Accounting assignment

Question 1 Delia Martin has $10,000 that she can bondory in any(prenominal) of terzetto nest egg accounts for a 3- grade period. slang A compounds following on an classbook bottom, trust B compounds beguile twice each year and posit C compounds interest each quarter. All three sticks s eat up a express annual interest say of 4 percent. a)What hail would Ms Martin have at the oddity of the third year leaving all interest gainful on deposit in each bank? Bank A (principal+ interest)10,000 x 1.04^ 3=$11248.64 Bank B(principal+ interest)10,000 x 1.02%^6=$11261.62 Bank C(principal+ interest)10,000 x 1.01^12=$11268.25 So, Bank A interests: 11,248.64-10,000=$1,248.64 Bank B interests: 11,261.62-10,000=$1,261.62 Bank C interests: 11,268.25-10,000=$1,268.25 b) What effective annual identify (EAR) would she earn in each of the banks? Bank AFor bank A compounds interest on an stated annual prat, thus, its annual interest rate is 4%. Bank B1+4%/22-1=4.04% Bank C1+4%/44 -1=4.06% c) On the basis of your findings in A and B, which bank should Ms Martin deal with? wherefore? I suggest Ms Martin to choose bank C. Because of bank C has higher annual interest ratetherefore, she can deposit in bank C to obtain higher interest. d) If a fourth part bank -Bank D, also with a 4percent stated interest rate - compounds interest continuously, how much would Ms Martin have at the mop up of the third year?

Does this pick change your recommendation in c? Explain why or why not? If deposit in bank D, Ms Martin could gains interest incontrovertible principal as infra 10000 x 2.7183x0.04 =$11 274.83 This result would be affecting the ! tracing in question C. Because compound interest leave diminish continuously based on the generated interest in a certain term plus principal, and thus, Ms Martin could receiving much interest if she deposits in bank D. Q2- You have been asked for your advice... If you want to liquidate a full essay, order it on our website: OrderCustomPaper.com

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