You wish to invest ₱10,000 for a period of 5 years. Which of the following investments would be best for you? Defend your answer in choosing the bank with the best investment by creating a report showing the comparison of each bank. Bank A: 3.75% simple interest rate Bank B: 3.25% compounded annually Bank C: 3.25% compounded quarterly Bank D: 3.25% compounded monthly Bank E: 3.15% compounded daily
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You wish to invest ₱10,000 for a period of 5 years. Which of the following investments would be best for you? Defend your answer in choosing the bank with the best investment by creating a report showing the comparison of each bank.
Bank A: 3.75% simple interest rate
Bank B: 3.25% compounded annually
Bank C: 3.25% compounded quarterly
Bank D: 3.25% compounded monthly
Bank E: 3.15% compounded daily
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- You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded annually at 7.2% 2nd - PNC offers an account compounded semi-annually at 6.29% 3rd - United offers an account compounded daily at 6.5% You have $2,000 to invest for 1 years. Which account should you choose to have the largest account balance in 1 years? O Wesbanco United PNC Wesbanco will produce $ Number in 1 years. PNC will produce $ Number in 1 years. United will produce $ Number in 1 years. (round dollar values to the nearest cent (two decimal places))You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded semi-annually at 3.99% 2nd - PNC offers an account compounded annually at 3.89% 3rd - United offers an account compounded daily at 3.82% You have $2,200 to invest for 2 years. Which account should you choose to have the best return on your investment?An investor has accumulated $4,450 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 9%. A one-year bank certificate of deposit will pay 11%, but the minimum investment is $7,450. Required: a. Calculate the amount of return the investor would earn if the $4,450 were invested for one year at 9%. b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 19%, and then $7,450 were invested for one year at 11%. c. Calculate the net rate of return on the investment of $4,450 if the investor accepts the strategy of part b. Note: Round your answer to 2 decimal places. a. Amount of return b. Net amount of return c. Net rate of return %
- Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.7% per year (EAR) for 3 years or a. an account that pays 2.3% every 6 months for 3 years? b. an account that pays 7.1% every 18 months for 3 years? c. an account that pays 0.29% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) ..... If you deposit $1 into a bank account that pays 5.7% per year for three years, the amount you will receive after three years is $ (Round to five decimal places.)You were considering depositing your savings in one of three banks, all of which pay 7% interest; bank Capital compounds annually, bank Daisani compounds semiannually, and bank CUM compounds daily. Explain which bank you would choose to deposit.Formulate a system of equations for the situation below and solve.Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the rate of 6%/year, whereas Bank B pays interest at the rate of 8%/year. If Michael earned a total of $128 in interest during a single year, how much did he deposit in each institution? Bank A $___ Bank B $___
- You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92Assume that you have $10,000,000 in your bank account. You wish to withdraw $400,000 per year, at the end of each year, for the next 5 years, after which you wish to have $11,000,000 in the bank. What is the balance in your account after the 2nd year (after the withdrawal)? Hint: you will need first to solve for rate in Excel given all other parameters. Watch signs. Select one: a. $10,366,644 b. $10,600,000 c. $9,600,000 d. $10,488,912Please refer to the formulas in the lesson and on the following website. Pay particular attention to the examples. Scroll to the bottom to review a table with a list of various formula arrangements that may be helpful in completing this assignment. 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10 percent, what will be the value of this investment: a. five years from now? b. ten years from now? c. fifteen years from now? d. twenty years from now? 2) If a business manager deposits $12,000 in a savings account at the end of each year for twenty years, what will be the value of her investment: a. at a compounded rate of 12 percent? b. at a compounded rate of 18 percent? 3) The chief financial officer of a home health agency needs to determine the present value of a $60,000 investment received at the end of year 15. What is the present value if the discount rate is 5%? 4) After completing her residency, an obstetrician plans to invest $9,000…
- You have just been hired as a loan officer at a national bank. Your first assignment is to calculate the amount of the periodic payment (in $) required to amortize (pay off) the following loan being considered by the bank (use Table 12-2). (Round your answer to the nearest cent.) LoanPayment PaymentPeriod Term ofLoan (years) NominalRate (%) Present Value(Amount of Loan) $ every year 12 6 $40,000You want to invest $25,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 4% that is compounded bimonthly (every two months). What is the effective rate of return that you will earn from this investment? 4.067% 4.188% 3.926% 4.152% Suppose you decide to deposit $25,000 in a savings account that pays a nominal rate of 4%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after six months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $25,505.01 $26,015.11 $26,397.69 $24,739.86a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of every three months i Click the icon to view some finance formulas. Rate 3.5% compounded quarterly Time 4 years Financial Goal $20,000 a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.)
