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ExtremeBDS [4]
4 years ago
6

An online bank is offering to pay 0.30​% interest per month on deposits. Your local bank offers to pay 0.70​% interest quarterly

​ (every 3​ months). Which is the higher interest​ rate?
Business
1 answer:
makvit [3.9K]4 years ago
4 0

Answer:

<em>The higher interest rate is 0.3% monthly rather than 0.7% quarterly</em>

Explanation:

<u>Equivalent Rates of Interest</u>

Rates of interest are related to time. If we are given a specific monthly rate r, it can be found an equivalent rate in another time base. But it depends on the type of interest we're working with (simple or compound)

If we have a r=0.3% per month, we can find the equivalent quarterly rate by simply multiplying by 3, if the investment is made on the simple interest type. In this case r = 0.3%*3 = 0.9% quarterly.

If we are working with compound interest, the equivalent rate is more complicated to find

(1+r)=(1+0.003)^3=1.0009003

We find

r=0.009003*100=9.003\%

In both cases, the higher interest rate is 0.3% monthly rather than 0.7% quarterly

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3. If the Wall Street Journal published an article w/ the headline "Poultry Farmers Detect Infectious Avian Bird Flu," what woul
Vadim26 [7]

Answer:

If such a headline was published, the demand for chicken and its byproducts would plummet. The demand curve would shift to the left, meaning that the quantity demanded would decrease at all price levels.

The quality of the chicken and its byproducts has changed here, since they would turn into potentially unhealthy food.

The determinant of the demand for chicken products that is altered by this article is consumer preferences. The health of consumes is at risk, which would alter their preferences due to fear of getting sick.

5 0
3 years ago
Mr. Jones decides to purchase a car for $10,000. The dealer offers to finance the car at 8% interest. What is the payment amount
algol13

Answer:

$9,200

Explanation:

Mr Jones is expected to pay $9,200. Here is how I came by this amount.

Purchase amount = $10000

Interest rate = 8% is offered by dealer to finance the car.

10,000 of 8%

= 10000 x 0.08

= 800

The purchase amount of 10,000 dollars minus 800

= $9,200

I hope this helps!

7 0
3 years ago
Al invested $7,200 in an account that pays 4 percent simple interest. how much money will he have at the end of five years?
Gre4nikov [31]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Below are the choices that can be found form other sources:

A. $8,710
B. $8,056
C. $8,640
D. $8,678
E. <span>$8,299
</span>
The amount of money  will he have at the end of five years is C $8,640
4 0
3 years ago
You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will yo
ahrayia [7]

Answer:

gain will treat as capital gain at long term tax rate

Explanation:

given data

bought shares = 1,000  

stock for = $60.59 per share

sold  = $82.35 per share

solution

as gain from sale of stocks is held for an investment purpose and it is treated as capital gain

when stock is here held for more than year

so gain is taxed as long term capital gain

and when gain is less than year  than gain taxed short term capital gain

but here we have given stock for more than year

so here gain will treat as capital gain at long term tax rate

4 0
3 years ago
You decide to open a savings account, and you notice a sign in your bank that indicates deposits are fdic insured. what protecti
GalinKa [24]
The reason for the FDIC, then, is to protect investment accounts against future bank disappointments. At present, reserve funds stores are guaranteed against such disappointments up to a furthest reaches of $250,000, in this way guaranteeing the larger part of individual bank accounts are secured.
4 0
4 years ago
Read 2 more answers
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