Business Math __financial

Apr 4th, 2015
Business & Finance
Price: $5 USD

Question description

 A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions and requests assistance to help understand which option would be the best for his investment.

  • Option 1: 6% compounded interest quarterly for 5 years.
  • Option 2: 8% compounded interest annually for 5 years.
  • Option 3: 14.5% simple interest for 10 years.
Write a professional memo that covers the following information:
  1. Explain to the client the main differences between simple interest versus compound interest.
  2. Explain the results of the three different options by showing the client the step-by-step calculations.
  3. Explain which investment option is better for your client and why.

Tutor Answer

(Top Tutor) Daniel C.
School: University of Virginia

Studypool has helped 1,244,100 students

Review from our student for this Answer

Apr 4th, 2015
"This tutor is great!"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1824 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors