Business Analysis

Envision that you shed served as ph iodinness sop up manager of Media populace for over 2 years. You have find that for the last 12 months the business has regularly had coin assets of $20,000 or more at the displace of each month. You have fashion a 6-month award of deposit that pays 6% compounded monthly. To line up this esteem of invadeingness, you mustiness deck a minimum of $2,000. You have also found a high raise 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 much interest would the investment earn for the period? $4121.51 4000 = $121.51 c. What would be the usable arrange of the investment? 1.005^12-1=.0617 or 6.17% 2.Assume that y ou decide to invest the $4,000 in the high-interest savings line. 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 rough-and-ready 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 li mitation of withdrawing money for six months! , come on savings accounts do not have the same limit. memory in view the financial benefit of CD account which is on the higher side and has a better potent rate is also better than having a savings account, then 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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