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Y_Kistochka [10]
3 years ago
11

Your brother has asked you to help him to choose an investment. He has $6,000 to invest today for a period of two years. You ide

ntify a bank CD that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years?
Business
1 answer:
kramer3 years ago
3 0

Answer:

$ 6, 529.40

Explanation:

The value of the investment will be the future value of $6000 invested at 4.25 percent compounded quarterly for two years.

The formula for calculating the future is as below.

FV = PV × (1+r)n

where FV = Future Value

PV = Present Value : $6000

r = annual interest rate: 4.25 % divide by four

n = number of periods: 8 (2 x 4)

Since interest is paid quarterly or four times per year, the applicable interest rate will be 4.25 /4 = 1.0625%

There will be 8 periods( 4 quarters per year x 2)

Fv = 6000 x (1 + 1.0625/100)8

Fv =6000 x (1+ 0.010625)8

Fv =6000 x 1.08822900

Fv= 6529.3740

FV= $ 6, 529.40

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Consider the following data for a closed​ economy: Y​ = ​$12 trillion C​ = ​$8 trillion G​ = ​$2 trillion Spublic​ = ​$negative
Rufina [12.5K]

Answer:

B. S and I drop by ​$0.60 trillion.

Explanation:

We know that

Y = C + I + G

$12 trillion = $8 trillion + I + $2 trillion

$12 trillion = $10 trillion + I

So, I = $12 trillion - $10 trillion

       = $2 trillion

As the government purchases increase from $2 trillion to $2.60 trillion

and the rest of the things remain the same.  

So New I = $12 trillion - $8 trillion - $2.60 trillion

               =  $1.4 trillion

So, the difference would be equals to

= $2 trillion - $1.4 trillion

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The $0.6 trillion reflect fall in the investment  

And the saving and the investment are equal to each other

Hence, the B option is the right answer

4 0
3 years ago
Which of the following is recommended when paying a credit card bill?
patriot [66]

Answer:

C. Pay more than the minimum amount every month.

Explanation:

Because credit cards have very high interest rates, and the interest is compounded every day, it is recommended to pay more than the minimum amount every month, so that the total credit card bill is paid out more quickly.

What happens when you pay more than the minimum amount every month is that you are paying not only the interest and principal that is due, but you are also paying additional principal. This additional principal payment is what will reduce the amount that will need to be paid in the future.

3 0
3 years ago
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Leokris [45]

Answer:

The Number of kanban card sets is 2.

Explanation:

c =  5

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d = 3 vehicles/hour

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Option A                                              

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There is frictional instability, since both employers and employees are diverse, and the dynamics of market forces can lead in a shortage. Such a misalignment may be linked to expertise, salary, job time, place, mood, taste, and many other variables.

8 0
3 years ago
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