Post a New Question


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 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.

Answer This Question

First Name
School Subject
Your Answer

Related Questions

More Related Questions

Post a New Question