The answer is savings account A.
Since savings account A compounds the interest quarterly it adds interest to the account every quarter. This makes it a more profitable account than one that compounds the interest semiannually. The reason is that the bank is adding interest more frequently, so you are earning interest on the interest that the bank has already paid you.
Well because a retrospective or ex post facto study offers a higher level of control than a correctional study!!
Based on the purchase price of the equipment and the increase in annual income, the accounting rate of return is 60%.
<h3 /><h3>What is the accounting rate of return?</h3>
This can be found by the formula:
= Average annual income - Average investment
The average investment is:
= Purchase price / 2
= 25,000 / 2
= $12,500
The accounting rate of return is:
= 7,500 / 12,500
= 60%
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<span>Relationship-specific adaptations are usually not required when the buying organization uses outsourcing.
False</span>
Answer:
a. The money multiplier is 5.
b. The Total money supply will increase by $250 million.
Explanation:
According to the given data we have the following:
Increase in amount of reserves by Fed = $100 million
Increase in money supply = $500 million
Therefore to Calculate the Money multiplier we have to use the following equation:
Increase in money supply = Increase in reserves×Money multiplier
So, Money multiplier = Increase in money supply/Increase in reserves
= $500 million/$100 million
= 5
a. The money multiplier is 5.
If there is anIncrease in amount of reserves by Fed = $50 million and the Money multiplier = 5
, therefore to Calculate increase in money supply we calculate the following:
Increase in money supply = Increase in amount of reserves by Fed * Money multiplier
= $50 million
= $250 million
b. The Total money supply will increase by $250 million.