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MissTica
2 years ago
11

Nirav just opened a savings account paying 2 percent interest, compounded annually. After four years, the savings account will b

e worth $5,000. Assume there are no additional deposits or withdrawals. Given this information, Nirav:
Business
1 answer:
nlexa [21]2 years ago
3 0

Nirav recently opened a savings account offering 2% annual compound interest, this means that Nirav will earn the same amount of interest each year for four years.

<h3>What is a saving account?</h3>

An account at a retail bank is formally called as a savings account. This is a type of account that person granted a person that his money is safe in a particular bank. Refer to the image below for the complete question.

The given case tells about that <u>what would be the impact</u> of savings account offering 2% annual compound interest on Nirav, then he will earn the same amount of interest compounded each year for four years.

Learn more about the interest, refer to:

brainly.com/question/1040694

#SPJ1

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Suppose the rate of return on a 10-year T-bond is 6.90%, the expected average rate of inflation over the next 10 years is 2.0%,
yuradex [85]

Answer:

correct option is b. 4.00%

Explanation:

given data

10 Year T-bond yield  = 6.90 %

Inflation   = 2 %

MRP of 10 years T-bond  = 0.90

to find out

Treasury Inflation Protected Securities  (TIPS)

solution

we get Treasury Inflation Protected Securities yield is express as

Treasury Inflation Protected Securities yield = T bond yield -  Inflation- MRP   ................1

so

Treasury Inflation Protected Securities yield = 6.90 - 2 - 0.90

Treasury Inflation Protected Securities yield  = 4 %

so correct option is b. 4.00%

6 0
3 years ago
What term is used for bonds that have specific assets pledged as collateral?
Stells [14]

Answer: Collateral bonds

       

Explanation: In simple words, collateral or secured bonds refers to the the bonds that have are backed by the security of some financial asset such as any stock or some other bonds which are referred to as collateral.

These collateral  assets are held and deposited by the trustee at the discretion of the holders. Generally, the interest rate on these bonds is Lower than the interest rates of normal bonds without collateral as they have an additional security.

In case the company fails to pay to the bonds holders they can pressure the company to sell the asset and make payments to the bondholders. These bonds are issued by strong organisations to some specific individuals.

7 0
3 years ago
A company incurred the following manufacturing costs this period: direct labor, $468,000; direct materials, $390,000; and factor
viktelen [127]

Answer:

25%

Explanation:

Given that,

Direct labor = $468,000  

Direct materials = $390,000

Factory overhead = $117,000

The overhead rate as a percent of direct labor cost is determined by dividing the factory overhead by the direct labor cost.

Overhead rate:

= (Factory overhead ÷ Direct labor cost) × 100

= ($117,000 ÷ $468,000) × 100

= 0.25 × 100

= 25%

8 0
4 years ago
According to the assumptions of CVP, ______ will not change as the volume of a product increases or decreases. total variable co
fgiga [73]

Answer:

Fixed costs, sales price, and variable cost per unit

Explanation:

Cost-volume-profit (CVP) analysis is a cost accounting technique that examines how operating profit is affected by varying levels of costs and volume. Another name for CVP is break-even analysis because for different sales volumes and cost structures, it provides the break-even point (BEP) for different sales volumes and cost structures. BEP can assist managers during the short-term economic decision making.

Some of the assumptions of CVP are that fixed costs, sales price, and variable cost per unit will not change even when the volume of a product changes. The change in the volume of a product can either be an increase or a decrease.

Therefore, according to the assumptions of CVP, fixed costs, sales price, and variable cost per unit will not change as the volume of a product increases or decreases.

I wish you the best.

5 0
3 years ago
What is the overall change in cash resulting from: $248 increase in inventories, $186 increase in accounts payable, $139 decreas
solniwko [45]

Answer:

An increase of $54

Explanation:

Any increase in current assets will decrease in cash. On the other hand, any decrease in current assets will increase cash balance.

Inversely, any increase in current liabilities will increase cash and any decrease in current liabilities will decrease cash balance of the period.

Increase in inventories ($248)

Increase in accounts payable $186

Decrease in accounts receivable $139

Decrease in other current asset $61

Decrease in other current liabilities ($84)

Total change $54 - an increase in cash

3 0
3 years ago
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