You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Suppose that $780 is deposited at the end of every year into an account paying interest of 6% per year. At the end of fifteen (1

nexus9112 [7]

Answer:

The account will be worth approximately $1,869

Explanation:

First of all, note that 6% of an amount = 6/100 × the amount = 0.06×amount.

Next let us calculate the amounts gotten for the first 4 years, and establish a pattern that will will us for the remaining 11 years.

1st year total= deposit + (0.06×deposit) = 780 + (0.06 × 780)

= 780 + 46.8 = $826.8

2nd year total = 826.8 + (0.06 × 826.8) = $876.408

3rd year total = 876.408 + (0.06 × 876.408) = $928.992

4th year total = 928.992 + (0.06 × 928.992) = $984.732

Now, if we observe the total amounts as the year progresses, we notice that the next year increase by a certain constant factor which is 1.06; this is determined by dividing the amount in a year by the amount in the previous year. It is shown below;

Year 2 ÷ Year 1 = 876.408 ÷ 826.8 = 1.06

year 3 ÷ year 2 = 928.992 ÷ 876.408 = 1.06

year 4 ÷ year 3 = 984.732 ÷ 928.992 = 1.06

Now, to determine the amount in the next year, we will multiply the amount in the previous year by 1.06 (common increasing factor)

Year 5 = year 4 × 1.06 = 984.732 × 1.06 = $1,046.816

year 6 = 1046.816 × 1.06 = $1,106.445

year 7 = 1106.445 × 1.06 = $1,172.832

year 8 = 1172.832 × 1.06 = $1,243.202

year 9 = 1243.202 × 1.06 = $1,317.794

year 10 = 1317.794 × 1.06 = $1,396.862

year 11 = 1396.862 × 1.06 = $1,480.674

year 12 = 1480.674 × 1.06 = $1,569.514

year 13 = 1569.514 × 1.06 = $1,663.684

year 14 = 1663.685 × 1.06 = $1,763.506

Year 15 = 1763.506 × 1.06 = $1,869.316 which is approximately $1,869

Alternatively, you can count how many 1.06s are there from year 5 to year 15, and the answer is 11. then you can raise 1.06 to a power of 11 as shown

$1.06^{11} = 1.8983$

then multiply the amount in year 4 by 1.8983

= 984.732 × 1.8983 = $1,869.316. = approx. $1869

This second method is easier, but I wanted you to see what is going on that is why i did the details in the first method

8 0

4 years ago

OpenReader is an Internet lending library in which people list and lend their own books and borrow books from other members. It

Elis [28]

Answer:

affiliate marketing

Explanation:

When someone searches for a company' s product he or she enjoys , promote and sells such product and earns bonus or profit, it is called affiliate marketing. It is a situation whereby one(affiliate) earns a comissiom by promoting another company' s product.

Affiliate marketing is mostly done on the internet . Affiliates identify themselves with a brand they enjoy and then refer people to patronize it. By so doing, they earn a commission on every sale they make on behalf of the company.

Although some people(affiliates) goes to the extent by having a blog to promote a company' s product, one can start by just advertising the product

which will eventually leads to sales and then earn comission.

3 0

4 years ago

Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sigh

butalik [34]

Answer:

This was an executory contract because neither party has fulfilled their contract obligations (consideration). In other words, the contract has not been fulfilled yet, and both parties are still responsible for performing their contract obligations.

Even after Jackson mistakenly painted the neighbor's deck, the contract remains as executory since neither party has performed their obligations.

5 0

3 years ago

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses

Airida [17]

Answer:

Explanation:

Hi, I have attached the full question as images below

Total Product Cost = ($70,000 + $35,500 + $43,700) ÷ 1,000 = $149.20

Total Period Cost = $30,600 + $29,300 = $59,900

Total Direct Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,900

Total Indirect Manufacturing Cost = $28,300

Total Manufacturing Cost = $70,000 + $35,500 + $43,700 = $149,200

Total Non Manufacturing Cost = $30,600 + $29,300 = $59,900

Total Conversion Cost = $35,500 + $43,700 = $79,200

Total Prime Cost = $70,000 + $35,500 = $105,500

Total Variable Manufacturing Cost = $70,000 + $35,500 + $15,400 = $120,000

Total Fixed Costs = $25,200 + $18,400 + $28,300 = $71,900

Variable Cost per unit = ($70,000 + $35,500 + $15,400 + $12,200 + $4,100) ÷ 1000 = $137.20

Incremental manufacturing cost = ($70,000 + $35,500 + $15,400) ÷ 1,000 = $120.90

5 0

3 years ago

Price _________________ is the selling of product to different buyers at different prices when the price differences are not jus

r-ruslan [8.4K]

Answer: Price discrimination.

Explanation:

Price discrimination occurs when a seller sales the same product for different prices to different buyers, in one case the price is less and in another case the price is higher when there is no need for a change in selling price. An example of price discrimination is when a car dealer sells a car at a cheaper price to his friend than he sold the same model of car to another buyer.

8 0

3 years ago