Bank a pays 59 interest with annual compounding bank b pays, Ask an Expert

Finance

Bank A pays 5.9% interest, with annual compounding. Bank B pays 5.8% interest, with monthly compounding. (Please show all work)

A) Calculate the effective annual return in each bank.

B) How long will it take for your money to double in each bank? Please state your answers in years, rounded to two decimal points (e.g., 6.34 years).

C) What bank will you choose if you are a depositor, and can save at either bank?

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92812672

Have any Question?Write your Review or question?

Related Questions in Financial Management

In red is the hypothesis you chose to write about use the

In red is the hypothesis you chose to write about. Use the hypothesis to write the research paper The Shadow Bank System If the shadow bank system is given a platform to develop, then it will provide a solution to the ba ...

International finance assignment- assignment informationthe

International Finance Assignment- Assignment Information The Economist publishes the Big Mac Index on a regular basis to provide an idea of the difference in purchasing power among different countries. In Australia CommS ...

Project risk finance and monitoring assignment -

Project risk, finance, and monitoring Assignment - Report Assessment Description - In this assessment in Part A students are asked to imagine they have been engaged by an external client to develop a report on key aspect ...

Questions 1 discuss a time that you worked with a group in

Questions : 1. Discuss a time that you worked with a group in your current or a past job to solve a problem. Reflecting back, was your group successful? If not, what could have been done differently? Refer to this week's ...

Responsemergers or acquisitions m amp a - this publication

Response Mergers or Acquisitions (M & A) - this publication: Mergers and acquisitions covers all aspects of mergers and acquisitions. Beginning with the pre-combination phase (the period between the deal's announcement a ...

Exerciseas the executive of a bank or thrift institution

Exercise As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your Reserve Bank ...

Assignment1 a chemical company manufactures three chemicals

Assignment 1. A chemical company manufactures three chemicals: A, B, and C. These chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $400 and yields 300 units of A, 100 unit ...

Situationthe law affects the business environment and every

Situation The law affects the business environment and every single business and organization. These laws and regulations often come to light in current events as businesses find themselves represented in the press, eith ...

1 a explain what is meant by the term intermediation and

1. a. Explain what is meant by the term intermediation and identify and explain two types of intermediation provided by financial institutions. b. Give an example of a security issued by a financial institution and of a ...

Assignment all assignments should be written in your own

Assignment All assignments should be written in your own words and provide examples and opinions beyond the textbook or any other source you get them from. I will be looking for more of your opinions and examples beyond ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert