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astraxan [27]
3 years ago
12

Blackshear Bank offers a 7% interest rate on loans, but only offers a 2% interest rate on deposits. Which of the following is th

e most likely reason for this spread in interest rates?
A. Blackshear Bank thinks that charging lower rates on deposits is the best way to attract customers.


B. Blackshear Bank is a for-profit business and therefore must charge more interest on loans to be able to pay interest on deposits and still make money.


C. Blackshear Bank just makes up interest rates based on weekly lottery numbers.


D. Blackshear Bank does not want its customers to be happy so they do not give them high interest on their deposits.
Business
1 answer:
yuradex [85]3 years ago
4 0
B makes the most sense. Banks are in it for themselves too, they're not giving you money for no reason.<span />
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Muhammad, a 21-year old computer engineer, is opening an individual retirement account (IRA) at a bank. His goal is to accumulat
zavuch27 [327]

Answer:

The first annual depoisit will be of 3,373.49 dollars

Explanation:

Given the formula for future growing annuity

we need to solve for the yearly payment:

grow rate:  0.04

annual effective rate: 8% compounding semiannually:

(/1+0.08/2)^2-1 = r_e\\

r= 0.0816

FV 2,500,000

n 46

<em><u>Formula for future value fo an ordinary annuity:</u></em>

C_0 \times \frac{(1+r)^n-(1+g)^n}{r-g}  = FV

C_0 \times \frac{(1+0.0816)^{46}-(1+0.04)^{46}}{0.0816-0.04}  = 2,500,000\\C_0 = $3,373.4855

The first annual depoisit will be of 3,373.49 dollars

3 0
3 years ago
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the f
IrinaK [193]

Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20

Explanation:

Using the Gordon growth model, you can calculate the expected dividend. The formula is:

Price = Expected dividend/ (expected return - expected growth)

Stock A expected dividend

25 = D/ (10% - 7%)

D = 25 * 3%

= $0.75

Stock B expected divided

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D = 40 * 3%

= $1.20

Option A, C and B are therefore wrong.

Option E is correct.

5 0
3 years ago
People often use products or services that are _________, to indicate who or where they are in the social hierarchy
Setler79 [48]

Answer:

Status Symbols

Explanation:

According to Oxford dictionary; a status symbol is "a possession that is taken to indicate a person's wealth or high social or professional status."

Hence status Symbols are external displays of the possessors' wealth and social status. These goods can not be possessed by people who do not belong to that social status or profession.

5 0
2 years ago
Using advertising to promote a company, instead of a product or service, is called what?
fiasKO [112]
C). Institutional Advertising. 
I think This is correct
7 0
2 years ago
Read 2 more answers
GDP is defined as the a. value of all goods and services produced within a country in a given period of time. b. value of all go
Anon25 [30]

Answer:

c. value of all final goods and services produced within a country in a given period of time. 

Explanation:

GDP is the value of all final goods and services produced within a country in a given period of time. 

GDP = Consumption + Investment + Government Spending + Net Exports

GNP is the value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.

5 0
3 years ago
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