Compound interest with non-annual periods you just received, Ask an Expert

Finance

(Compound interest with non-annual periods). You just received a bonus of $2000.

a. Calculate the future value of $2000, given that it will be held in the bank for 8 years and earn an annual interest rate of 7%.

b. Recalculate part (a) using a compounding. That is (1) semiannual and (2) bimonthly.

c. Recalculate parts (a) and (b) using an annual interest rate of 14%.

d. Recalculate part (a) using a time horizon of 16 years in at an annual interest rate of 7%.

What conclusions can you draw when you compare their answers and parts (c) and (d) with the answers in parts (a) and (b)?-------

a. What is the future value of $2000 in a bank account for 8 years and an annual interest rate of 7%? $_______.

b. What is the future value of $2000 in a bank for 8 years at 7% compounded semiannually? $______.

What is the future value of $2000 in a bank account for 8 years at 7% compounded bimonthly? $______.

c. What is the future value of $2000 in a bank account for 8 years at an annual interest rate of 14%? $_______.

What is the future value of $2000 in a bank account for 8 years at 14% compounded semiannually? $______.

What is the future value of $2000 in a bank account for 8 years at 14% compounded bimonthly? $_______.

d. What is the future value of $2000 in a bank account for 16 years at an annual interest rate of 7%? $_______.

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92676258

Have any Question?Write your Review or question?

Related Questions in Financial Management

Choose a publicly traded company to value in preparation

Choose a publicly traded company to value in preparation for a purchase by ABC Company (a fictitious company who has unlimited funds for this purchase). While ABC Company has the funds to purchase the selected company, A ...

Assignmentyou may need to make assumptions for some of the

Assignment You may need to make assumptions for some of the problems. You will not lose points as long as you state these assumptions, and your constraints are logical -according to your assumptions. YOUR MODELS MUST BE ...

Assignment introduction to businessdirections be sure to

ASSIGNMENT : Introduction to Business Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure ...

Answer the following questions 1evaluate the criteria fel

Answer the following Questions : 1. Evaluate the criteria FEL uses to assign managers to project teams. What effi-ciencies do these criteria create? What are the resulting problems? 2. Why is it even more important that ...

Personal savings strategiespart i identify all the lazy

Personal Savings Strategies Part I: Identify all the lazy dollars in your financial life. Identify source, amount and what action might be indicated. Part II. Develop a personal and household savings plan. What savings s ...

Respond to the following questionas part of the financial

Respond to the following question: As part of the financial planning process, a common practice in the corporate finance world is restructuring through the process of mergers and acquisitions (M&A). It seems that on a re ...

As we learned about in our lecture there are three types of

As we learned about in our lecture, there are three types of exercise: Aerobic exercises, e.g. running, cycling, walking, and skiing, are performed for longer intervals and require oxygen. Aerobic exercise primarily uses ...

Discussion forumby thursday of this week search current

Discussion Forum By Thursday of this week, search current news (less than 6 months old) and find an article about a company reporting key financial news (e.g., landing a large contract, reporting unusual profits or losse ...

Watch the video role morality link attached below in the

Watch the Video: Role Morality (Link attached below in the documnet) And answer the following questions: 1. Do you agree that a person should have one set of morals for family and church and another set for his or her em ...

Read through the tree trimming project case in chapter 13

Read through the Tree Trimming Project case in chapter 13 of the textbook. This case refers to the earned value (EV) of the owner, Will Fence's Tree Trimming business. Will briefly describes his techniques for EV. Based ...

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