Which pays simple interest

Assignment Help Financial Management
Reference no: EM131453670

You are saving to buy a $185,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 7 percent.

How long will it take your initial $102,000 investment to reach the desired level at First Bank, which pays simple interest? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Number of years

How long will it take your initial $102,000 investment to reach the desired level at Second Bank, which compounds interest monthly? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Number of years

Reference no: EM131453670

Questions Cloud

Structure of industry research paper : Built up a picture of these organisations network usage and design, you will then have integrated the course material in your description while focusing on the specifics of each organisation. You are not required to contact anyone from these organ..
Negotiating for the terms of legal settlement : You are negotiating for the terms of a legal settlement, and your opponent’s attorney has presented you with the following alternative settlement alternatives:
Possible maximum percentage return on the investor funds : what would be the possible maximum percentage return on the investor's funds (excluding commissions)? What would have been the return if the investor had not bo
To which school of thought do you subscribe : The other thought is that the sociologist has a responsibility to not only learn, but to help improve the lives of others.
Which pays simple interest : How long will it take your initial $102,000 investment to reach the desired level at First Bank, which pays simple interest?
What is the maximum lease payment it will agree to pay : Your company is considering either purchasing or leasing an asset which costs $1,000,000.
What is the profitability index of the project : What is the profitability index (PI) of the project, if the company’s cost of capital is 14.92 percent?
What are the most significant components of a school : What are the most significant components of a school/facility plan? Why?
Comment on their efficacy in terms of consumer protection : Do a research on these two regulatory agencies and comment on their efficacy in terms of consumer protection.

Reviews

Write a Review

Financial Management Questions & Answers

  What required return must investors be demanding on stock

Storico Co. just paid a dividend of $1.45 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent divid..

  Depreciated straight-line to zero over its seven-year life

Your firm is contemplating the purchase of a new $759,500 computer-based order entry system. The system will be depreciated straight-line to zero over its seven-year life. It will be worth $49,000 at the end of that time. Suppose your required return..

  Use Goal Seek in order to find this rate of return

Assume “Jane” saves $10,000 per year for 10 years starting at age 25. At age 35 she no longer is able to save but leaves her accumulated savings invested until age 65 when she retires.  At what assumed rate of return are John and Jane’s wealth at age..

  What is the stocks current rate of value per share

GROWTH VALUATION Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the stock’s current..

  Capital asset pricing model-the required rate of return

The stock of Verde Enviro-Systems has a beta of 1.9. If the current risk-free rate is 3% and the market risk premium is 5% then according to the Capital Asset Pricing Model, what should be the required rate of return (report as a percentage, i.e. 11...

  What is their break-even level of operating income

Home Depot Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, whereas Lowes Companies,. Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million Lowes' interest expense is $239 mi..

  Each group member should deliberate

In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.

  Value of subject property using overall capitalization rate

A comparable property sold for $5,000,000. The appraiser determined that the sale price included favorable financing from the seller worth $250,000. What is the indicated value of the subject property based on price per square foot? What is the indic..

  Continuously compounded libor rates

Suppose that the 3 month and 6 month continuously compounded LIBOR rates are 3% and 3.5% respectively. Assume that LIBOR is used as the risk-free discount rate. Consider a company which plans to borrow in the future and fears that short term rates wo..

  What is projects npv using the risk adjusted discount rate

What is the project's NPV, using the company's weighted cost of capital?- What is the project's NPV, using the risk-adjusted discount rate?

  What are the IRRS of the two projects

You are choosing between two projects. The cash flows for the project are given in the following table ($ million) : What are the IRRS of the two projects? Why do IRR and NPV rank the two projects differently?

  Fixed-income asset with duration of five years

You own a fixed-income asset with duration of five years. If the level of interest rates, which is currently 8.5%, goes down by 15 basis points, how much do you expect the price of the asset to go up (in percentage terms)? What is the price of the as..

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