Your aunt is planning to invest in a bank CD that will pay 7.5 percent interest semiannually.

Question:

Your aunt is planning to invest in a bank CD that will pay 7.5 percent interest semiannually. If she has $5,000 to invest, how much will she have at the end of four years?

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: 978-0470876442

2nd Edition

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

See More Books

Question Posted: Jun 08, 2012 01:22 AM

See More Questions

Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equity firm that specializes in this business. Suppose Harburtin's equity beta is 0.85, the risk-free...
If you were planning to invest in a company, which of the three types of financial statements would you want most to see? Why?
How much money would you have at the end of 10 years if you made deposits of $4,000 at the end of every three months into an investment that accumulated at 9 compounded quarterly
On January 1, 2018, Rastall Co. signed a long-term finance lease for an office building. The terms of the lease required Rastall to pay $30,000 annually, beginning December 31, 2018, and continuing...
Multiple Choice Questions 1. Nina wants to buy and operate an ice-cream truck but doesn't have the financial resources to start the business. She borrows $5,000 from her friend Max, to whom she...
What is the organizational metaphor? Describe some of the results.
P 5-8 Consolidated workpapers (downstream sales) Pop Corporation acquired 100 percent of Son Corporations outstanding voting common stock on January 1, 2016, for $660,000 cash. Sons stockholders...
(a) What specific recommendations would you give the Johnsons for selecting checking and savings accounts that will enable them to effectively use the first and second tools of monetary asset...
Break-Even Analysis Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted to members who pay a monthly subscription to gain...
A community center is launching a campaign to recruit local residents to help maintain a protected nature preserve area that encompasses extensive walking trails, bird watching blinds, wild flowers,...
Ted Rogers is investing $7,500 in a bank CD that pays a 6 percent annual interest. How much will the CD be worth at the end of five years?
Kate Eden received a graduation present of $2,000 that she is planning on investing in a mutual fund that earns 8.5 percent each year. How much money can she collect in three years?
Achieving full statement coverage during testing of a program means that: a. Every branching statement in the program is traversed at least once during the test run b. All execution paths in the...
Using the figure below, draw the FBD , ?Shear Force and Bending Moment diagrams and find the maximum internal moment for the beam shown. 10 kNm 10 kN 3 m
Suppose the goods market is: Y = 1800 - 100i and the LM curve Y = 500 +591, where x is the last digit of your ID number. Determine the equilibrium income (Y), interest rate (i). Explain the role of...
Complete the chart: [1] Length, L (m) Period, T (s) LogL LogT 0.10 0.63 0.20 0.90 0.30 1.00 0.40 1.27 0.50 1.42 0.60 1.55 0.70 1.68 0.80 1.80 0.90 1.90 1.00 2.02 Plot the data T vs L. [4 (title, axes...
A solid metal sphere with a diameter of 2 cm and a mass of 8 g is used for the following heat transfer experiments. You can assume the temperature throughout the inside of the metal sphere is...
2) A car 1200 kg is in a skid Force of friction 3200N and force of air resistance 1600N. Find the following i) The net force and acceleration of the car ii) The time required to stop from 95 km/hr...
The diagram below is a scatter diagram for two variables: pg47 x. G Estimated regression line H . Required: a Explain what each of the following lines on the diagram represents: b 1 GH 2 GD 3 HD If...
The nitrogen atoms in N2 participate in multiple bonding, whereas those in hydrazine, N2H4, do not. (a) Draw Lewis structures for both molecules. (b) What is the hybridization of the nitrogen atoms...
Edible plant vaccines work because ingested antigens pass through the mucous lining of the digestive tract and impart immunity. True/False
Short-tern investments why is referred stock with a dividend tied to short-tern interest rates an attractive short-term investment for corporations with excess cash?
Collection and disbursement floats which would a firm prefer: a net collection float or a net disbursement float? Why?
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...
The following information is provided by Garden Gears for a new product it recently introduced: Total unit cost $50 Desired ROI per unit $22 Target selling price $72 How much is Garden Gears'...
Solid bank loan P5 million to a borrower on January 1, 2018. The terms of the loan require principal payments of P1 million each year for five years plus interest at 8%. The first principal and...
3) Assuming annual sales of $250,000 and a 50% gross (contribution) margin, calculate the following a. Average collection period if ending receivables total $45,000 b. Ending days-on-hand of...

Your aunt is planning to invest in a bank CD that will pay 7.5 percent interest semiannually.

Question:

Step by Step Answer:

Amount invested today PV 5000 Return exp...View the full answer

Fundamentals of corporate finance

Students also viewed these Accounting questions