Bill Casler bought a $2000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest.
Question:
(a) What is the value of the CD when it matures?
(b) If their agreement allowed the friend to earn a
10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (4 reviews)
a P 2000 t 912 ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
Question Posted:
Students also viewed these Calculus questions
-
Mary Stahley invested $2500 in a 36-month certificate of deposit (CD) that earned 8.5% annual simple interest. When the CD matured, she invested the full amount in a mutual fund that had an annual...
-
Portia has $10,000 to invest. She is considering a certificate of deposit (CD) that is expected to yield 5%, a mutual fund expected to yield 7%, and stocks expected to yield 9%. The amount invested...
-
1. How much money must you deposit at 4% interest compounded quarterly in order to earn $406.04 interest in 1 year? 2. Savings Account How much money must you deposit at 2.1% interest compounded...
-
Terri is single and age 32. She reported AGI of $70,000 in tax year 2021. She is an active participant in her employers pension plan. What is the maximum deductible IRA contribution she can make for...
-
Why do airplanes normally take off into the wind?
-
Creditors often will file claims for more than the amount they are owed. Debtors sometimes dispute that they even owe the creditor anything. For example, a creditor may file a claim for $10,000 in...
-
For a multi-component system, the chemical potential is equivalent to (a) Molar free energy (b) Molar concentration difference (c) Molar free energy change (d) Partial molar free energy
-
Machinery purchased for $52,000 by Carver Co. in 2008 was originally estimated to have a life of 8 years with a salvage value of $4,000 at the end of that time. Depreciation has been entered for 5...
-
Consider the Gradebook ER diagram with cardinality ratios and structural constraints: Figure 2.15 Understanding Databases: Concepts and Practice, Dietrich, Wiley, 2021 1 offering of letterGrade SID...
-
The management of the WBC television network has been celebrating for days. What a coup! After several unsuccessful attempts in recent decades, they finally have hit the big jackpot. They have won...
-
An investor owns several apartment buildings. The taxes on these buildings total $30,000 per year and are due before April 1. The late fee is 1 2% per month up to 6 months, at which time the...
-
Suppose you lent $5000 to friend 1 for 18 months at an annual simple interest rate of 9%. After 1 year you need money for an emergency and decide to sell the note to friend 2. (a) How much does...
-
How will Principles #11 and #14 (in Exhibit 2) enable the new business strategy? InsuraCorp has several business units that provide financial products, services, and support for one or more of the...
-
How do you get a depreciation expense and accumulated depreciation on equipment? Explain briefly
-
How does the vendor benefit in a vendor-managed inventory system? The vendor is able to grow its sales and its business. The vendor gets to do more work. The vendor gains a business for the long term...
-
The process of finding the present value of cash flows expected to be received in the future. Elaborate Return on investment Discounting Compromising Compounding Liquidity.
-
What are the main steps involved in performing a bank reconciliation? How do outstanding checks and deposits-in-transit affect the bank reconciliation process?
-
An all-inclusive cruise and a return flight, if bought separately, would in total cost $910. The cruise costs $270 more than the flights. When you buy them together you get 25% off the price of the...
-
1. Prepare a memo for Mr. van Wie explaining how RA would invest to minimize both risk and exposure to changing interest rates. Give an example of a portfolio that would accomplish this objective....
-
Michelles trust is subject to 3.8% surtax on the lesser of the trusts net investment income or the excess of the trusts adjusted gross income over the $12,400 threshold (the highest trust tax rate)....
-
On the figure, label a. One critical point. b. One point with a positive derivative. c. One point with a negative derivative. d. One point with a positive second derivative. e. One point with a...
-
Find the fifth derivative of x(l + x)(2 + x)(3 + x)(4 + x). Some higher derivatives can be found without a lot of calculation.
-
An object on Saturn that follows p(t) = -5.2t2 - 2.0t + 50.0. The following equations give the positions as functions of time of objects tossed from towers in various exotic solar system locations....
-
A skier glides down a frictionless hill of 100 meters high, then ascends another hill, with a height of 90 meters, as shown in the figure below. a) What is the speed of the skier when they reach the...
-
The atoms in a nickel crystal vibrate as harmonic oscillators with an angular frequency of 5.5x 1013 rad/s. The mass of a nickel atom is 9.75 x 10-26 kg. What is the difference in energy between...
-
Ballistic pendula are used by forensic analysts to calculate the velocity of a bullet. The bullet is shot into a target suspended by a long, thin, narrow rod; the degree to which the pendulum is...
Study smarter with the SolutionInn App