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Marysya12 [62]
3 years ago
9

A savings account earns 8% interest. If $1,000 is invested, how many years is it until each of the following amounts is on depos

it?a. $1,360b. $2,720c. $4,316d. $6,848
Business
1 answer:
guapka [62]3 years ago
3 0

Answer:

a. 4 years

b. 19 years

c. 19 years

d. 25 years

Explanation:

The number of years, n is calculated for each future value as follows :

a. $1,360

Pv = -  $1,000

Pmt = $ 0

P/y = 1

r = 8 %

Fv = $1,360

n = ?

Using a Financial Calculator, the number of years, n is 3.9953 or 4 years

b. $2,720

Pv = -  $1,000

Pmt = $ 0

P/y = 1

r = 8 %

Fv = $2,720

n = ?

Using a Financial Calculator, the number of years, n is 13.00 or 13 years

c. $4,316

Pv = -  $1,000

Pmt = $ 0

P/y = 1

r = 8 %

Fv = $4,316

n = ?

Using a Financial Calculator, the number of years, n is 19.00 or 19 years

d. $6,848

Pv = -  $1,000

Pmt = $ 0

P/y = 1

r = 8 %

Fv = $6,848

n = ?

Using a Financial Calculator, the number of years, n is 24.9991 or 25 years

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8 0
3 years ago
Which of the following tools can the Fed use to contract the money supply? a. To expand the money supply? b. Increasing the disc
Alina [70]

Answer:

See below for details.

Explanation:

To contract the money supply the the Fed can increase the discount rate. This shall increase the cost of borrowing and thus the demand for money should go down. Furthermore, people have more incentive to save as they are getting an increased return thus the overall money supply contracts.

The Fed can also sell short term US securities, this reduces the amount of excess reserves available to banks and restricts their ability to make loans thus contracting the money supply.

The Fed can also raise the reserve requirement which reduces the banks ability to lend loans and create money thus contracting the supply again.

To expand the money supply, The Fed can lower the reserve requirements, creating excess reserves for banks that can be loaned out and thus expand money supply.

The Fed can also buy short term securities for money thus increasing the supply of money in the economy.

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Hope that helps.

7 0
4 years ago
g Skysong, Inc. lends Concord industries $40800 on August 1, 2022, accepting a 9-month, 9% interest note. If Skysong, Inc. accru
nirvana33 [79]

Answer:

May 1 2022  Cash                         435540 Dr    

                         Notes Receivable       408000 Cr

                         Interest Revenue          12240 Cr

                        Interest Receivable        15300 Cr

Explanation:

The interest revenue for 5 months was already recorded on 31 december against an interest receivable account that has a balance of 5 months of interest due.

The interest on note for 9 month period is = 408000 * 0.09 * 9/12 = $27540

The 5 month interest recorded on 31 december is 408000 * 0.09 * 5/12 = 15300

Thus, the interest revenue to be recorded on May 1 will be 4 months interest that is 27540 - 15300 = 12240

4 0
3 years ago
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