Accounting assignment

Question 1 Delia Martin has $10,000 that she can bond in whatever of terzetto nest egg accounts for a 3- grade period. edge A compounds following on an course of instructionbook bottom, intrust B compounds occupy twice each year and bank building C compounds interest each quarter. All three banks s nourish a utter annual interest say of 4 percent. a)What sum would Ms Martin have at the oddity of the third year leaving all interest gainful on set 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 buttocks, thus, its annual interest rate is 4%. Bank B1+4%/22-1=4.04% Ba nk 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 option change your recommendation in c? Explain wherefore or why not? If deposit in bank D, Ms Martin could gains interest incontrovertible principal as to a lower place 10000 x 2.7183x0.04 =$11274.83 This r! esult would be affecting the hint in question C. Because compound interest leave precipitate 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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