I f y o u p u t ₱ 5 0 ,0 0 0 . 0 0 i n a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t at t h e r a t e o f 4 % , c o m p o u n d e d a n n u a l l y , h o w m u c h w i l l y o u h a v e i n 5 y e a r s ? ( U s e t h e F V f o r m u l a . ) H o w m u c h i n t e r e s t w I l l y o u e a r n d u r i n g t h e 5 y e a r s ? I f y o u p u t ₱ 5 0 , 0 0 0 . 0 0 e a c h y e a r I n t o a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t a t t h e r a t e o f 4 % a y e a r , h o w m u c h w o u l d y o u h a v e a f t e r 5 y e a r s ? D e s c r I b e s o m e o f t h e s h o r t – t e r m i n v e s t m e n t v e h i c l e s t h a t c a n b e u s e d t o m a n a g e y o u r c a s h r e s o u r c e s . W h a t f a c t o r s w o u l d y o u f o c u s o n i f y o u w e r e c o n c e r n e d t h a t t h e C O V I D – 1 9 c r I s I s w i l l l e a d t o a s i g n i f i c a n t i n c r e a s e i n i n f l a t i o n ?
I f y o u p u t ₱ 5 0 ,0 0 0 . 0 0 i n a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t at t h e r a t e o f 4 % , c o m p o u n d e d a n n u a l l y , h o w m u c h w i l l y o u h a v e i n 5 y e a r s ? ( U s e t h e F V f o r m u l a . ) H o w m u c h i n t e r e s t w I l l y o u e a r n d u r i n g t h e 5 y e a r s ? I f y o u p u t ₱ 5 0 , 0 0 0 . 0 0 e a c h y e a r I n t o a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t a t t h e r a t e o f 4 % a y e a r , h o w m u c h w o u l d y o u h a v e a f t e r 5 y e a r s ? D e s c r I b e s o m e o f t h e s h o r t – t e r m i n v e s t m e n t v e h i c l e s t h a t c a n b e u s e d t o m a n a g e y o u r c a s h r e s o u r c e s . W h a t f a c t o r s w o u l d y o u f o c u s o n i f y o u w e r e c o n c e r n e d t h a t t h e C O V I D – 1 9 c r I s I s w i l l l e a d t o a s i g n i f i c a n t i n c r e a s e i n i n f l a t i o n ?
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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M A N A G I N G Y O U R C A S H A N D S A V I N G S
- I f y o u p u t ₱ 5 0 ,0 0 0 . 0 0 i n a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t at t h e r a t e o f 4 % , c o m p o u n d e d a n n u a l l y , h o w m u c h w i l l y o u h a v e i n 5 y e a r s ? ( U s e t h e F V f o r m u l a . ) H o w m u c h i n t e r e s t w I l l y o u e a r n d u r i n g t h e 5 y e a r s ? I f y o u p u t ₱ 5 0 , 0 0 0 . 0 0 e a c h y e a r I n t o a s a v i n g s a c c o u n t t h a t p a y s i n t e r e s t a t t h e r a t e o f 4 % a y e a r , h o w m u c h w o u l d y o u h a v e a f t e r 5 y e a r s ?
- D e s c r I b e s o m e o f t h e s h o r t – t e r m i n v e s t m e n t v e h i c l e s t h a t c a n b e u s e d t o m a n a g e y o u r c a s h r e s o u r c e s . W h a t f a c t o r s w o u l d y o u f o c u s o n i f y o u w e r e c o n c e r n e d t h a t t h e C O V I D – 1 9 c r I s I s w i l l l e a d t o a s i g n i f i c a n t i n c r e a s e i n i n f l a t i o n ?
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