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aleksley [76]
2 years ago
10

Arn.hawkeslearning.com/portal/test/testtaketesti 00:28:59 question 23 of 29 step 1 of 2 mary ann has recently inherited $5100. w

hich she wants to deposit into an ira account she has determined that her two best bets are an account that compounds emi-annually at an annual rate of 5.5% (account 1) and an account that compounds daily at'an annual rate of 3.4% (account 2). step 1 of 2: which account would pay mary ann more interest? answer 2 points keypad keyboard shortcuts account 1 account 2 prev d
Business
1 answer:
Irina18 [472]2 years ago
3 0

Mary Ann will prefer Account 1

The use of "Compounding interest rate," which involves adding interest to the deposit's principal amount, is the main topic of discussion here.

Mary Ann's balance from account 2 over 3.7 years is $6,261.37

The below calculation is to derive maturity and value when an annual rate of 5.5% is applied.

Principal = $5,100

Annual rate = 5.5% semi-annually for 1 years

A = P(1+r/m)^n*t where n=1, t=2

A = 5,400*(1 + 0.031/2)^1*2

A = 5,400*(1.0155)^2

A = 5,400*1.03124025

A = 5568.69735

A = $5,568.70.

In conclusion, the accrued value she will get years one year for this account is $5,568.70,

When the amount compounds continuously at a rate of 3.4% per year, the maturity value is determined by the calculation below.

Principal = $5,400

Annual rate = 3.4% continuously

A = P.e^rt where n=1

A = 5,400 * e^(0.04*1)

A = 5,400 * 1.04081077419

A = 5620.378180626

A = $5,620.39.

In conclusion, the accrued value she will greater one year for this account is $5,620.39.

Referring to how much would Mary Ann's balance be from Account 2 over 3.7 years. It is calculated as follows:

Annual rate = 3.4% continuously

A = P.e^rt where n=3.7

A = 5,400 * e^(0.04*3.7)

A = 5,400 * e^0.148

A = 5,400 * 1.15951289636

A = 6261.369640344

A = $6,261.37

Therefore, the accrued value she will get after 3.7 years for this account is $6,261.37

Learn more about the Annual rate here

brainly.com/question/14170671

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Suppose the price of rice increases and you view rice as an inferior good. The substitution effect results in a ________ change
notka56 [123]

Answer:

B. negative, positive

Explanation:

Substitution effect : Price rise of a good makes it relatively expensive, decreases its demand. Price fall of a good makes it relatively cheap, increases its demand.

So: Substitution Effect is always negative as per above explanation.

Income Effect : Price rise of a good decreases real income/ real purchasing power of consumer & reduces demand of all goods. Price fall increases real purchasing power & increases demand of all goods.

Income effect is positive in case of Normal Goods, normal good demand is positively related to income. The effect is negative in case of inferior goods, inferior good demand is negatively related to income.

Hence: Price rise of rice - Substitution effect results in negative change  in rice consumption.  {∵substitution effect always negative}

Income Effect leads to positive change in rice consumption {∵price rise reduces real income & income effect is negative for inferior goods}

5 0
3 years ago
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a local pizza parlor is selling two different shapes of cheese pizza for the same price. You can get two small square pizza that
Mamont248 [21]

Answer:

The large round pizza with a 14 inch diameter

Explanation:

We can see this as a simple geometry problem. Which is the largest area? Two squares of 8 inches side or a 14 inch diameter circle? Let's see. The area of the square is side * side, in this case 8 * 8, so we have 64 squared inches  in each of the two pizzas. That makes a total of 128 squared inches (64 + 64) for the two small squared pizzas. Now to calculate the circle, we must do the following formula: \pi *r^{2} where r is the radium of the circle. The radium is half of the diameter, in this case 14/2=7. So the formula is 7^2, that is to say 49, multiplied by pi. This gives us approximately 153.93 squared inches, which is bigger than 128. A large round pizza with 14 inches of diameter gives more pizza.

We can also think that most people don't like the crust of the pizza. Two pizzas have more crust than one. So one pizza, besides being bigger, can save you to eat the crust and more cheese and sauce.

5 0
3 years ago
According to the Uniform Commercial Code's rule, when forms are not exchanged, _____. acceptance cannot materially vary from the
Likurg_2 [28]

Answer:

According to the Uniform Commercial Code's rule, when forms are not exchanged, acceptance cannot materially vary from the offer

Explanation:

Then UCC code was established because it was becoming increasingly difficult for companies to transact business across state lines given the various state laws.

The Uniform Commercial Code (UCC) is important since it helps companies in different states to transact with each other by providing a standard legal and contractual framework.

According to the Uniform Commercial Code's rule,  

  • Firm offers (offers to buy or sell goods and promising to keep the offer open for a period of time) are valid without only when it is signed by the offeror.
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Therefore, when forms are not exchanged, acceptance cannot materially vary from the offer.

6 0
2 years ago
Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporati
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Answer:

$ 48,000

$3,200

Explanation:

Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.

Reason -

Business income = 120,000×40%

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⇒Business income = $48,000

Tax-exempt = 8,000×40%

                   = 8,000.\frac{40}{100}

                   = $3,200

⇒Tax-exempt = $3,200

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