Answer:
1. Basic bank savings account.
2. Club account.
3. Checking account.
4. 529 plan.
5. CD
Explanation:
Savings can be defined as the amount of money left after removing expenses and other costs.
Investments are costs associated with purchasing of capital assets and investments of cash resources in other businesses.
1. Basic bank savings account: it's a deposit account that offers an account holder a low interest rate, checkbooks aren't issued, and the holder is posed with few restrictions on access to his or her money.
2. Club account: it's an account used to save money for a specific purpose or special reason such as vacation, tourism, college, etc.
3. Checking account: it's a type of deposit account that is designed to make it convenient for the holder to pay bills easily.
4. 529 plan: a 529 plan is a tax-free savings account which avails an individual or account holder (sponsor) to make payment in advance with respect to educational expenses that would be incurred by a student (beneficiary) in the future. This plan is mainly sponsored by state agencies or the state itself and it is authorized by Section 529 of the Internal Revenue Code and mainly sponsored by the states to encourage savings for future educational costs.
5. Certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.
Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.
Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.
Answer: $8,392.56
The total amount Irini owed Olena is $8,392.56
Explanation:
By using compound interest to solve the question
A=p (1+ r/n) *nt (raised to power nt)
A= future amount to be returned (unknown)
P= principal (present value) =$8,000
r = 4.8% = 0.048
t = 1year
n = 12 payments in a year ( the rate compounded monthly)
A= 8000 {1 + (0.048/12)} * 12
A = 8000 ( 1+0.004) *12
A = 8000 (1.004) *12
A = $8,392.56 as the amount to owed.
Nt: * 12 means raised to the power of 12.
Answer:
You may reach your long-term goals quicker by putting your cash into a savings account or certificate of deposit with a high interest rate, or by investing, especially if you don’t plan to use this money for at least five years — say you’re starting a college fund for your newborn. That way you’ll allow time to build up a positive return.
Explanation:
<span>In order to compete effectively, many companies have taken proactive steps to hire and nurture people from a broad range of backgrounds. This is an example of social business environment. </span>
Answer:
Premium on the issue is $6,931
Bond interest expense is $10,343.79
Bond carrying value is $114,474.79
Explanation:
The premium on the day of issue is the bonds' cash proceeds less the face value.
Cash proceeds is $114,931
Face value is $108,000
Premium =$114,931-$108,000=$6,931
Interest expense at December year one is the cash proceeds from the bondholders multiplied by the bond yield to maturity of 9% as shown below
interest expense=$114,931*9%=$10,343.79
The bond carrying value at the end of the year is the cash proceeds plus the interest expense less coupon payment as below:
Carrying value=$114,931+$10,343.79-($108,000*10%)=$114,474.79