FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 2

5.First City Bank pays 7 percent simple interest on its savings account
balances, whereas Second City Bank pays 7 percent interest
compounded annually.

If you made a $59,000 deposit in each bank, how much more money
would you earn from your Second City Bank account at the end of 9
years? (Do not round intermediate calculations and round your answer
to 2 decimal places, e.g., 32.16.)

12299.09

6.What is the future value of $3,136 invested for 12 years at 6.50
percent compounded annually?

7.What is the present value of $12,750 to be received 3 years from
today if the discount rate is 5.50 percent?
use this website:
http://www.moneychimp.com/calculator/present_value_calculator.ht
m

8. Six months ago, you purchased 1,200 shares of ABC stock for
$21.20 a share and have received total dividend payments of $.60 a
share. Today, you sold all of your shares for $22.20 a share. What is
your total dollar return on this investment?

9.Six months ago, you purchased 100 shares of stock in ABC Co. at a
price of $43.89 a share. ABC stock pays a quarterly dividend of $.10