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Solnce55 [7]
3 years ago
7

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

Business
1 answer:
Ne4ueva [31]3 years ago
3 0
In general, it is true that if the frequency is higher, then you make more money. For example, suppose you have a capital 1$ and the interest rate can be either 50% compunded annually or 25% compounded semiannually (same total interest in a year, different compounding rate). In the first case you get 1.5$ back at the end of the year, while in the second case after 1 semester you have 1.25$. After 2 semesters, you have 1.56$. You cannot make infinite money this way though; you can at most gain a factor of 2.7 by reducing the intervals of compounding.
The correct answer is the highest frequency, namely when the interest is compounded as frequently as possible (as long as the total interest rate is the same).
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Hey there!!

The correct answer is Option A. an Increase in supply

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3 years ago
Which are factors that both budget constraint diagrams and production possibilities frontier diagrams highlight
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7 0
2 years ago
Sillytime Park competes with Splash World by providing a variety of rides. Sillytime sells tickets at $ 60 per person as aâ one-
horsena [70]

Answer:

BEP 378,000

Explanation:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

60 - 24 = 36 contribution margin

every units contribution $36 dollars

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each dollar of sale generate 60 cents of contribution

226,800 fixed cost / 0.6 CMR = 378,000 BEP  in dollars

3 0
3 years ago
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b.

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8 0
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C. Ignoring shareholders' rights

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