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arlik [135]
3 years ago
12

Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and on

e that pays an 8.5% APR, compounded daily (Bank Daily). Using only effective annual rates, which bank would you prefer?
Business
1 answer:
Maru [420]3 years ago
6 0

Answer:

8.6% APR, compounded monthly

Explanation:

Effective annual rate = ( 1 + periodic interest rate)^m - 1

8.6% APR = (1.007167)^12 - 1 = 0.089472 = 8.95%

m = number of compounding = 12

periodic interest rate = 8.6% / 12 = 0.717%

8.5% APR = (1.000233)^365 - 1 = 0.088706 = 8.87%

m = number of compounding = 365

periodic interest rate = 8.5% / 365 = 0.02329%

I would prefer the 8.6% APR, compounded monthly because the effective annual rates are higher

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WILL GIVE BRAINLY!!!!!!!!!
AveGali [126]

Answer:

price acts as an incentive to consumers and producers. highest (lowest ) prices to obtain consumer to give up more good consumers react to changing price alternative by stopping the quantity of goods demanded

8 0
3 years ago
Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You will finance the remainder w
postnew [5]

Answer:

$819.98

Explanation:

After making downpayment, the remaining amount is $145,000 - 15000 = $130,000

Using financial calculator:

PV = 130,000

n = 30 years = 360 months

i/r = 6.5%/year = 0.54% / month

FV = 0

PMT = ? (Monthly payment = ?)

--> Monthly payment = $819.98

5 0
3 years ago
Hardware is adding a new product line that will require an investment of $ 1 comma 450 comma 000. Managers estimate that this in
ozzi

Answer:

6.83%

Explanation:

The computation of the accounting rate of return is shown below:

As we know that

Average accounting rate of return = Average annual operating income ÷ Initial Investment

where,

Average annual operating income is

Year 1 net cash inflow           $320,000

Year 2 net cash inflow          $280,000

Years 3-10 ($230,000 × 8)    $1,840,000

Total net cash flows                $2,440,000

Less: Total depreciation      ($1,450,000)

                                              $990,000

Divided it by years of life         ÷ 10  years

Average annual operating income $99,000

So,

Average accounting rate of return is

= $99,000 ÷ $1,450,000

= 6.83%

6 0
3 years ago
Suppose a participant in this experiment was expending $0 worth of effort in studying for each class before the experiment. Over
kow [346]

Answer:

<u>For Maths;</u>

<u>The student would increase time studying for maths.</u>

<u>For English;</u>

<u>The student would increase time studying for English.</u>

<u>Explanation:</u>

This is the case in both cases because there's a certainty that the student earns an A in both cases if he puts in the equivalent  $ amount worth of effort.

The student's ability to adapt to change comes under great test over the next  6 weeks in other to get an A in the math and English classes.

7 0
3 years ago
Macrosoft Company reports net income of $55,000. The accounting records reveal depreciation expense of $70,000 as well as increa
Mrrafil [7]

Answer:

$99,000

Explanation:

According to the scenario, computation of the given data are as follows,

         Net income  = $55,000

Add- Depreciation expense = $70,000

Less- prepaid rent = $50,000

Add- accounts payable = $11,000

Add- Income tax payable = $13,000

Total = $99,000

Hence, Net cash flow from operating activities = $99,000      

4 0
3 years ago
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