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expeople1 [14]
4 years ago
9

Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000

this morning at 5 percent interest, compounded annually. Andy will withdraw his interest earnings and spend it as soon as possible. Barb will reinvest her interest earnings into her account. Given this, which one of the following statements is true?Select one: a. Barb will earn compound interest b. Barb will earn more interest the first year than Andy will c. Barb will earn interest on interest d. After five years, Andy will have more money in his account than Barb e. Andy will earn more interest the first year than Barb will
Business
1 answer:
fiasKO [112]4 years ago
3 0

Answer:

Barb will earn interest on interest yes because she don't retire the interest

Explanation:

a. Barb will earn compound interest both will aearn compound interest.

b. Barb will earn more interest the first year than Andy both are compound annualy. The first year both will earn the same amount of interest.

c. Barb will earn interest on interest yes because she don't retire the interest and reinvest it.

Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan

d. After five years, Andy will have more money in his account than Barb. No because he spend his interest.

e. Andy will earn more interest the first year than Barb both are compound annualy. The first year both will earn the same amount of interest.

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3 years ago
The present value of a cash flow will _________ be less than the future dollar amount of the cash flow
nata0808 [166]

The present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.

<h3>What is the present value?</h3>

The present value is the value of future cash flows discounted by the discount rate to today's value.

Discounting converts a future value to an equivalent value received today. Discounting measures the relative value of a series of future cash flows to a present value.

For example, if $500 is to be received in ten years, with a discount rate of 5%, its present value will be $307 ($500 x 0.614).

Thus, the present value of a cash flow will always be <u>less</u> than the future dollar amount of the cash flow.

Learn more about the present and future values at brainly.com/question/15904086

7 0
3 years ago
In the context of market segmentation, unlike global citizens, global dreamers:
Zarrin [17]

Answer:

a. May not be able to afford, but nevertheless admire, global brands.

Explanation:

Let's analize all the statements for separate.

A.Global dreamers favour the global brands. Unlike global citizens can't afford them, but still admire them.

B. Refers to Antiglobals

C. Refers to global agnostics

D. Is against some global brands, can be seen as soft global agnostic.

5 0
3 years ago
A manufacturer of hospital supplies has a uniform annual demand for 320,000 boxes of bandages. It costs ​$10 to store one box of
strojnjashka [21]

Answer:

Number of times for production  = 10 times

Explanation:

<em>Economic batch quantity (EBQ) i</em><em>s also known as economic production run, It is the optimum production run that a manufacturer should operate to minize set up cost and carrying cost. </em>

Carrying cost is the cost of keeping inventory while set up cost is cost of getting machines ready for production

The number of times the company should produce =

Annual demand / the economic production run(EBQ)

It is calculated as follows:

Economic batch quantity =√2× Co× D / Ch

Where ,

D - annual demand -320,000,

Ch -holding cost per unit per annum - $10

Co- set up cost - $160 ,

= √ (2 × 160× 320000/10)

= 3200

Number of times for production

= 320,000/3,200

= 10 times

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3 years ago
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Svetach [21]

Answer:

B

Explanation:

Budgeting does not necessarily be prepared by the top management. But it is important they will know the budget in order for them to properly make wise decision for the betterment of the company that plays a vital role in attaining their organizational goal.

7 0
4 years ago
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