The amount of $3,357,835.50 is deposited in two banking institutions under the following prerogative, $7.00 of every
Question:
The amount of $3,357,835.50 is deposited in two banking institutions under the following prerogative, $7.00 of every $10.00 must be deposited in the first banking institution and the rest in the second banking institution. The first banking institution pays 4.5% annual compound interest compounded bimonthly; The second institution pays 2.6% annual compound interest compounded quarterly. Both financial operations are carried out over a period of 11 semesters.
a) How much are the capital amounts (present value) of investment in each of the banking institutions?
b) At the end of the 11 semesters, what is the accumulated amount (future value) in each of the banking institutions?
c) How much are the interest amounts paid by each of the banking institutions?
d) How much is the amount accumulated between the two banking institutions at the end of the investment period?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts