Business, 30.08.2019 18:20 danteyoungblood7

Envision that you have served as business manager of media world for over 2 years.
you have noticed that for the last 12 months the business has regularly had cash assets of
$20,000 or more at the end of each month. you have found a 6-month certificate of
deposit that pays 6% compounded monthly. to obtain this rate of interest, you must
invest a minimum of $2,000. you have also found a high interest savings account 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 will invest the full amount in a certificate of deposit.
a. what would be the future value of the cd at the end of the investment term? (14
points)
b. how much interest would the investment eam for the period? (14 points)
c. what would be the effective rate of the investment? (14 points)
2. assume that you decide to invest the $4,000 in the high-interest savings account.
a. what future value would you expect to receive at the end of 6 months? (14 points)
b. how much interest would the investment earn for the period? (14 points)
c. what would be the effective rate of the investment? (14 points)
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. (16 points)

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Envision that you have served as business manager of media world for over 2 years.
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