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Sergeu [11.5K]
3 years ago
15

Andy deposited $3,000 this morning into an account that pays 5 percent interest, compounded annually. Barb also deposited $3,000

this morning into an account that pays 5 percent interest, compounded annually. Andy will withdraw his interest earnings and spend it as soon as possible. Barb will reinvest her interest earnings into her account. Given this, which one of the following statements is true?a. Barb will earn more interest the first year than Andy will.b. Andy will earn more interest in yera three than Barb will.c. Barb will earn interest on interest.d. After five years, Andy and Barb will both have earned the same amount of nterest.e. Andy will earn compound interest.
Business
1 answer:
dimulka [17.4K]3 years ago
5 0

Answer:

C) Barb will earn interest on interest.

Explanation:

Compound interest can be defined as more interest earned by previously earned interest, i.e. interest that earns more interest.

At the end of the first year both Andy and Barb will have $3,150 in their accounts (= $3,000 + 5%). Since Andy will withdraw his money at the end of year 1, only Barb will earn compound interest. At the end of second year Andy will have $3,150 while Barb will have $3,307.50 (= $3,150 + 5%).

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After choosing among several computer server systems, the Director of Information Systems feels very positive about the final ch
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confirmation bias

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3 0
3 years ago
Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the be
seropon [69]

Answer:

The company's turnover rounded to the nearest tenth: C) 9.5

Explanation:

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where:

Average Total Assets = (Beginning Assets + Ending Assets )/2 = (Assets at the beginning of year  +Assets at end of year )/2

In the House of Orange:

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7 0
3 years ago
In a market economy, why must the government play a primary role in dealing with pollution, vaccinations, and medical research
stealth61 [152]

Answer:

Explanation:

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4 0
3 years ago
You gave $770 to your cousin. As a token of gratitude, your cousin gave you $1,190 at the end of the year instead of $770. If yo
Kamila [148]

Answer:

annual rate of return  = 54.55%

Explanation:

given data

gave to your cousin present value = $770

cousin give you future value = $1190

solution

we get here annual rate of return that is express as

annual rate of return = \frac{future\ value}{present\ value} - 1    ...................1

put here value and we get

annual rate of return = \frac{1190}{770} - 1

solve it we get

annual rate of return  = 54.55%

7 0
3 years ago
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