All categories

3 years ago

Account A pays simple interest.

Business

1 answer:

maw [93]3 years ago

3 0

Answer:

Explanation:

Interest Factors

<u>Periods 6% 7% 8% 9% 10% 11 %</u>

1 1.0600 1.0700 1.0800 1.0900 1.1000 1.1100

2 1.1236 1.1449 1.1664 1.1881 1.2100 1.2321

3 1.1910 1.2250 1.2597 1.2950 1.3310 1.3676

4 1.2625 1.3108 1.3605 1.4116 1.4641 1.5181

Future value paying simple interest = Principal + [( principal * interest) * investment period]

Future value paying simple interest = $2,000 + [ ( $2,000 * 9%) * 3]

Future value paying simple interest = $2,000 + 540

Future value paying simple interest = $2,540

Future value paying compound interest = Present value * ( 1 + interest)n

Future value paying compound interest = $2,000 * ( 1 + 0.09)3

Future value paying compound interest = $2,000 * 1.295029

Future value paying compound interest = $2,590.058

Difference = $2,590.058 - 2,540

Difference = $50.058

You might be interested in

Q 4.13: salaries and wages expense should have been accrued on december 31st, but the entry was not made. the result of this ove

Shkiper50 [21]

The answer to the given situation is "the result of this oversight is that the liabilities are understated".
We can define understated as if someone say to you that your account is understated, it means that either the amount is incorrect or the amount is too small or it is less than the actual or true amount. In the given case the entry was not made due the understatement of liabilities.

6 0

3 years ago

From 2001 to 2004, the U.S. government went from a budget surplus to a budget deficit. According to the open-economy macroeconom

notsponge [240]

Answer: Option (a) is correct.

Explanation:

Correct Option: The supply of loanable funds but not the supply of dollars in the market for foreign-currency exchange.

If the budget deficit increases, then U.S residents will want to purchase fewer foreign assets and foreign residents wants to buy more of U.S assets.

The budget deficit in the economy has to be financed either by borrowing or by increasing taxes. This budget deficit occurred because of the tax cuts and higher government spending.

If a country running a budget deficit, which lead to reduction in national saving. We all know that interest rate is determined in the loan market, where savers supply the loans to the private borrowers.

So, if there is a fall in the national saving, this will reduced the supply of loans from savers, which raises the interest rate in an economy.

This will attract the foreign flow of capital. This means that demand for domestic assets increases because of the higher interest rate.

Now, if foreign residents want to take an advantage of higher interest rate then they first have to acquire domestic currency.

Therefore, higher interest increases the demand for domestic currency in a market of foreign exchange.

4 0

3 years ago

Which of the following is NOT a differentiator between manufacturing and service operations? A. Transportation B. Customer conta

KengaRu [80]

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

5 0

3 years ago

The market for tomatoes is in equilibrium at the price of $10, and quantity of 50 tomatoes. If consumer surplus is $400 and tota

Darya [45]

Answer:

$250

This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.

Explanation:

Data provided in the question:

Price of tomato = $10

Equilibrium quantity = 50 tomatoes

Consumer surplus = $400

Total surplus = $650

Now,

The producer surplus = Total surplus - Consumer surplus

= $650 - $400

= $250

This because out of the total surplus, the surplus left after being received by the consumer goes to the producer.

3 0

3 years ago

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. F

TiliK225 [7]

Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.

4 0

3 years ago