Suppose you invest $5,000 for five years at an interest rate of 8 percent. How much simple interest would you earn over the five years? How much compound interest would you earn? What is the explanation for the difference between these two amounts?
Answer to relevant QuestionsSuppose you can earn 10 percent on an investment rather than 8 percent. After 20 years, the future value will be 25 percent greater. True or false? Explain. Suppose an investment has been offered to you that requires an initial outlay of $10,000. Ten years from now the investment will pay you $20,000. If you think an investment of this type should offer a return of 8 percent, ...What is a savings schedule? Explain the following elements of a balance sheet and give an example of each: a. Liquid assets b. Investment assets c. Lifestyle assets d. Current liabilities e. Noncurrent liabilities Discuss the process of setting goals. List several general goals that you think will be important to you after graduation and then indicate which specific goals you will use in your annual budgets.
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