Determining simple interest rate using banker-s rule


1) Starting with= $2,000 on March 3, you deposit $500 23 days from March 3, withdraw= $800 69 days from March 3, and deposit $600 121 days from March 2) If your final balance is= $2,458 150 days from March 3, determine the simple interest rate for your account using Banker’s rule.

3) You take= $5,000 loan with the interest rate of 10% and pay off constant principal portion of= $200 every year. Use the arithmetic progression.

Determine the interest payment in the 17th year. (a17)
What is the total amount of interests for 20 years? (S20)

Requirements
Min Pages: 1

2) Given the financial sophistication of capital budgeting techniques, you would think that application of different EVA and DCF approaches to long-term asset investments must guarantee success. Reality, of course, is that while most capital-intensive companies use NPV, IRR, MIRR, payback, modified payback, etc., many firms end up investing in money-losers which turn into massive write-downs. Current examples include Thyssen-Krupp (Google their steel plants in Alabama and Brazil), Boeing, solar panel plants, advanced technology battery factories, and so on

Question:

Cite some of the factors which can lead to management making main capital investment decisions which go wrong, how and why these outcomes can happen, and your thoughts as to how these investment process defects can be improved.

Requirements
Min Pages: 1

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Finance Basics: Determining simple interest rate using banker-s rule
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