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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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Explanation:

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Since Megg has an opening balance of 300, she can't open a account that requires a minimum balance of 400. Likewise, it'll be unwise to charges $6 monthly when the balance in the account falls below 300.

Therefore, she should open this account with a monthly fee of $4 and no minimum monthly balance required since the cost of keeping the account is cheaper and better than others.

8 0
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Answer:

<em>Explained Below.</em>

Explanation:

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3 years ago
Which describes the liability of an owner of a sole proprietorship?
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hope this helps
3 0
3 years ago
Read 2 more answers
Demands differ from wants because:______.
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Answer:

The correct answer is:

demands reflect a decision about which wants to satisfy and a plan to buy the good, while wants are unlimited and involve no specific plan to acquire the good. (d)

Explanation:

Let me first try to define what demand and want are:

want: want is a desire for a product or service. It is said that wants are unlimited, however, the resources to actualize such wants are in a limited supply.

Demand: Demand is the quantity of good or service that a person is willing and able to pay for because of the availability of resources to do so, at a given price and time.

For a clearer understanding, demand can be seen as a subset of want that a consumer takes a further step to acquire, not just desire. There is a specific plan to acquire such wants.

5 0
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