Business Math, Business Economics

Assignment Help:
Scenario: A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option would be the best for his investment.

Option 1: 6% compounded interest quarterly for 5 years.
Option 2: 8% compounded interest annually for 5 years.
Option 3: 14.5% simple interest for 10 years.
Write a professional memo that covers the following information:
Explain to the client the main differences between simple interest versus compound interest.
Explain the results of the three different options by showing the client the step-by-step calculations.
Explain which investment option is better for your client and why.

Related Discussions:- Business Math

Compute internal rate of return, You are evaluating two (mutually exclusive...

You are evaluating two (mutually exclusive) methods of strip-mining a resource-rich area. The alternatives are very similar, though one important difference is in the scale of the

Introduction to business economic, Ask question different between Mar...

Ask question different between Marginalism & incrementalism #Minimum 100 words accepted#

Determine the monopoly price and monopoly quantity, 1. A monopolist faces t...

1. A monopolist faces the industry demand Q=400-0.5 p and has constant marginal costs of 8, with no fixed costs. a) What is the monopoly price? What is the monopoly quantity?

Firm commitment offering, An underwriter guarantees to increase a fixed amo...

An underwriter guarantees to increase a fixed amount of capital through an initial public offering (IPO).

Eco paper, discuss whether indian consumer goods industry is growing at the...

discuss whether indian consumer goods industry is growing at the cost of future profitability

Economic analysis of projects, Economic analysis is done from the viewpoint...

Economic analysis is done from the viewpoint of society or economy as a whole. The evaluation is done from a wider angle not merely in financial terms. . In 1936, Flood Control Act

Baumol''s, the basic assumption of the static model

the basic assumption of the static model

How is effort monitored onto a project, How is effort monitored onto a proj...

How is effort monitored onto a project? It is significant that the effort to be spent onto activities is reassessed on a regular basis – why is it so very important? Effort is

Political lobbying, Tasks "Accounting standard setting is a political lo...

Tasks "Accounting standard setting is a political lobbying process, and as such offers various Opportunities and means for interested parties to affect its outcomes." Require

Write Your Message!

Captcha
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