Post a New Question

Business Analysis / Investment

posted by .

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 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 savings 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

1. 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?

Assume that you decide to invest the $4,000 in the high-interest savings account.

a. What future value would you expect to receive at the end of 6 months?

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

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

3. Media World- Write a recommendation to the partners justifying a short-term investment of business funds at this time, recommending one of these investments. Include your analysis from question 1 and 2 in your recommendation.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. accounting I

    A friend of yours wants to start her own pet sitting business. She already has a business license that is required in her city. She has had a personal checking account for years. You have told her that she also needs to open a separate …
  2. Business

    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 …
  3. 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 …
  4. Math

    Can someone steer me in the right direction?
  5. 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 …
  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. business

    INTRODUCTION TO BUSINESS PROJECT 1. Describe a business “case” – from mass media, Internet, or real life identify a business that does or doesn’t protect the environment. Indicate the source of your research. (two pages) 2. …
  8. 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 …
  9. international Business

    Think about what it might have been like to coordinate a meeting sixty-five years ago, before computers and conference calling. How would a business in Toronto have conducted business with someone in London, England, 65 years ago?
  10. international Business

    Think about what it might have been like to coordinate a meeting sixty-five years ago, before computers and conference calling. How would a business in Toronto have conducted business with someone in London, England, 65 years ago?

More Similar Questions

Post a New Question