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
umka2103 [35]
3 years ago
8

First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest

compounded annually. If you made a $54,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years?
Business
1 answer:
stiv31 [10]3 years ago
5 0

Answer:

You will have $10,306 more

Explanation:

In this question, we are asked to calculate the difference in the amount of money we will earn if the same deposit amount is made in two different banks with different interest payment scheme

Firstly, Calculate the amount in the account as follows:

Future value = Interest + Amount = (Am ount x Period x Rate) + Amount = ($54,000 x 10 x 6%) + $54, 000 = $32,400 + $54,000 = $86,400

Therefore, the future value is

$86,400

Now, we calculate the amount by using the compounding as follows:

Future value = Amount x (1+ Rate)^n =

$54,000 * (1+0.06)^10

= $54,000 * 1.791 = $96,706

Therefore, the compound future value is

$96,706

The difference in amount is calculated as follows:

Difference in amount = $96,706 - $86,400 = $10,306

You might be interested in
An employee who pockets cash received from a customer without recording the transaction is an example ofâ a(n):
kirill115 [55]
The correct option is B. Cash register scheme is a type of fraud scheme in which an employee falsely document a refund for a returned product and pocket the money meant for the refunding. It may also occur in form of accepting cash from customers without recording it in the cash register. 
4 0
3 years ago
George received an e-mail that threatened to release his personal financial data unless he paid a fee. That situation is an exam
lutik1710 [3]

Answer:

extortion

Explanation:

extortion is the practice of obtaining something, especially money, through force or threats.

5 0
3 years ago
Read 2 more answers
You are the county commissioner of hazard county. jeb brings a complaint before you that​ dwight's hog farm is creating a terrib
zubka84 [21]
The method that is not a recommended approach supported by externality theory to deal with this problem is the <span>Non-profit intervention. An example to this is to </span><span> test an intervention against a counterfactual case in which it is not in effect.</span>
3 0
3 years ago
You purchase a 30-year, zero-coupon bond for a price of $25. The bond will pay back $100 after
Reil [10]

Answer:

annual compounded return = 4.73 %

so correct option is D) 4.73%

Explanation:

given data

present value = $25

future value = $100

time = 30 year

to find out

annual compounded return

solution

we get here annual compounded return that is express as

annual compounded return = (\frac{FV}{PR} )^{\frac{1}{t}} - 1    ............1

here t is time period and FV is future value and PV is present value

so put here all value in equation 1 we get

annual compounded return = (\frac{100}{25} )^{\frac{1}{30}} - 1

annual compounded return = 0.047294

annual compounded return = 4.73 %

so correct option is D) 4.73%

6 0
3 years ago
A characteristic of a schedule of Accounts Receivable is that
Free_Kalibri [48]
D is the answer I believe
5 0
3 years ago
Read 2 more answers
Other questions:
  • The objective of a best-cost strategy is to: a. Deliver superior value to value-conscious buyers at a comparatively lower price
    13·1 answer
  • Which of the following is an entrepreneur?
    15·1 answer
  • To spur trade, cormoran, brithea, and asmakush decided on economic integration where there were no barriers to trade between the
    7·1 answer
  • Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $380 million on July 1, 2018, at a price of $370
    5·1 answer
  • The ______is a financial statement detailing a firm's assets, liabilities, and owners' equity.
    9·1 answer
  • Torche Corporation Balance Sheet As of March 11, 2020 (amounts in thousands) Cash 14,700 Accounts Payable 2,400 Accounts Receiva
    5·1 answer
  • The Weidmans want to save $20,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 1
    15·1 answer
  • Which are examples of a person changing careers? Check all that apply.
    10·1 answer
  • Labor costs that are clearly associated with employees who directly convert materials to finished product are called:
    6·1 answer
  • If a contingency in a purchase agreement is not fulfilled despite a good faith effort to fulfill it, the party who benefits from
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!