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hjlf
3 years ago
10

Jeff deposits $3,000 into an account which pays 5 percent interest, compounded annually. At the same time, Kurt deposits $3,000

into an account paying 3 percent interest, compounded annually. At the end of three years:________ 1) Kurt will earn exactly twice the amount of interest that Jeff earns. 2) Kurt will have a larger account value than Jeff will. 3) Kurt will have a smaller account value Jeff will. 4) Jeff will have more money saved than Kurt. 5) Both Jeff and Kurt will have accounts of equal value
Business
1 answer:
VashaNatasha [74]3 years ago
8 0

Answer:

Kurt will have a smaller account value than Jeff will

Explanation:

The formula for calculating future value = A (B / r)

B = [(1 + r)^n] - 1

Jeff : $3000 x [(1.05^3 - 1 ) / 0.05] = $9457.50

Kurt :$3000 x [(1.03^3 - 1 ) / 0.03] = $9272.70

Jeff would have a higher account value than Kurt

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Matt inherited as a trust a fifteen-year annuity-immediate with annual payments. He has been told that the annuity payments earn
Pavel [41]

Answer:

effective annual interest rate = 6.32%

annual payment = $1,585

Explanation:

I believe that this is an ordinary annuity, so we can use the future and present value of an ordinary annuity formula:

FV = annual payment x FV annuity factor, so annual payment = FV / FV annuity factor

PV = annual payment x PV annuity factor, so annual payment = PV / PV annuity factor

we can equal both equations:

PV / PV annuity factor = FV / FV annuity factor

FV / PV = FV annuity factor / PV annuity factor

$37,804.39 / $15,077.10 = FV annuity factor / PV annuity factor

2.5074 = FV annuity factor / PV annuity factor

the easiest way to solve this is to use an annuity table since we already know that there are 15 periods (I used an excel spreadsheet):

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

1                                 16.097                   13.865                      1.1609

2                                17.293                   12.849                      1.34586

3                                18.599                    11.938                      1.55797

4                               20.024                     11.118                       1.80104

5                                21.579                   10.380                      2.07890

<u>6                               23.276                   9.7122                       2.3966</u>

<u>7                                25.129                   9.1079                       2.7590</u>

8                                27.152                   8.5595                       3.1721

9                                29.361                   8.0607                      3.6425

10                               31.772                   7.6061                         4.4112

The interest rate must be between 6 and 7%:

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

6                               23.276                   9.7122                       2.3966

6.1                             23.45404              9.6461                       2.43145

6.2                            23.63369              9.5858                      2.46549

6.3                            23.81491               9.52467                     2.50034

6.31                           23.83312               9.51851                     2.50387

<u>6.32                          23.85135               9.51236                     2.5074</u>

6.4                            23.99773              9.46337                     2.53585

effective interest rate = 6.32% per year

annual payment = $37,804.39 / 23.85135 = $1,585

           

6 0
3 years ago
The term "management" refers to the process of getting things done, effectively and efficiently, through and with other people.
galben [10]

Answer:

Management implies a conception and practice regarding power, administration and ways of building consensus and hegemony within an organization or institution. Management is the way to carry out the articulation between the perspectives, through the organizational modes that serve the same and that are consistent with the fines and objectives of the institution.

Explanation:

According to this, the management action crosses the entire institution, in its relationships, in internal coordination, in the ways of establishing work ties, working communities, in the set of options that are adopted when interacting with other institutions It is not just driving or direction. It is the coordination of work processes within the framework of an organization, where roles and tasks are given, which in principle can be articulated generating levels of management.

6 0
3 years ago
Which of the following statements is true?
OlgaM077 [116]

Answer:

These statements are true:

A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:

For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).

C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.

Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.

For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.

D) The Federal Reserve sets the Federal funds rate.

Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.

3 0
3 years ago
Question 3
lozanna [386]

Answer:

OD All are signs of a serious gambling problem.

5 0
2 years ago
1. Ira Schwab opens up a Schwab IRA and places $2,000 in his retirement account at the beginning of each year for 10 years. He b
s2008m [1.1K]

Answer:

He will have $102,979 in his retirement account in 10 years.

Explanation:

Annual Payment = $2,000

Number of Year = n = 10

Interest rate = i = 5%

Compounded Quarterly

Future value after 10 years

FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )

FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )

Future value = $102,979

So, Ira Schwab will have $102,979 in his retirement account in 10 years.

5 0
3 years ago
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