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Financial Management Hw

29/03/2020 Client: rawan Deadline: 24 Hours

 1. First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually.




If you made a $60,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))




 Difference in accounts __$?




2. For each of the following, compute the future value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):




Present Value Years Interest Rate Future Value


   $1,950 10 14 % $___?___


   $8,152 8 8% $___?___


   $70,355 15 13% $___?___


   $177,796 6 5% $___?___


 

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