanding with a coupon rate of 5.2 percent paid semi annually and 28 years to maturity. The yield to maturity on this bond is 4.3 percent. What is the price of the bond?

  Outstanding with various times-to-maturity and coupon rates

Microsoft currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on June 1, 2039, approximately 25 years from today. The bond is currently selling for $1,153.06, based on a face ..

  Equipment would require an increase in net working capital

The president of the company you work for has asked you to evaluate tehe proposed acquisition of a new chromatograph for th firm's R&D department. The equipments basic price is $70,000, and it would cost another $15,000 to modify it for special use b..

  Maintenance costs for a regenerative thermal oxidizer

Maintenance costs for a regenerative thermal oxidizer have haven increasingly uniformly for 5 years. The cost in year 1 was $8,000 and it increased by $900 per year through year 5. Compute the present worth of the costs using an interest rate of 10% ..

  Comparing pension plan features

Analytical Solutions Corporation, the company where Melanie works, has a contributory plan in which 5 percent of the employees’ annual wages is deducted to meet the cost of the benefits. The firm contributes an amount equal to the employee contributi..

  Expansion project-requires initial fixed asset investment

Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.55 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wort..

  What is the cost of equity-what is the cost of debt

Fyre Inc has a D/E ratio of 0.85. Its WACC is 9.9%, and the tax rate is 35%. a. If the company’s cost of equity is 14%, what is the cost of debt? b. If instead you know that the cost of debt is 10.5%, what is the cost of equity?

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