Looking for future value, present value and EAR
Suppose someone offered to see you a note calling for the payment of $1,200 in three years. They offer to sell it to your for $880. You have $880 deposit in the bank that pays a 9.5% nominal rate with daily compounding, and you plan to leave the money in the bank unless you buy the note. The note is not risky-you are sure it will be paid on schedule. Should you buy the note? Check the decision in three ways: 1-comparing your future value if you buy the note versus leaving your money in the bank, 2- by comparing the present value of the note with your current bank account, and 3- by comparing the effective annual rate on the note versus that of the bank account
9 years ago
10
Answer(0)
other Questions(10)
- PROF XAVIER ONLY
- O FIN
- Delete
- Mr everyone please I need ahelp does not matter the money. I have a homework and I have to submit...
- (chicano)PLEASE READ THE HOMEWORK BEFORE ANSWERING TO ME, AND TELL ME WHICH ONE WILL YOU CHOOSE.
- DUE LESS THAN AN HOUR3 breif accounting problems need done right now please !!
- Contact me ONLY if the subjects below are within your scope
- IPR
- Childhood Obesity and Community Health Project
- 1-What is the difference between the end point and equivalence point in a titration? How can you tell them apart? 2-...