All categories

3 years ago

Which type of account will typically have the highest interest rate?

Business

1 answer:

Firdavs [7]3 years ago

7 0

A certificate of deposit account will have the highest interest rate.

Further Explanation:

Interest rate:

The interest rate is the rate of interest earned on investment for a particular time period. Account refers to the investment of money made for a particular period. The investors invest in those account which provides the highest rate of return. If the investor gets a lower rate of return, he is not interested in investing the money.

Certificate of deposit:

A certificate of deposit is the type of account in which the investment has been made for a particular time period. It provides the highest interest rate. The investor invests in this type of account when he does not need the money immediately. He makes this type of investment for an extended period of time for different purposes. The investor makes this investment in case of long term funds needed for a particular purpose. For example, the marriage of the son or daughter, sometimes the investor may face the disease problem, purchase of land, purchase of the home, purchase of the car and many more purposes. As this investment provides a higher rate of interest, it will increase the amount of principal that the investor deposited.

Therefore, the certificate of deposit provides the highest interest rate.

Learn more:

1. Learn more about account

brainly.com/question/5057443

2. Learn more about the savings account

brainly.com/question/2652429

3. Learn more about bank account

brainly.com/question/3212764

Answer details:

Grade: Middle School

Subject: Business

Chapter: Money and banking

Keywords: certificate of deposit, higher interest rate, investment, investor, provides, deposited, particular time period.

You might be interested in

A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because a. in our m

Gelneren [198K]

Answer:

a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment.

Explanation:

Given that, government budget deficit is a term that describes a situation whereby the amount of government expenses is greater than the amount of government revenue over a given period of time. And at the same time, the loanable fund is the money available to find private investment

Hence, the right answer to the question is option a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment. Because, the insufficient revenue, will lead to little or no availability of resources to find private investment.

3 0

3 years ago

When an analyst is looking at a company for the first time, which of the following four activities does he do first?

TEA [102]

Answer:

a) defines the industries in which the company operates

Explanation:

In the case when the analyst begins to analyze the company so the first thing he see the industry how it operates whether it is understanble or not after that the growth should be potential or not

So here the option a is correct as it describe the industries in which the company would operates

So the same is to be considered for the first time

5 0

3 years ago

Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The co

zepelin [54]

Answer:

Spending variance= $43 favorable

Explanation:

Giving the following information:

Standard:

Fixed costs= $210

Variable cost per job= $86

Variable cost per meal= $15

The actual activity was 28 jobs and 217 meals. The actual cost for catering supplies in March was $5,830.

To calculate the spending variance, we need to use the following formula:

Spending variance= (actual costs - standard costs)

Standard costs= 210 + 28*86 + 15*217= 5,873

Spending variance= 5,830 - 5,873

Spending variance= $43 favorable

8 0

3 years ago

Magnolia, Inc., manufactures bedding sets. The budgeted production is for 17,700 comforters this year. Each comforter requires 7

sladkih [1.3K]

Answer:

Explanation:

Calculation of materials budget for 2012

Budgeted production units (A) 17,700

Material Required per unit (Yards) (B) 7

Total Material required (C) = A*B (Yards) 123,900

Add: Desired Ending material inventory 5,400

Less: Beginning Material inventory (4,870)

Material to be purchased (Yards) 124,430

Price Per yard $4 .70

Cost of Material to be purchased $584,821

4 0

3 years ago

Read 2 more answers

According to a summary of the payroll of Guthrie Co., $560,000 was subject to the 6.0% social security tax and the 1.5% Medicare

Sunny_sXe [5.5K]

Answer and Explanation:

a. The computation of an employer's payroll taxes is shown below:-

Employer's payroll taxes = Social Security tax payable + Medicare tax payable + State Unemployment tax payable + Federal Unemployment tax payable

= ($560,000 × 6%) + ($560,000 × 1.5%) + ($60,000 × 0.6%) + ($60,000 × 0.6%)

= $33,600 + $8,400 + $3,240 + $360

= $45,600

b. The Journal entry is shown below:-

Payroll tax expense $ Dr, $45,600 -

To Social Security tax payable $33,600

To Medicare tax payable $8,400

To State Unemployment tax payable $3,240

To Federal Unemployment tax payable $360

(Being accrual of payroll taxes is recorded)

5 0

3 years ago