Ask question

Ask question

All categories

2 years ago

6

Which of the following conditions will maximize the amount of interest you earn?

2 answers:

horrorfan [7]2 years ago

7 0

Answer

A. High interest rate and long time period conditions will maximize the amounts of interest you earn.

Explanation

When interest rates are high, there will be a higher increase from the savings and money invested that was first placed. Continuation of such a condition will in the long run caused an accumulation of the added interest thus making it to keep growing larger if not withdrawn.

Nataly_w [17]2 years ago

6 0

Which of the following conditions will maximize the amount of interest you earn?

A

A high interest rate & long time period

You might be interested in

Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,

kolezko [41]

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

Cr Cash 10,000

Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date Cash flow Discount Balance

January 2, 2021 -$10,000 $10,515.42

January 2, 2022 $1,000 $171.81 $10,343.61

January 2, 2023 $1,000 $171.81 $10,171.80

January 2, 2024 $11,000 $171.80 $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

Cr Interest revenue 1,171.81

7 0

2 years ago

A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund t

DaniilM [7]

Answer:

The quarterly deposit required is $ 20,578.36

Explanation:

in order to determine the needed quarterly deposit, we make use of pmt formula in excel, which is given as :

=-pmt(rate,nper,-pv,fv)

rate is the rate of return on the deposit at 8% per year but 2% per quarter(8%/4)

nper is number of deposits required in the fund,which number of years ,5 multiplied by 4(4 deposits per year)

pv is the present of the value of the future amount which is zero as it is not required.

Fv is the amount expected in 5 years which is $500,000

=-pmt(2%,20,0,500000)

pmt= $20,578.36

6 0

3 years ago

The following information pertains to the West Division of Burger Company:

GenaCL600 [577]

Answer:

D) $4,550

Explanation:

Contribution margin = Net Sales - Total Variable cost

Net sales $6,000

Les: Variable costs:

Cost of merchandise sold $1,000

Operating expenses <u> $450 </u>

Contribution Margin $4,550

All other costs are fixed cost which are not used in contribution margin calculation.

So the correct answer is D) $4,550.

3 0

2 years ago

After discovering that their company's best software developers are highly analytical, personnel psychologists focused their emp

zmey [24]

This is an example of a strength based selection system. It offers a different perspective on the labor pool.

6 0

3 years ago

When Get the Glare Out needed some information about the potential market for its product, the marketing team looked to the Inte

Romashka [77]

Answer:

secondary data.

Explanation:

Market research can be defined as a strategic technique which typically involves the process of identifying, acquiring and analyzing informations about a business. It involves the use of product test, surveys, questionnaire, focus groups, interviews, etc.

Secondary market research can be defined as a method designed to determine the demographics of a particular target market.

A secondary data can be defined as any form of data that has been obtained or collected earlier by someone else through primary sources for their own purpose and made readily available for other researchers to use. Thus, a secondary data is a type of data that has been previously obtained or collected.

In this scenario, the type of information the marketing team was using is referred to as secondary data because it looked to the Internet to find industry trends and at the market for eyewear products, which uses the same technology that is used in manufacturing its self-darkening windshield.

In conclusion, a secondary data is typically reliant or based on the primary source of information and as such it isn't a first hand experience.

4 0

3 years ago