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USPshnik [31]
3 years ago
5

You are torn between two saving accounts where to put your $1,500 in scholarship money for a year until you need it for next yea

r’s tuition. One is in Bank Wan and the other in C-T Bank. Bank Wan is offering a 2.5% nominal rate, with daily compounding of interest, and C-T Bank offers 3.0% with semi-annual compounding. Which one would you choose?
Business
1 answer:
mrs_skeptik [129]3 years ago
7 0

Answer:

I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan

Explanation:

The two options can be expressed as shown;

Option 1: Bank Wan

A=P(1+r/n)^nt

where;

A=Total amount after a given time

P=Initial deposit

r-Annual interest rate

n=number of times the interest is compounded annually

t=number of years of the investment

In our case;

P=$1,500

r=2.5%=2.5/100=0.025

n=365 days

t=1 year

Replacing;

A=1,500(1+0.025/365)^(365×1)

A=1,500(1.02530

A=1,537.97

Total amount after a year=$1,537.97 for Bank Wan

Option 2: C-T Bank

P=$1,500

r=3%=3/100=0.03

n=2

t=1

Replacing;

A=1,500(1+0.03/2)^(2×1)

A=1,500(1.015)^2

A=1,545.3375

Total amount after a year=$1,545.3375 for C-T Bank

Total amount received to be received from C-T Bank-Total amount to be received from Bank Wan

=(1,545.3375-1,537.97)=$7.3675

I would choose to invest in C-T bank since it offers $7.3675 more compared to Bank Wan

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Jedida is the new manager for a team in an advertising agency. Her team has worked together effectively for the last 10 years, a
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Explanation:

Task oriented, effective, group cohesiveness, neutrolize.

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3 years ago
Control Inc. has no debt and a total market value of $100,000. EBIT are projected to be 6,000 if economic conditions are normal.
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Answer:

$3.12

Explanation:

For expansion:

EBT = EBIT - Interest

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Net income = EBT - Tax

                   = $7,800 - $0

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Earning per share for the case of strong expansion period before any debt is issued:

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5 0
3 years ago
Waterway industries, has 4700 shares of 5%, $50 par value, cumulative preferred stock and 100000 shares of $1 par value common s
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Since the preferred stocks are cumulative in nature, the dividend amount not paid in the current year will be accumulated and paid in the next year.

Preferred dividend to be paid in 2017 = Value of preferred stock x Dividend rate

= (4700 x $50) x 5%

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Total dividend to be paid in 2018 = Dividend to be paid in 2018 + Dividend to be paid in 2017 – Dividend paid in 2017

= 11750 +11750 -7900

= $15600

5 0
3 years ago
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