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katrin2010 [14]
3 years ago
6

Anastasia was trying to decide which investment plan would be best over 10 years. Bank A was offering 8.5% simple interest on he

r money using the formula . Bank B was offering 8% compounded annually using the formula . Which bank is a better investment if she has $2,000 to invest for 10 years?
Business
1 answer:
White raven [17]3 years ago
4 0

Answer:

Bank B is the better investment

Explanation:

Investment = P =  $2,000

Number of years = n = 10

If the She invest in Bank A

r = 8.5% simple interest

Accumulated value after 10 years = A =P + (P x r x n) =  $2,000 + ( $2,000 x 8.5% x 10 ) = $2,000 + $1,700 = $3,700

If the She invest in Bank B

r = 8% Compounded yearly

Accumulated value after 10 years = A = P x (1 + r )^n =  $2,000 x ( 1 + 8% )^10 = $2,000 x ( 1 + 0.08 )^10 = $2,000 x ( 1.08 )^10 = $2,000 x 2.1589 = $4,317.8

= $4,318

Hence Bank B is the better investment because it make more money than in Bank A after 10 years.

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Answer:

$898.54

Explanation:

The Price of the Bonds is equal to the Present Value or Fair Value of the Bonds.

Using the Financial Calculator, Input elements will be as follows :

N = 15

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YTM / i = 6.8%

Fv = $1,000

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The Coupon rate is lower than the market rate thus the Bonds will fetch a lower price.

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3 years ago
How can a country achieve higher levels of competition and a variety of products in an industry with only one or two domestic fi
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Through promoting intra-industry trade, a country can increase levels of competition and the range of products produced in an industry with only one or two local enterprises producing a good. International trade for goods produced by the same business is known as intra-industry trade.

According to the idea of economies of scale, production costs often decrease as output scale increases. When it makes it possible for one or two large producers to supply the entire country, it becomes particularly important to international trade. A way to maintain consumer choice and competition while combining economies of scale-driven lower average manufacturing costs is through international trade.

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2 years ago
Which important biochemical process receives a supply of nad ions from the fermentation process during anaerobic respiration?
Alexxandr [17]

Answer:

Glycolysis

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You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the stock price at the end of the y
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Answer:

3.84%

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Using this formula

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Dividend Yield(%) =$1.79/$46.55

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