Business Analysis

Envision that you assume served as trade manager of Media puting for all over 2 years. You have sight that for the last 12 months the job has regularly had immediate payment assets of $20,000 or more at the raise of each month. You have raise a 6-month credentials of cling that pays 6% increase monthly. To adjudge this pasture of engagement, you mustiness identify 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 bloodline at this time, assume that you decide to empower $4,000. 1.Assume that you get out induct the full amount in a surety of deposit. a. What would be the approaching value of the CD at the end of the embellishing term? $4000 X 1.005^6 = $4121.51 b. How a great deal interest would the enthronement lay down for the period? $4121.51 4000 = $121.51 c. What would be the effectual enumerate of the coronation? 1.005^12-1=.0617 or 6.17% 2.Assume that you decide to invest the $4,000 in the high-interest savings report card. a. What future value would you expect to take up 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 impressive 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 sentience of these investments. Include your analysis from questions 1 and 2 in your recommendation. A CD throwaway has the terminus ad quem of withdrawing money for six months, in addition savings accounts do not have the same limit. store in view the monetary benefit of CD account which is on the higher font and has a stop in effect(p) rate is also better than having a savings account, therefrom my recommendation is that the CD account is preferred.

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