5.3 Kelly Martin has $10,000 that she can deposit into a savings account for five years. Bank A compounds interest annually, Bank B twice a year, and Bank C quarterly. Each bank has a stated interest rate of 4 percent. What amount would Kelly have at the end of the fifth year if she left all the interest paid on the deposit in each bank? Solution: Present value = PV = $10,000 Number of years = n = 5 Interest rate = i = 4% Compound period m: A = 1 B = 2 C = 4 Amount at the end of 5 years
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1. Explain financial intermediation and summarize the benefits of financial intermediation There are two main roles in the financial intermediation process: borrowers, also known as spenders and savers, also called lenders. Let's look at borrowers first. Borrowers need money for various reasons: to purchase a home, start a business, pay for business expenses and fund programs. They need money to spend. Borrowers include individuals, companies and the government. All three have a need to borrow
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Corporate Bonds: Background Bonds may be registered (bondholder’s name is kept in a file) or held as bearer bonds (anyone possessing the bond may sell it or collect interest payments and face value). Each bond round of sales is called a “series.” So the company’s Series M bond issue might have occurred in 2003; and its Series N issue might have taken place in 2005. It might be that the total amount the company raised in its Series M equaled $600 million; and the amount raised (borrowed) in its
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31 courses – 9 Fundamental Courses – 2 Language Course = 20 Courses Accounting and Mgmt Control | Public and Private Policy | Economics | CPTC 31080: Pré-MSc Comptabilité (DONE) | DEVC 31110: Acteurs Publics | ECOA 31123: Macroeconomic Theory and Development | CPTC 31081: Pre-MSc Accounting (DONE) | DEVC 31112: Les enjeux de l’economie sociale | ECOA 31129: Asian Economies | CPTC 31124: Informations Comptables et Financières (CORE) | DEVC 31114: Economie urbaine et régionale | ECOA 31157:
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Plain Sterling Silver Rings Sterling Silver is a very popular silver alloy. Sterling silver is nothing but pure silver alloyed with harder metals so as to increase its strength and durability. This is done because pure silver, though a precious and highly reflective metal with bright white shine, is prone to scratching as it is soft and very malleable. Sterling silver usually contains about ninety two and half percent of silver and is combined with other metals. The other metal usually combined
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I have a bright vision to invest in the stock markets and to not own a bank, but have a clinic. My dream is to become a medical doctor, but would also like to invest wisely. It is true that there was a market crash a couple of times in recent US History but it builds back up and it remains stable. I find it insane how it takes a lot to make so much profit. It is risky to invest large amounts, but it seems to be worth it if it is done responsibly. Overall in relationship to the movie, I felt that
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I took part in the first option and invested $10,000 into four companies, Chipotle, Disney, Ford, and Macy’s, and tracked my gains and losses over a ten-day period. Through this activity, I learned how quickly the stock market prices can change from day to day. I started this activity on April 6th, and invested into four different companies. I invested almost half of my budget into one of my favorite restaurants, Chipotle. On the 6th, a share of Chipotle was going for $450.29. I purchased
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The committee chair highlighted the fact that this meeting was a follow-up from the previous meeting and that the purpose of such, was to approve new fund options for presentation to the FARM committee. Stephen Peirce, Mercer representation, suggested that the committee review the updated Investment Options documentation dated May 10, 2017, which highlighted a few changes since the March 23, 2017 version. Stephen first outlined the options in relation to tier one. The tier one option, as suggested
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Countrywide Financial was a major player in the subprime loan crisis that contributed to the 2008 financial crisis (Ferrell, Fraedrich, & Ferrell, 2015). Despite being such a major contributor to the financial crisis, there was little accountability for Countrywide, its executives, or the company that acquired Countrywide after its downfall. Federal prosecutors with the U.S. Department of Justice have recently decided to not continue pursuing charges against Bank of America, the company who acquired
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Paul High did not keep true to his obligation with William and Marilyn McGowen. High granted the McGowen's a security interest for the purchase price. The security interest was for the personal property and livestock owned by High. A couple of months later, High signed a promissory note with the bank to borrow $86,695; the bank granted the security interest based on all of his farm products although it was just limited to those things. As a result the bank filed a financing statement with the county
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