IdeasCuriosas - Every Question Deserves an Answer Logo

In Business / High School | 2014-07-10

Consider the $50,000 excess cash. Assume that Gary invests the funds in a one-year CD.

a. What is the CD's value at maturity (future value) if it pays 10 percent (annual) interest?

b. What will its future value be if the CD pays 5 percent interest? If it pays 15 percent interest?

Asked by Marquerite149

Answer (1)

By calculating interest at 10% for 1 year on CD Interest = 50,000 * 10 * 1/100 Therefore future value = 50,000 + Interest = 55000
Similary at 5%, future value is 52500 and at 15%, future valuer is 57500

Answered by Pulkit | 2024-06-10

Related Questions in Business

[Answered] An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?

[Answered] Select the best answer for the question. 6. __________ is the amount of time you spend studying or working versus the amount of time you spend on yourself. A. Self-care B. Time management C. Work-life balance D. Self-actualization

[Answered] Mike is an agent making purchase orders for Tammy. Tammy passes away before the agency contract is voluntarily ended. The agent has already done half of the work assigned. What is the result related to the status of the agency?

[Answered] Braxton and Kaih have just inherited $50,000. Which of the following statements is true? A. They should invest this money in corporate bonds to save on taxes. B. The $50,000 will be taxable income in the year received, and they should invest this money in corporate bonds to save on taxes. C. The $50,000 will be taxable income in the year received. D. The $50,000 is excluded from gross income.

[Answered] Solve the problem using $6.2 \%$, up to $ \$128,400$ for Social Security tax and using $1.45 \%$, no wage limit, for Medicare tax. What are the social security and Medicare withholdings (in \$) for an executive whose annual gross earnings are $ \$131,500$? Social Security $ \$\square$ Medicare $ \$\square$