Question

Christine O'Brien, who is self-employed, wants to invest $80,000 in a pension plan. One investment offers 7% compounded quarterly. Another offers 6.75% compounded continuously. a. Which investment will earn the most interest in 4 years? b. How much more will the better plan earn? c. What is the effective rate in each case? d. If Ms. O'Brien chooses the plan with continuous compounding, how long will it take for her $80,000 to grow to $90, 000? e. How long will it take for her $80,000 to grow to at least $90,000 if she chooses the plan with quarterly compounding? (Be careful; interest is added to the account only every quarter.)

Answer #1

You have approached Commonwealth Bank for a loan to buy a house.
The bank offers you a $500 000 loan, repayable in equal monthly
instalments at the end of each month for the next 30 years.
Required:
a. If the interest rate on the loan is 4.5% per annum, compounded
monthly, what is your monthly repayment (to the nearest
dollar)?
b. What is your weekly payment if you wish to pay weekly
instalments and the interest rate is compounding weekly?...

1. Julia purchased an investment grade gold coin today for
$375,000. She expects it to increase in value at a rate of 4.5%
compounded annually for the next 6 years. How much
will the coin be worth at the end of the sixth year?
N
I/Y
PV
PMT
FV
2. Moon has been investing $2,500 quarterly for the past 10
years in an equity mutual fund. How much is the fund worth now
assuming she has earned 8.5% compounded...

Intermediate
1. Multiple compounding periods: Find the future value of an
investment of $2,500 made today for the following rates and
periods:
a.
6.25 percent compounded semiannually for 12 years
b.
7.63 percent compounded quarterly for 6 years
c.
8.9 percent compounded monthly for 10 years
d.
10 percent compounded daily for 3 years
2. Multiple compounding periods: Find the present value of
$3,500 under each of the following rates and periods.
a.
8.9% compounded monthly for five years.
b. ...

PLEASE ANSWER ALL, I am unable to post individually.
Dont not answer, and request to post the remaining separately.
Thank you !
2.Your aunt is planning to invest in a bank CD that will pay 7.0
percent interest semiannually. If she has $13,000 to invest, how
much will she have at the end of four years?
3.Lisa Anderson received a graduation present of $1,000 that she
is planning on investing in a mutual fund that earns 14.00 percent
each year....

Assume that you are nearing graduation and have applied for a
job with a local bank. As part of the bank’s evaluation process,
you have been asked to take an examination that covers several
financial analysis techniques. The first section of the test
addresses discounted cash flow analysis. See how you would do by
answering the following questions. a. Draw time lines for (1) a
$100 lump sum cash flow at the end of Year 2, (2) an ordinary
annuity...

MK Restaurant: Branding of Thai-Style Hotpot
The restaurant industry is one of the most competitive in
Thailand. With a large number of players ranging from restaurants
in five-star hotels, global fast-food chains to small stalls along
the streets and everything in between, the Thais are spoiled for
choice. In addition, as the world becomes globalized, consumers are
familiar with international dishes and would not hesitate to try
new offerings from the other side of the globe. As a...

Please read the article and answear about
questions.
Determining the Value of the Business
After you have completed a thorough and exacting investigation,
you need to analyze all the infor- mation you have gathered. This
is the time to consult with your business, financial, and legal
advis- ers to arrive at an estimate of the value of the business.
Outside advisers are impartial and are more likely to see the bad
things about the business than are you. You should...

Please answer the following Case
analysis questions
1-How is New Balance performing compared to its primary rivals?
How will the acquisition of Reebok by Adidas impact the structure
of the athletic shoe industry? Is this likely to be favorable or
unfavorable for New Balance?
2- What issues does New Balance management need to address?
3-What recommendations would you make to New Balance Management?
What does New Balance need to do to continue to be successful?
Should management continue to invest...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 12 minutes ago

asked 33 minutes ago

asked 39 minutes ago

asked 41 minutes ago

asked 44 minutes ago

asked 52 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago