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hoa [83]
3 years ago
10

Renee invested $2,000 six years ago at 4.5 percent interest. She spends her earnings as soon as she earns any interest so she on

ly receives interest on her initial $2,000 investment. Which type of interest is she earning?
A. Free interest.
B. Complex interest.
C. Simple interest.
D. Interest on interest.
E. Compound interest.
Business
1 answer:
tiny-mole [99]3 years ago
7 0

Answer:

C. Simple interest.

Explanation:

Simple interest is money earned by depositing some amount of money in a bank account or an investment account. The amount gained in the simple interest results from the money deposited only (the principal amount). Simple interest earns a constant amount for the entire period of savings or investment as long as the interest rate and the principal amount remain unchanged.

Simple interest is unlike compound interest. In compound interest, the interest earned in a period is added the deposit to make a larger principal amount. Renee is earning simple interest because her earnings are from the principal amount only. Since she is withdrawing her interests as they are earned, meaning her deposits remain the same. She is not allowing her earnings to be compounded with the principal amount to generate more earnings.

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suppose the real rate is 3.4 percent and the inflation rate is 5 percent. what rate would you expect to see on a treasury bill?
Ghella [55]

the rate expected on the treasury bill is 8.57%. enter answer as a percent rounded to 2 decimal places.

The real rate is 2.1 percent

The inflation rate is 3.4 percent

To find the rate which is to be expected on a treasury bill we have to apply fisher's equation

1+R= (1+r)(1+h)

Therefore, the rate on the treasury bill can be calculated as follows

1+R= (1+r)(1+h)

r= 3.4%

= 3.4/100

= 0.034

h= 5%

= 5/100

= 0.05

R= (1+r)(1+h)-1

= (1+0.034)(1+0.05)-1

= (1.034×1.05)-1

= 1.0857-1

= 0.0857×100

= 8.57%

A Treasury invoice (T-invoice) is a brief-term debt obligation backed via the U.S. Treasury Department with an adulthood of one year or less. Treasury bills are generally bought in denominations of $1,000 even as a few can attain a denomination of $five million.

let's say an investor purchases a par price of $1,000 T-bill with an aggressive bid of $950. whilst the T-invoice matures, the investor is paid $1,000, thereby income $50 in interest on the funding.

U.S. Treasury bills are auctioned on a regular schedule. individuals should purchase T-payments from the government using the TreasuryDirect internet site. it is free to register, and it'll function like a brokerage account that holds your bonds. in addition to bidding on new troubles, You also can install reinvestments into securities of an equal type and time period. as instance, you can use the proceeds from a maturing fifty-two-week invoice to shopping for some other fifty-two-week invoice. sure brokerage corporations can also permit buying and selling in U.S. Treasuries.

To learn more about treasury bills visit here:

brainly.com/question/17204626

#SPJ4

7 0
1 year ago
Authors<br> d. p. rosenbaum and g. ganson concluded that the<br> d.a.r.e. program _________.
Pani-rosa [81]

Drug Abuse Resistance Education (D.A.R.E.) is a police officer-led  arrangement of classroom exercises that shows kids (normally in rudimentary or center school) how to remain tranquilize free and oppose peer weight.  

According to Rosenbaum and Hanson (1998), D.A.R.E has no critical in general effect on utilizing cigarettes or liquor  

They concluded that, Given the tremendous uses in time and cash required with D.A.R.E., no doubt proceeded with endeavors should center around different systems and projects that may deliver more significant impacts.

5 0
3 years ago
Our company manufactures and sells calculators for $90 each. A major University has offered us $70 per calculator for a one-time
sergiy2304 [10]

Answer:

Increase in operating income by $5,000

Explanation:

Firstly, we shall compute the additional cost of this order,

Variable Cost = Direct material + Direct Labor + Variable factory overhead

= $25 + $20 + $15 = $60

Note: Fixed cost will not form part of this decision, as the company has additional capacity lying idle, thus no additional fixed cost will be incurred, and the fixed cost allocated i.e. $12 per unit is not relevant, as is just allocation and not incurred, it is a kind of sunk cost allocated.

Relevant cost = $60 per unit

Selling price per unit = $70 per unit

Contribution to profit = $70 - $60 = $10 per unit

Total increase in operating income = $10 \times 500 = $5,000

Thus operating income will increase by this amount.

Increase in operating income by $5,000

8 0
3 years ago
Suppose that businesses buy a total of $170 billion of the four resources (labor, land, capital, and entrepreneurial ability) fr
Delicious77 [7]

Answer:

The businesses paid $24 billion in entrepreneurial ability. This value comes from subtracting the wages, rent and interest from the total amount of businesses' purchase. In this case 170 - 88 - 24 - 34 = 24.

Explanation:

This value can be understood as goodwill that households are recognized for their ideas and can bring a future return to the businesses. The businesses had assessed the future stream of cash the household could bring and, basing our guess on businesses behaving rationally, and they found that 170 was an amount that will recognize these future opportunities

8 0
3 years ago
Ainsley is a middle manager at a large, multinational corporation. She prefers to involve her subordinates in decision making an
lapo4ka [179]

Answer:

<em>The above statement is false.</em>

Explanation:

Max Weber claimed that if the staff actually did what they were told the company would do well.

He already presumed that large organizations would only be capable of functioning effectively if regulations and guidelines were developed, and that everyone accurately followed those regulations.

7 0
3 years ago
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