Business

posted by .

Envision you have served as business manager for over two years. you noticed that for the last 12 months the business has regularly had cash assets of$20,000 or more at the end of each month.you have found a 6-month certificate of deposit that pays 6% compounded monthly.To obtain this rate of interest,you must invest a minimum of $2,000. you have also found a high interest saving account that pays 3% compounded daily.Based on the cash position of the business at this time,assume that you decide to invest $4,000.

Assume that you will invest the full amount in a certificate of deposit.
a.What would be the future value of the CD at the end of the investment term?

b.How much interest would the investment earn for the period?

c.What would be the effective rate of the investment?

  • Business -

    Hi Kara,did you ever find the answer to this problem? I'm in the same boat at the moment.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting

    Benjamin O'Henry has owned and operated O'Henry's data Service since it beginning ten years ago.From all appearances,, the business has prospered. in the past few years, you have become friends with O'Henry and his wife. Recently, …
  2. Math

    Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly had cash assets of $20,000 or more at the end of each month. You have found …
  3. Math

    Can someone steer me in the right direction?
  4. Math

    I really need some help with this one. Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly had cash assets of $20,000 or more at …
  5. Business Analysis / Investment

    Help! I have had several solutions and cannot come up with an answer. Thank you! Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly …
  6. Business/ Math/ Investment

    I Only Need Question 3. I have completed the rest. I have had several solutions and cannot come up with an answer. Thank you! Envision that you have served as business manager of Media World for over 2 years. You have noticed that …
  7. algebra 8

    business. A restaurant manager lost $415 in business during the month of january . business picked up in February, and he ended that month with a profit of $1580 A. What was the manager's profit after January and February?
  8. Math

    A restaurant manager lost $415 in business during the month of January. Business picked up in February, and he ended that month with a profit of $1580. What if the restaurant lost $245 in business during the month of March. What was …
  9. Math

    Envision that you have served as business manager of Media World for over 2 years. You have noticed that for the last 12 months the business has regularly had cash assets of $20,000 or more at the end of each month. You have found …
  10. Business Math

    a) You have N$ 10,000 to invest, which you want to grow to N$ 100,000. If the bank offers you an interest rate of 6% p.a. compounded monthly, how long must you invest the money for (in months or years)?

More Similar Questions