What is the maximum future value obtainable

Assignment Help Finance Basics

Reference no: EM131111573

René Levin wishes to determine the future value at the end of 2 years of a $15,000 deposit made today into an account paying a nominal annual rate of 12%.

a. Find the future value of René's deposit, assuming that interest is compounded

(1) Annually,

(2) Quarterly,

(3) Monthly, and

(4) Continuously.

b. Compare your findings in part a, and use them to demonstrate the relationship between compounding frequency and future value.

c. What is the maximum future value obtainable given the $15,000 deposit, the 2-year time period, and the 12% nominal annual rate? Use your findings in part a to explain.

Reference no: EM131111573

Questions Cloud

Approach for solving algebraic word problems : Question: In your own words, describe a step-by-step approach for solving algebraic word problems.

Determine the future value that janet : Determine the future value that Janet will have at the end of 10 years, given that end-of-period deposits are made and no interest is withdrawn, if (1) $300 is deposited annually and the credit union pays interest annually. (2) $150 is deposited semi..

Convert the facility to manufacture the panels : If you could sell only 6,000 units for the year but the market would allow you to raise your sales price; what is the average sales price you would need to breakeven on your cash flow?

Confidence interval for the proportion of adults : Construct a 90% confidence interval for the proportion of adults aged 18 or older who believe there is too little spending on national defense.

What is the maximum future value obtainable : Compare your findings in part a, and use them to demonstrate the relationship between compounding frequency and future value. What is the maximum future value obtainable given the $15,000 deposit, the 2-year time period, and the 12% nominal annual ra..

Discuss the importance of a narrative hook : Discuss the items that should be included in the abstract and introduction of a research proposal. In addition, discuss the importance of a narrative hook and why rhetorical questions should be avoided as a narrative hook.

Compute the minimum of these numbers : Suppose that the array X consists of real numbers X[1], X[2], ..., X[N]. Write a pseudocode program to compute the minimum of these numbers.

Determine the resulting point : The point (1, -2) is on the graph f(x). Describe the following transformaions on f(x), and determine the resulting point for each of the following equations.

Function of operations management in organisations : Learning Outcomes On successful completion of this assignment you will be able to: • Identify and analyse the function of operations management in organisations• Critically discuss the way operations contribute to organisational competitiveness and ..

User Account

All Pages