Quinnipiac University - School of Business FIN 201- Fundamentals of Financial Management Fall 2018 -In-class Exercises Chapter V Ql: Urban Bank pays 2.5 percent interest, compounded annually, on its savings accounts. Country Bank pays 2.5 percent simple interest on its savings accounts At the end of eight years, how much more money would an investor earn from either bank if he originally deposits S10,000 in both accounts? a. b. If an investor opens an account with $2,000 on cach bank today, how long would it take the investor to reach S5,000 at each bank? Which bank requires the investor to deposit a higher amount in his account today so that he will have $1,500 in two years? c. Q2t A financial advisor claims that she invested $5,000 seven years ago and that this investment is worth $38,700 today. Assuming the obtained rate of return compounds annually, what annual growth rate did she earn? Q3 A local bank has a $6,500 surplus from deposits that would like to lend to a qualified borrower. Irwin SLC alsrs to repay the loan in 18 years with a return of 12.5 percent per annum compounded monthly, while Kane Lim also offers to repay the loan in 18 ycars plus a 14 percent interest rate that will only compound annually. Which private limited company offers a better return to the bank's funds? Q41 Assume an investor sold its holdings in Pickwick Inc. in 2017 at the NYSE for a price of $10,328,000. Unfortunately, he had purchased his 1,000,000 shares in the company in 2009 at a price of $12.383 per share. What was the annual rate of return on this investment? es Di E. 85 Print Layout View Sec 1 Pages: 1 of 1 Words: 0 of 382 116%