Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Indexation Strategy: Your bank has stated that it pays 3% interest, annually compounded, for a 7-year certificate of deposit. You have decided to invest $ 10,000 for 7 years. If the average rate of inflation during the 7 yeas is 2.5%/year during the 7 years, and you anticipate being in the 20% tax bracket for the first 3 years, and 40% for the next 4 years, what is your real, after tax return? Should you make the deposit?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939130

Have any Question? 


Related Questions in Basic Finance

What is the present value of a 10-year annuity of 3000 per

What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent. Use Appendix D for an approximate answer, but calculate your fi ...

A machine will produce 10000 units a year the units are

A machine will produce 10000 units a year. The units are priced at $30 and have a variable cost of $7. There is a fixed cost of $50000 per year. the company pays no tax and has 0 tax rate. What is the present value of op ...

In the summer of 2008 at heathrow airport in london

In the summer of 2008, at Heathrow airport in London, Bestofthebest (BB), a private company, offered a lottery to win a Ferrari or 108 comma 000British pounds, equivalent at the time to about $ 216 comma 000. Both the Fe ...

Explain why end users who conduct their risk management

Explain why end users, who conduct their risk management operations in the treasury department, should not require the treasury department to be a profit center ? Distinguish the typical objectives of a dealer engaging i ...

1 when are tests of simple main effects used and what do

1. When are tests of simple main effects used, and what do researchers learn from them? 2. Who developed the rationale and computations for the analysis of variance? 3. Under what two circumstances would you use a multiv ...

A scarf company built a new parking garage in a business

A Scarf Company built a new parking garage in a business district. For a random sample of 100 days, daily fees collected averaged $1,800, with a standard deviation of $500. Construct a 90% confidence interval estimate of ...

Assignmentcareers in financefinance is an exciting field in

Assignment Careers in Finance Finance is an exciting field in need of intelligent, skilled people. The job opportunities range from corporate finance; financial planning; investment banking; insurance; and real estate fr ...

Company x has a 7 percent semiannual coupon bonds that

Company X has a 7 percent semiannual coupon bonds that sells for $976, has a face value of $1,000, and has a yield to maturity of 8.079 percent. How many years will it be until this bond matures?

Interpret the following statements about value at risk so

Interpret the following statements about Value at Risk so that they would be easily understood by a nontechnical corporate executive: a. VAR of $1.5 million, one week, probability = 0.01. b. VAR of $3.75 million, one yea ...

1 give an example of why a review of bank assets may

1. Give an example of why a review of bank assets may indicate risk or opportunity of which you were not aware 2. Why review the disclosure of the market value of investments versus the book amount of investments for ban ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro