MAC2602_ Assignment_ 2.
MAC2602 - Principles Of Strategy, Risk & Financial Management Techniques. MAC2602_ Assignment_ 2. ) Expressing each option as effective annual rate i. Fixed Dep acc Effective annual rate EAR = ((1 + i) ^n -1) = (1 + 0.02) 2 − 1 = (1.02) 2 − 1 = 1.04 – 1 = 0.04 = 4 % ii. Special Savings acc Effective annual rate EAR = ((1 + i) ^n -1) = (1 + 0.005) 12 − 1 = (1.005) 12 − 1 = 1.0617 – 1 = 0.0617 = 6.17 % From the different Effective interest rate, you can see the special savings account is more beneficial than the fixed deposit account
Geschreven voor
- Instelling
- University of South Africa
- Vak
- MAC2602 - Principles Of Strategy, Risk & Financial Management Techniques (MAC2602)
Documentinformatie
- Geüpload op
- 21 oktober 2021
- Aantal pagina's
- 14
- Geschreven in
- 2021/2022
- Type
- Tentamen (uitwerkingen)
- Bevat
- Vragen en antwoorden
Onderwerpen
-
mac2602
-
principles of strategy
-
strategy
-
mac2602 principles of strategy
-
risk amp financial management techniques
-
risk amp financial management techniques
-
risk amp financial management