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Scrat [10]
3 years ago
15

Since your first birthday, your grandparents have been depositing $140 into a savings account every month. The account pays 12%

interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to ________.
Business
1 answer:
guajiro [1.7K]3 years ago
5 0

Answer:

The correct answer is: $5,140.80.

Explanation:

Simple Interest is a quick method of calculating the interest charged on a loan or the interest accrued out of an investment. It is determined by multiplying the interest rate by the principal by the number of periods. It is one of the most common methods used in finance to calculate the return on certain investments.

In the example, the number of years considered to calculate the interest is 17 because the 18th year on interest is realized by the end of that year. Thus:  

  • Deposit per year: $140
  • Interest per year: $140 x 12% = $16.80
  • Interest accrued: $16,8 x 17 = $285.60

  • Total savings: (Deposit per year x number of years) + interest accrued
  • Total savings: ($140 x 18) + $285.60
  • Total savings: $5,140.80
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Answer:

c. 10.38%

Explanation:

Loan Amount = $10,000

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Interest Payment for the year = $1,000

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Nominal interest rate = r = 10%

Number of periods = m = 4

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3 years ago
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Answer: The recessionary gap will be equal to 1 trillion yen divided by 2.5 or 0.4 trillion yen

Explanation:

From the question, we are informed that GDP gap of 1 trillion yen and the marginal propensity to consume (MPC) is 0.60. Also, to close the GDP gap, the prime minister has decided to increase government spending. This means that there will be a recessionary gap because the actual GDP will be less than the potential GDP.

Fir the economy to be brought to its potential GDP, the spending of the government will give a stimulus to the economy. Since MPC is 0.6, the multiplier will be:

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