Business Analysis

Envision that you boast served as ph mavenness track manager of Media populace for over 2 years. You have spy that for the last 12 months the business has regularly had cash in assets of $20,000 or more at the displace of each month. You have follow a 6-month award of deposit that pays 6% compounded monthly. To fuck off this esteem of invadeingness, you mustiness set up a minimum of $2,000. You have also found a high absorb savings posting that pays 3% compounded daily. Based on the cash position of the business at this time, assume that you decide to invest $4,000. 1.Assume that you entrust invest the full amount in a credential of deposit. a. What would be the future value of the CD at the end of the investment term? $4000 X 1.005^6 = $4121.51 b. How untold interest would the investment earn for the period? $4121.51 4000 = $121.51 c. What would be the utilizable arrange of the investment? 1.005^12-1=.0617 or 6.17% 2.As sume that you decide to invest the $4,000 in the high-interest savings number. a. What future value would you expect to receive at the end of 6 months? $4000 X 1.0000833^180 = $4060.43 b. How much interest would the investment earn for the period? $4060.43 $4000 = $60.

43 c. What would be the trenchant rate of the investment? 1.00008333^360-1 = .0304 or 3.04 3.Write a recommendation to the partners justifying a short-term investment of business funds at this time, recommending one of these investments. Include your analysis from questions 1 and 2 in your recommendation. A CD account has the limitation of withdrawing money for six! months, promote savings accounts do not have the same limit. store in view the financial benefit of CD account which is on the higher side and has a better in force(p) rate is also better than having a savings account, whence my recommendation is that the CD account is preferred.If you want to get a full essay, order it on our website: BestEssayCheap.com

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