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ELEN [110]
2 years ago
15

Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9% compounded daily. a. Based on the EAR (or EFF%),

which bank should you use? You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is higher. You are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account.
Business
1 answer:
Pie2 years ago
3 0

Answer:

Bank A should be chosen.

Explanation:

Given:

Effective annual rate (EAR) of bank A = 10%

Bank B pays 9% compounded daily. EAR of bank B is calculated below:

EAR = ( 1+\frac{i}{n})^{n} -1

Where, i is 0.09

            n is compounding period that is 365 (since it is compounded daily)

EAR = ( 1+\frac{0.09}{365})^{365} -1

       = 1.0942 - 1

       = 0.0942 or 9.42%

Bank B pays EAR of 9.42%

Based on EAR, Bank A should be selected as it pays higher EAR of 10%.

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Explanation:

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2 years ago
The salesperson for the Big Apple Sign Corporation was trying to get a hardware storeowner to buy a new kind of advertising tool
Mars2501 [29]

Answer:

The answer is: E) modified rebuy

Explanation:

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In this case, the store owner had already bought advertising tools before, but not this type.

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3 years ago
Read 2 more answers
All of the following are permitted investments in individual retirement accounts except: _______
yaroslaw [1]

All of the following are permitted investments in individual retirement accounts except commodity futures.

<h3>What is commodity futures?</h3>

Contracts for the purchase or sale of commodities at a predetermined price and on a specific date in the future are known as commodity futures contracts. Along with financial instruments and currencies, commodities also include things like metals, oil, grains, and animal goods. With a few exceptions, trading in futures contracts must take place on a commodity exchange's trading floor.

The federal government agency that oversees the trading markets for commodity futures, commodity options, and commodity swaps is called the Commodity Futures Trading Commission (CFTC). The National Futures Association (NFA), the independent regulator for anyone who trades futures with the public, requires registration from anyone who advises futures traders or engages in futures trading.

To know more about commodity futures, visit:

brainly.com/question/27818554?

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5 0
1 year ago
On the basis of this information, which of the following statements is CORRECT? a. Prestopino's cash on the balance sheet at the
mylen [45]

Answer:

b. Prestopino had negative net income in the current year

Explanation:

Retained earnings at the end of previous year were $700,000, but retained earnings at the end of current year had declined to $320,000.

• The company does not pay dividends.

• The company's depreciation expense is its only non-cash expense; it has no amortization charges.

• The company has no non-cash revenues.

• The company's net cash flow (NCF) for current year was $150,000.

On the basis of this information, which of the following statements is CORRECT? Prestopino had negative net income in the current year

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Prestopino NCF in the current year must be higher than its NCF in the previous year and it cash on the balance at the end of the year must be lower than the cash it had on the balance sheet at the end of previous year

8 0
3 years ago
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andreev551 [17]

Answer:

A) kiosk

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Based on the information provided within the question it can be said that in this scenario the vending machines in the airport is a kiosk. This term refers to  physical structure which is used either to display information to passing strangers or to provide the individuals passing by with a product or service. Which in this case the structure/vending machine is providing beauty products.

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