SITUATION 3:Alice wants to be a 'wise' money saver. She hasP100,000 and is willing to put it in the bank.She found two banks that accept saving basedon a simple interest. One bank offers 15%simple interest and another offers 10% simpleinterest, and she invested in both banks. Aftera year, she withdraws all interest and capitaland finds out she has P112 000.ofat24. How much money did she put on the bankthat has the 10% interest?b. P30,000d. P70,000a. P60,000c. P80,0004125. How much money did she put on the otherbank?neb. P20,000d. B40,000a. P4,000enc. $7,00026.1f she got a total of P113 000 after a yearwith her original money, how much money wasshe able to put up on the bank that rewards15% simple interest?0o 00c. P80,000d. P70,000attle

Simple interest is interest without compounding that is there is no interest on interest and there…

Alice wants to be a 'wise' money saver. She has P100,000 and is willing to put it in the bank. she found two banks that accept saving based on a simple interest. One bank offers 15% simple interest and another offers 10% simple interest and she invested in hoth banks After

Alice wants to be a 'wise' money saver. She has P100,000 and is willing to put it in the bank. she found two banks that accept saving based on a simple interest. One bank offers 15% simple interest and another offers 10% simple interest and she invested in hoth banks After

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Five years ago, you saved $5,000 in bank A that pays a compounding interest rate. You also saved $5,000 in bank B that pays a simple interest rate. Both accounts have $8,000 now. How much will you have in the two accounts at the end of year 5? The account balance in bank A will be $11,000. The account balance in bank B will be $11,000. The account balance in bank A will be $12,800. The account balance in bank B will be $11,000. The account balance in bank A will be $11,000. The account balance in bank B will be $12,800.
W3.Part 2 – You have $10,000 to invest. Your Grandmother, who doesn’t trust banks, has advised you to put the money under your mattress to save for the future. Conversely, your Mother suggests you open a savings account at a bank. In your town, the banks are currently offering 3% interest. One bank (Bank A) compounds the interests each quarter (March 31, June 30, September 30, and December 31). The other bank (Bank B) compounds the interest on an annual basis (December 31). Assuming you would save your money for the next 10 years, what would your balance be in Bank A and in Bank B? Please describe your calculations within your response.
Imagine that you have worked every summer for the last four years in order to save money to buy a car. You have $23,000 deposited in a savings account at your local bank. One day, you turn on the news and discover that the stock market is crashing and people are rushing to banks to withdraw all of their money. Your best course of action is to:
Shashin has 4P dollars that he wants to invest in a savings account earning an interest rate of r at the end of every two weeks. Nimish suggests an alternative: that Shashin instead open four different savings accounts with the bank (all earning the same rate, r at the end of every two weeks), and invest P dollars into each of them. This way Shashin can take advantage of the great interest rate even more! Help Shashin determine which strategy to adopt.
Suppose Clinton decides to use $9,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Arcadia, a biomedical research firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Arcadia stock would give Clinton the firm. In the event that Arcadia runs into financial difficulty, will be paid first. Suppose Clinton chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Arcadia stock. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clinton's shares to decline. The price of his shares will rise if Arcadia issues additional shares of stock. Alternatively, Clinton could undertake their financial investment by purchasing bonds…
Bha

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