Business Analysis

Envision that you pay back served as trade manager of Media puting for all over 2 years. You have observe that for the last 12 months the billet has regularly had property assets of $20,000 or more at the empty of each month. You have lay out a 6-month credentials of desex that pays 6% increase monthly. To aim this pasture of engagement, you mustiness point a minimum of $2,000. You have also found a high following savings cover that pays 3% compounded daily. Based on the cash position of the line of credit at this time, assume that you decide to spend $4,000. 1.Assume that you get out beautify the full amount in a surety of deposit. a. What would be the futurity value of the CD at the end of the coronation term? $4000 X 1.005^6 = $4121.51 b. How much(prenominal) interest would the enthronisation watch for the period? $4121.51 4000 = $121.51 c. What would be the effectual enumerate of the poseiture? 1.005^12-1=.0617 or 6.17% 2.Assume that you decide to invest the $4,000 in the high-interest savings report. a. What future value would you expect to apprehend at the end of 6 months? $4000 X 1.0000833^180 = $4060.43 b. How much interest would the investment earn for the period? $4060.43 $4000 = $60.

43 c. What would be the telling rate of the investment? 1.00008333^360-1 = .0304 or 3.04 3.Write a recommendation to the partners justifying a short-term investment of business funds at this time, recommending paladin of these investments. Include your analysis from questions 1 and 2 in your recommendation. A CD posting has the terminal point of withdrawing money for six months, anyways savings accounts do non have the same limit. remembering in view the pecuniary benefit of CD account which is on the higher cheek and has a break dance effectual rate is also better than having a savings account, thence my recommendation is that the CD account is preferred.

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