Question

Big-Bucks Financial provides a Regional Market Growth Fund that pays you 6 percent per year. If...

Big-Bucks Financial provides a Regional Market Growth Fund that pays you 6 percent per year. If you invest $20,000 today,

  1. How much will you have in the beginning of 3rd year from now? [2 points]
  2. How much would you get if the fund pays simple interest during the three years. [2 points]
  3. How much interest you’ll get when compounding for the 3 years? [4 points]
  4. How much more interest you’ll get when compounding for the 3 years compared with simple interest?

need the formula and soloution

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
7 When you get your big bonus at the end of the year, how much cash...
7 When you get your big bonus at the end of the year, how much cash should you invest each year to have 1 Million in 30 years if you can earn 11% ? - If instead of waiting to the end of the year, you invest starting today, how much do you add annually to reach the 1 million in 30 years earning 11 % ?
Congratulations! You just finished up your MHA. You are now making the big bucks!! You are...
Congratulations! You just finished up your MHA. You are now making the big bucks!! You are pulling down $75,000 a year. Your estimated payroll taxes are 20%. You also have a small healthcare consultancy and you make $100 a month for your wonderful advice.    You have a lot of expenses: You bought a new car - the car note is $350 a month. Gas for your car is $50 a month You have a mortgage of $850. Health insurance...
Q1. An investment company offers you an annuity of $20,000 per year for the next 10...
Q1. An investment company offers you an annuity of $20,000 per year for the next 10 years. The interest rate is 10%. How much would you be willing to pay for the annuity? Q2. You have $100,000 to invest now and would also like to invest $6,000 for each of the next five years in an investment which returns 8% per year. With annual compounding, how much will your investment be worth in 5 years?
1. A $1,000bond pays 4 3/4% simple interest per year. What is the total amount paid...
1. A $1,000bond pays 4 3/4% simple interest per year. What is the total amount paid after six years? 2.A friend borrows $2,500, agreeing to pay3.85% simple interest. The loan, plus interest, is to be paid back in seven years. How much interest was paid back to you? How much did you receive in total after the seven years? 3.You lend a friend $3,000. You want your friend to pay you back $4,000in total in five years. What simple interest...
You make monthly deposits of $180 into an account that pays 3% per year. How much...
You make monthly deposits of $180 into an account that pays 3% per year. How much larger would the balance be after 4 years if interest is compounded continuously compared to monthly? Express your answer in $ to the nearest $0.10.
You are a young personal financial adviser. Molly, one of your clients approached you for a...
You are a young personal financial adviser. Molly, one of your clients approached you for a consultation about her plan to save aside $450,000 for her child’s higher education in the United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in savings account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank...
a. You are considering an investment of $55,000 in an account that pays 8.3 percent compound...
a. You are considering an investment of $55,000 in an account that pays 8.3 percent compound interest. How much less interest would you earn in a 3-year period if the interest was simple? (10%) b. Your firm wants to borrow $250.000 for 10 years from the bank in order to pursue a big investment opportunity. The bank will lend the money but it requires an upfront fee of $ 10,000. The interest is 6.3%. How much will you be paying...
You are a young personal financial adviser. Molly, one of your clients approached you for consultation...
You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B...
Question 2 (11 marks) You are a young personal financial adviser. Molly, one of your clients...
Question 2 You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually....
You currently have $20,000 in a bank account that pays you 5 percent interest annually. You...
You currently have $20,000 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years? You currently have $20,000.01 in a bank account that pays you 5 percent interest annually. You plan to withdraw $800 (starting 1 year from now) every year for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT