Interest rate compounded annually to double

Assignment Help Financial Management

Reference no: EM13980763

1. Suppose you deposit $2,500 today in a savings account at 3.5% interest compounded annually. Assuming no withdrawal, how much would you have at the end of 10 years?

2. Suppose you owe a creditor $10,000 due in a single payment in 5 years. How much should your creditor be willing to accept now if he can earn 8% on his money?

3. About how many years will it take for $100,000 placed in a bank account at 7% interest rate compounded annually to double?

Reference no: EM13980763

Questions Cloud

Problem regarding the transfer tax credit : In 2015, Christian wants to transfer as much as possible to his 8 adult married children (including spouses) and 13 minor grandchildren without using any unified transfer tax credit, A) How much can Christian give without using any unified transfer..

Essay - climate change and environmental crisis : Essay Topic - Climate Change and Environmental Crisis. Write a 4-6 page, typed, double-spaced argumentative essay on the following question: Can we avoid ecological disaster (in particular, ecological disaster as a result of global warming) within..

What is difference between tax deductions and tax credits : What is the difference between tax deductions and tax credits? Which one is more beneficial in reducing a tax payer's tax liability?

What is the maximum percentage of social security : A 68-year old taxpayer has $20,000 in social security income and has significant other taxable retirement income. What's the maximum percentage of Social Security that the taxpayer might be required to include in taxable income?

Interest rate compounded annually to double : Suppose you deposit $2,500 today in a savings account at 3.5% interest compounded annually. Assuming no withdrawal, how much would you have at the end of 10 years? About how many years will it take for $100,000 placed in a bank account at 7% interest..

What is an indifference curve and why is it called : Explain why indifference curves are convex shaped when mapping two goods like food and clothing, while they are more linear when mapping two goods that are close substitutes like Coke and Pepsi.

What happens to the brightness of bulb : Now consider what happens when the switch is opened. What happens to the brightness of bulb A? What happens to bulb C? Please be sure to explain why.

Increase this investment annually : Blushing Rose invests $1,000 into her Roth IRA. She can increase this investment annually by $1,000 until she reaches the $5,000 annual contribution limit. She will then invest $5,000 per year at the beginning of each year for 30 years. How much will..

Frank smith plumbing : Analyzethe case study, "Frank Smith Plumbing." Analyze the "Frank Smith Plumbing's Financial Statement" spreadsheet. Comparethe cost of the truck to the cash flow records

User Account

All Pages