Answer:
Fran should choose that which compounds quarterly
Explanation:
In Compound Interest investment, the interest at the end of the compounding period is added to form a new base capital.
If this is done every 3 months, the principal at the beginning of each quarter increases while in annual compounding, the interest is added at the end of the year.
Generally, for investment, the more frequent is it compounded the better. On the other hand, less frequent compounding is preferred for borrowers.
Ok let me help you with these questions:
<span>a. The Percentage excess reserve formula can be expressed as (excess reserve required)/(total reserve). We know the required amount is $100B less than $240B, or $140B, and that the total reserve is $1000B, thus we can do it like this
Percentage </span>excess reserve<span>= (140B)/(1000B) = 14%
</span><span>b. We can use the same formula but using 240 instead of 140, So it would be:
Percent excess reserve = (240B)/(1000B) = 24%
</span>c. I<span>f the existing excess reserves were eliminated t</span>he deposits would be locked in the financial institutions and not be able to be removed until additional deposits were made
Answer:
$5,000
Explanation:
Amber offer = 120,000 + 25,000 = $145,000
Original claim = ($50,000 + $25,000) + [$100,000 × (1 - 0.35) = $140,000
Difference = $145,000 - $140,000 = $5,000
So, the after-tax difference to Khalid between Khalid's original claim and Amber's offer is $5,000
Answer:
An open-end management company is a mutual fund.
Explanation:
Answer:
Need for trade offs in pricing objectives
Explanation:
I the given scenario the club is faced with two choices. Either they increase market share and become an industry leader while slashing membership prices, or leave membership price the way it is and meet its target on return on investment.
A trade off is required in this kind of situation.
In a trade off a business will need to lose in one aspect in order to gain in another.
So a choice will need to be made on what the business will be able to lose and come out benefiting more.
If the company values the proposition of increasing its market share and becoming the industry leader, it will slash it's membership price by 50%
