You have $100 and a bank is offering 5% interest on deposits. If you deposit the money

Question:

You have $100 and a bank is offering 5% interest on deposits. If you deposit the money in the bank, how much will you have in one year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

See More Books

Question Posted: Jan 14, 2012 02:19 AM

See More Questions

A bank is offering to sell 6-month certificates of deposit for $9500. At the end of 6 months, the bank will pay $10,000 to the certificate owner. Based on a 6-month interest period, compute the...
A bank is offering an interest rate call with an expiration of 45 days. The call pays off based on 180-day LIBOR. The volatility of forward rates is 17 percent. The 45-day forward rate for 180-day...
If you need $20,000 in 12 years, how much will you need to deposit today if you can earn 9 percent per year compounded continuously?
Two tiny particles having charges of 5.76 C and -7 C are placed along the y-axis. The 5.76 C particle is at y = 0 cm, and the other particle is at y = 48.74 cm. Where must a third charged particle be...
The coordinates of point A and point B are obtained from the boat at point O. What is the value of ? Deblt Credit S11,000 140,000 Accounts Cash Accounts Receivable Prepaid Rent Supplies Equipment...
At the end of 2022, Sapporo Group tests a machine for impairment. The machine is carried at depreciated historical cost, and its carrying amount is 150,000. It has an estimated remaining useful life...
What is a PRR and what is it intended to accomplish?
Morgan Leasing Company signs an agreement on January 1, 2014, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6...
Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory Units...
For each of the following narratives, draw an ERD diagram which indicates the entities and their attributes (if noted). Identify and label significant relationships between pairs of entities. 1- A...
Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this years crop with him. Assume he produces...
You expect to have $1000 in one year. A bank is offering loans at 6% interest per year. How much can you borrow today?
Jupiter Ltd. reported the following: Required: 1. What is the amount of the taxable income or loss in each year? What is the amount of the loss carryforward at the end of 20X8? 2. Prepare a journal...
A battery and four identical light bulbs are arranged in the circuit of Figure P31.3. Rank the current magnitudes at the nine lettered locations from greatest to smallest. Data from Figure P31.3 90 e...
Consider two speres in a system-Sphere 1 has mass $M$ and radius $2 R$, while the second Sphere has mass $2 M$ and radius $R$. If the two spheres touch each other, find the magnitude of their...
(a) How much gravitational potential energy does a system comprising a 150-kg object and the Moon have if the object is one Moon radius above the ground? (b) How far should this object be from the...
The Earth has a mass of $5.972 \times 10^{24} \mathrm{~kg}$, while the Moon has a mass of $7.348 \times 10^{22} \mathrm{~kg}$. Calculate the gravitational potential energy of the Earth-Moon...
The acceleration of gravity on the surface of the Moon is about $1 / 6$ of Earth's $g$. If the radius of the moon is $1,737.4 \mathrm{~km}$, approximate the mass of the Moon from the given...
True or false? Explain your answers as needed. A dependency relationship models a two-class association in only two instances. To enforce encapsulation, attributes should generally be declared...
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
Robert Curl, Richard Smalley, and Harold Kroto were awarded the Nobel Prize in Chemistry in 1996 for the discovery of the soccer ball shaped molecule C 60 . This molecule was the first of a new...
Float suppose a firm has a book balance of $ 2 million. At the automatic teller machine (ATM), the cash manager finds out that the bank balance is $2.5 million. What is the situation here? If this is...
Short-term investments for each if the short-term marketable securities given here provide an example of the potential disadvantages the investment has for meeting a corporations cash management...
Agency issues It is sometimes argued that excess cash held by a firm can aggravate agency problems and, more generally, reduce incentives for shareholder wealth maximization how would you frame the...
How is decision-making in organizations best supported by Management Accounting (a descriptive nature) and how should it be supported by Management Accounting (a prescriptive nature)? Is there a gap...
Discuss the thermodynamic principles governing the separation of azeotropic mixtures using advanced distillation techniques such as pressure swing distillation, extractive distillation, and hybrid...
respond to the discussion In the IMA article, Activity-Based Costing (ABC) is explained as a cost allocation technique that traces indirect costs (often referred to as "overhead") to specific cost...

You have $100 and a bank is offering 5% interest on deposits. If you deposit the money

Question:

Step by Step Answer:

Plan You need to compute the future value FV based on a 5 interest rate ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions