Problem 5-02, New Savings Bank money to double
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
How long will it take your deposit to double if you deposit it with New Savings bank?
How long will it take your deposit to double if you deposit it with New Savings bank?
Determine the value of your grandfather’s investment today, and also determine the present value given what the investment had grown to.
Calculate the future value of a cash flow at various interest rates and time periods.
Calculate the future value of the bank account with simple interest and then determine the future value again for the bank account with compound interest.
Determine the number of years needed for some amount of money to double.
Determine each granddaughter’s entitlement at various interest rates.
Determine how long a certain amount of money will grow to a larger value at three different interest rates.
Compute the present value of the future payoff, determine whether the deal is good.
Determine the amount in your account after your wealthy uncle established a bank account for you when you were born.
Calculate the present value of the sales price, whether the investment is attractive to you, then evaluate the situation again given rent per year, and finally, whether or not the investment is attractive given the rent.