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Gigl oxpects to get $25,000 at graduation in two years. She plans to invest at an...
Mastura wishes to invest RM8,000 in a fixed deposit account for one year. She has two options: Maybank which offers 3.35% interest compounded annually. CIMB Bank which offers 3.3% interest compounded semi-annually. Which bank should Allan choose? Give your reason.
Mastura wishes to invest RM8,000 in a fixed deposit account for one year. She has two options: Maybank which offers 3.35% interest compounded annually. CIMB Bank which offers 3.3% interest compounded semi-annually. Which bank should Allan choose? Give your reason.
Suzane is 30 years old and would like to maximize the amount she cam deposit into her retirement account, however she is limited in the amount she can deposit. The IRS limits the maximum deposit amount and she has leftover student debt that also limits her deposit rate. The IRD limit ius $18,500 today and is expected to rise by the cost of iunflation at 2.5% per year. Because of her student debt Suzanne can only deposit $6,000 per year...
TOPC. X51) If an investor buys a 39-week T-bill with a maturity value of $25,000 for $23,543 what annual interest rate (annual yield) will the investor earn? (Express your answer as a percentage, correct to one decimal place.) *52) An investment company pays 7% compounded quarterly. What is the effective rate? (Compute the answer to two decimal places). 53) How much should you invest now at 6% compounded semiannually to have $8,500 to bu a car in 2.5 years? ve...
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? Bank A. 9.5 percent rate compounded semi annually Bank B. 9.4 percent rate compounded monthly Bank C. 9.3...
5. Company A sold old machinery for 200.000 Lira and decided to put this amount in a term deposit, which pays 12% annually. A) Calculate the amount of money that Company A will receive after 2 years of deposit compounded annually. (3p) B) Recalculate the result for part A if the bank offers 12% annual rate but compounded quarterly (that is, interest is calculated for every 3 months based on 12% annual rate) (3p)
Emily Murphy plans to invest RM1,000 extra incomes she earns for her consumption in the next 10 years. She has two different option of investment. The first option is to deposit the money into a saving account that pays 10% annual simple interest for the next 10 years. While the second option is to put the money into a retirement account that pays 10% compounded interest annually for the same period of time. Which option will provide the highest future...
A bank offers the following certificates of deposit: Terms in years Annual nominal interest rate, compounded semi-annually 1 5% 2 6% 3 7% 4 8% The bank requires that interest accumulate at the certificate’s interest rate, and does not permit early withdrawal. The certificates mature at the end of the term. During the next six years, the bank will continue to offer these certificates of deposit. Jeff invests 1000 in the bank. Calculate the maximum amount...
4-87 A 25-year-old engineer is opening an individual retirement account (TRA) at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager estimates she may expect to receive 6% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 5% annual rate during her career. She wishes to start her IRA with as low a deposit as...
4-87 A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager estimates she may expect to receive 6% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 5% annual rate during her career. She wishes to start her IRA with as low a deposit as...