What is the effective annual rate of interest on deposit

Assignment Help Financial Management
Reference no: EM131998117

1. What is the effective annual rate of interest on a deposit that pays interest of 10% continuously compounded?

A) 10.517% B) 1.105% C) 9.531% D) 10.000%

2. Eighteen years from now, 4 years of college are expected to cost $150,000. How much more must be deposited into an account today to fund this expense if you can earn only 8% on your savings rather than the 11% you hope to earn?

A) $12,211.18 B) $14,006.41 C) $13,609.21 D) $14,614.03

Reference no: EM131998117

Questions Cloud

Calculate the company weighted average cost of capital : Calculate the company's weighted average cost of capital. Use the dividend discount model.
What is your estimate of the current price per share : Suppose Dantzler has $67 million of debt and 10 million shares of stock outstanding. What is your estimate of the current price per share?
Valuing business can sometimes be very complex : Valuing a business can sometimes be very complex and there is many different approachs.
What is the expected spot rate in one year : Assume the inflation rate in the United States is 7 percent and in Sweden is 2 percent. What is the expected spot rate in one year?
What is the effective annual rate of interest on deposit : What is the effective annual rate of interest on a deposit that pays interest of 10% continuously compounded?
One of two large organizations that rate corporate bonds : One of two large organizations that rate corporate bonds is. Bond rating systems. Fundamental bond analysis would lead an investor to.
Despondus corporation weighted average cost of capital : What is Despondus Corporation's weighted average cost of capital (WACC)?
Professional organization or divorce attorneys : Lloyd is a divorce attorney who practices law in Florida. He wants to join American Divorce Lawyers Association, professional organization or divorce attorneys
What are the amounts of total net operating capital : What are the amounts of total net operating capital for both years? What is the ROIC for 2016?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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