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Lana71 [14]
1 year ago
5

you invest $15,000 at an annual rate of 8.25or one year. what is the difference in interest earned if your investment is compoun

ded on a monthly basis instead of an annual basis?
Business
1 answer:
harina [27]1 year ago
8 0

The difference in interest earned if your investment is compounded on a monthly basis instead of an annual basis is $1185

"8.25% interest" denotes an interest rate of 8.25% yearly, compounded. "8.25% interest compounded monthly" refers to the annual interest rate, which is 8.25% and is compounded every month. The interest rate is, therefore (8.25%) / (12) = 0.6875% monthly. It is clear what is meant by "0.6875% interest per month compounded monthly." Problems must be resolved in terms of the compounding period rather than years when the compounding period is not annual.

P = 15000, r = 0.0825 (8.25%), n = 12 , and t = 1 (given)

Using the formula for monthly compound interest,

CI = P (1 +\frac{r}{n})^{nt}  - P

CI = 15000 [1 + (0.0825 / 12)] ¹² - 15000

CI = (15000 * 1.086) - 15000

CI = 16290 - 15000

CI = 1290

Therefore, Compound Interest when compounded on monthly basis will be $1290.

Annual Compound Interest:

CI = P (1 +\frac{r}{n})^{nt}  - P

CI =  15000 [1 + (0.0825 / 12)] ¹ - 15000

CI = (15000 * 1.007) - 15000

CI = 15105 - 15000

CI = $105

Therefore, Compound Interest when compounded annually will be $105.

The difference in interest earned  if the investment is compounded monthly instead of annual basis will be

Difference = $1290 - $105 = $1185

To know more about Compound Interest, refer to this link:

brainly.com/question/20406888

#SPJ4

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Ethics can be defined as a set of rules and regulation that govern the moral behavior of someone. Ethical standards vary from one region to another since they are majorly cultural, for example; a behavior in the United States can be considered as appropriate while the same behavior in a different place can be inappropriate. Ethical standards are either right or wrong, and the actions are judged on these terms. Ethics don't measure whether a actions are loyal or disloyal, thus the statement is false.

3.

The primary accounting standard setting body in the United States is Financial Accounting Standards Board (FASB). This body is charged with regulating and setting the best standard of accounting practice. The FASB usually constitutes a board whose officials are rigorously assessed. The board members have to be professionals in the field of accounting.  Securities and Exchange Commission on the other hand is an independent federal agency with the authority to enforce federal security laws. Thus the statement above is false.

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What are forms of office correspondences?​
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Answer:

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Correspondence simply means letters sent or received. Another word for “Correspondence” is “Mail”. In our offices and Businesses, We receive letters, parcels, telegrams, internal memos, fax, e-mail, text messages or SMS (Short Message Service) and other documents which we all know as mail or correspondence.

CORRESPONDENCE RECORDS

Correspondence records are those documents used to keep track of correspondences in an organization. They show evidence of important transactions, letters, reasons for writing and those involved, dates, addresses, e-mails and other important messages.

TYPES OF CORRESPONDENCE

There are three main types of correspondence, they are:

In-coming mails

Out-going mails

Postage book.

1. In-Coming Mails: These are letters that comes into an organization. In-coming correspondence will reach the records offices in a number of different ways. Some will come through the regular post office or other courier services, like, DHL,UPS etc. Other in-coming mails could come via e-mail, or with the growth in technology, through text messaging:- Short Message Service (SMS) or Multimedia Messaging Services (MMS).

Examples of In-Coming Mails are: Letters

Parcels

Computer printouts e.g. e-mail or other data

Telegrams

Internal memos

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METHODS OF MAIL DELIVERY

Mails or letters can be delivered either by post or by hand to the recipients in two ways:

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b. Delivery by Hand: The mails that can be delivered by hand include letters, circulars, memos, handbills, notices of different sizes etc. The mails must be handled with care, so that the recipient will receive it without complaint and in time too. All mails are sorted out first in the mail room before being distributed to the appropriate persons or organization(S).

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USES OF CORRESPONDENCE RECORDS

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CLASSIFICATION OF CORRESPONDENCE RECORDS

Inward Book or Inward Register

Outward Book or Outward Register

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