1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svp [43]
3 years ago
11

Suppose you invest $1000 at an interest rate of 6%, compounded annually. Calculate the equivalent interest rate under continuous

compounding (find the interest rate r that would give the same result if interest were compounded continuously). Hint: You can consider the situation for 1 year (let t=1).
Business
1 answer:
Vikki [24]3 years ago
8 0

Answer:

The equivalent interest rate under continuous compounding is 5.8%

Explanation:

Annual compounding

A = P(1+r)^n

P = $1,000

r = 6% = 0.06

n = 1 year

A = 1000(1+0.06)^1 = 1000(1.06) = $1060

Continuous compounding

A = Pe^rt

A = $1060

P = $1000

t = 1 year

1060 = 1000e^r

e^r = 1060/1000 = 1.06

e^r = 1.06

r = ln 1.06 = 0.058 = 5.8%

You might be interested in
A marketing manager had a goal to improve market share for his paper plates by 2 percent in the coming year, and he felt he’d ne
IgorLugansk [536]

Answer:

The correct option is (A)

Explanation:

Social media campaign for the most part, relies upon the marketing goals and objectives of an organisation. The manager has applied objective and task budgeting technique to allocate resources towards marketing campaigns to achieve specific objectives. It is a better option to allocate resources rather than to wait and spend arbitrary money.

8 0
3 years ago
Pagsasagawa NG angkop na kilos NG pamahalaan tungo sa pagtupad NG mga tungkulin sa pamilihan?
Illusion [34]
Business management
8 0
3 years ago
This company was incorporated as a new business on January 1, 2019. The company is authorized to issue 50,000 shares of $5 par c
weqwewe [10]

Answer:

Amount of the company's total capital stock at December 31, 2019:

Common stock = 8,000 x $15 =                 $120,000

Preferred stock = 2,000 x $30 =               <u>$60,000</u>

Total issued share capital                          $180,000

Add: Net income at 31 December, 2019    <u>$375,000</u>

Total capital stock                                        <u>$ 555,000</u>

<u />

Explanation:

Total capital stock is the aggregate of par value of common stock, par value of preferred stock and net income.

8 0
3 years ago
What does the price elasticity of supply measure? Click or tap a choice to answer the question. how income affects spending the
Zolol [24]

You didn't put all the alternatives, but I understand economics and I know exactly that concept.

Supply price elasticity measures how price changes impact the supply of goods and services. If the elasticity of supply is elastic, it means that supply is very sensitive to price changes. If the price goes down even slightly, the supply of goods will fall sharply. If the price increases, even if little, the offer will increase much. Conversely, if supply is inelastic, price changes will have little effect on supply for the good. If the price goes down, there will be little impact on the supply of the good. If the price increases, there will also be little impact on supply.

4 0
3 years ago
You are expected to do a presentation of your business plan to a group of potential investors. Explain how you would respond to
UNO [17]
Questions from potential investors will be related to the functionality of the business plan presented. These questions have to be answered in a professional manner in the sense that the presenter has to be friendly and accommodating in his attitude. He should make eye contacts with the questioners. Each question should be answered with the goal of making the questioner understand the question that is bothering him or her. Answers should be given in a formal and explanatory tone that suggest that the presenter knows what he is talking about.
7 0
3 years ago
Other questions:
  • I.D. Clair Co. recorded a right-of-use asset of $100,000 in a 10-year operating lease. Payments of $14,795 are made annually at
    6·1 answer
  • Darla sells roses in a competitive market where the price of a rose is $5. use this information to fill out the revenue columns
    5·1 answer
  • The journal entry for the collection of the notes is A. Debit Cash 4,000; Credit Accounts Receivable 4,000 B. Debit Cash 3,018;
    15·1 answer
  • Jim Bob Airlines has one 57 seat plane. On its last five flights it had 44 passengers from MSY to DFW, 49 passengers from DFW to
    7·1 answer
  • What do you think the challenges are for working with team members from around the world?
    14·1 answer
  • To answer a question such as "at what time of day does our company sell the most products?" you would use ________ data mining.
    13·1 answer
  • Consider the market for dog walkers that is currently in equilibrium. If the government institutes a minimum wage that is below
    6·1 answer
  • Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower
    7·1 answer
  • Information of Company X:
    15·1 answer
  • Firms often use a(n) __________ when working on a major project involving the production of a large item such as an airplane, sh
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!