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3 years ago

If you put $700 in a savings account at an interest rate of 3 percent, how much money will you have in one year?

Business

1 answer:

Elanso [62]3 years ago

7 0

Answer:

$721

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

= $700 × (1 + 0.03)^1

= $700 × 1.03

= $721

By applying the future value formula, we can get the value of money after considering the time period and the interest rate

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gulaghasi [49]

Answer:

True

Explanation:

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3 years ago

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3 years ago

A senator from a state with several steel-rod factories explains that it is necessary to impose trade restrictions, such as a ta

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Answer:

Jobs argument

Explanation:

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According to this, the answer is that the senator is using the jobs argument to argue for the trade restriction on steel rods because he claims that it is necessary to impose those restrictions to protect the workers from losing their jobs.

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3 years ago

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3 years ago

You pay 20% down on a home with a purchase price of $180,000. Your bank will loan the remaining balance at 7% APR. You have an o

Mariulka [41]

The difference between the annuity payment paid under the annual plan and that under the monthly plan is $11,496.43.

The Annuity Difference

An annuity is a series of payments made at equal intervals such as monthly, quarterly, or annually.

The annuity payment under each of the two plans in the question can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

For the annual plan, the annuity payment can be calculated using equation (1) as follows:

PV = Present value = Loan from bank = Purchase price * (100% - Percentage of down payment) = $180,000 * (100% - 20%) = $144,000

PA = P = Annuity payment under annual plan = ?

r = APR = 7%, or 0.07

n = number of periods or years = 30

Substitute the values into equation (1) and solve for PA, we have:

$144,000 = PA * ((1 - (1 / (1 + 0.07))^30) / 0.07)

$144,000 = PA * 12.4090411835059

PA = $144,000 / 12.4090411835059

PA = $11,604.44

For the monthly plan, the annuity payment can be calculated using equation (1) as follows:

PV = Present value = Loan from bank = $144,000

PM = Annuity payment under monthly plan = ?

r = APR / 12 = 7% /12 = 0.07 / 12 = 0.00583333333333333

n = number of periods or months = 30 * 12 = 360

Substitute the values into equation (1) and solve for PM, we have:

$144,000 = PM * ((1 - (1 / (1 + 0.00583333333333333))^360) / 0.00583333333333333)

$144,000 = PM * 150.307567947822

PM = $144,000 / 150.307567947822

PM = $958.04

The difference between the annuity payment paid under the annual plan and that under the monthly plan can therefore be calculated as follows:

Difference = PA – PM = $11,604.44 - $958.04 = $11,496.43

Therefore, the difference between the annuity payment paid under the annual plan and that under the monthly plan is $11,496.43.

Learn more here: brainly.com/question/13405769.

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2 years ago