Your birthday is coming up and instead of other presents, your parents promised to give you $1,000

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Your birthday is coming up and instead of other presents, your parents promised to give you $1,000 in cash. Since you have a part-time job and, thus, don’t need the cash immediately, you decide to invest the money in a bank CD that pays 5.2 percent quarterly for the next two years. How much money can you expect to earn in this period of time?


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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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