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Dafna1 [17]
3 years ago
11

Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate.

Assume that fixed interest rates for below questions:
Katherine deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 6.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years?

a. $929.00
b. $429.00
c. $535.18
d. $1,147.66

If Katherine's savings account earns 6.6% compounded annually, all other things being equal, how much money will Katherine have in her account in 13 years?

a. $929.00
b. $533.00
c. $1,147.66
d. $984.69

Suppose Katherine had deposited $500 in a savings account at a second bank at the same time. The second bank also pays a nominal interest rate of 6.6% but with quarterly compounding. Keeping everything else constant, how much money will Katherine have in her account at this bank in 13 years?
Business
1 answer:
Svetradugi [14.3K]3 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

1) Deposit= $500

An annual simple interest rate of 6.6%

Number of years= 13 years

To calculate the final value, we need to use the following formula:

FV= PV*[i*n]

FV= 500*(0.066*13)= $429

2) Deposit= $500

An annual compounded interest rate of 6.6%

Number of years= 13 years

To calculate the final value, we need to use the following formula:

FV= PV*(1+i)^n

FV= 500*(1.066^13)

FV= $1,147.66

3) Deposit= $500

A quarterly compounded interest rate of 6.6%

Number of years= 13 years

Now:

n= 13*4= 52

i= 0.066/4= 0.0165

FV= 500*(1.0165^52)= $1,171

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Naddika [18.5K]

Answer:

The current BEP is                             727 units

with the proposed change it will be 875 units

The change increase the break even point by 148 units

Explanation:

The BEP in units will be:

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

Where:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

40 - 18 = 22 contribution margin

then we calcualte BEP

16,000 / 22 = 727,27 units

<u>with the proposed change:</u>

40 - 16 = 24 contribution margin

16,000 + 5,000 = 21,000 fixed cost

21,000 / 24 = 875

875 - 727 = 148

3 0
3 years ago
Granting access to a user based upon how high up he is in an organization violates what basic security premise?
hodyreva [135]

Granting access to a user based upon how high up he is in an organization violates "the principle of least privileges."

As the principle of least privileges states that a person should be given only those privileges that are needed or are necessary to perform a specific job or task and nothing more.

The principle of least privileges states that you assign users the minimum set of privileges which they require to do their jobs, according to their roles.

The principle of least privilege prevents the spread of malware on your network. An administrator or superuser with access to a lot of other network resources and infrastructure could potentially end up spreading malware to all those other systems which he gets access to.

Hence, if the organization grants access to a user based upon how high up he is then the organization violates the principle of least privileges.

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3 0
2 years ago
Resource leveling is a network scheduling technique that seeks to assign nearly equivalent work units to each member of the proj
lora16 [44]

Answer:

False

Explanation:

Resource leveling in project management is a technique used to ensure that over-allocation of resource or conflicts as a result of over-allocation does not occur.

Cheers

3 0
4 years ago
Journalize Period Payroll The payroll register of Chen Heritage Co. indicates $3,000 of social security withheld and $750 of Med
bearhunter [10]

Answer:

Following are the journal entries recorded for the payroll of current time period;

Debt: Salary Expense = $50,000

Credit: Tax Payable by Medicare = $750

Credit: Deduction Payable For Employee Saving = $2,550

Credit: Income Tax payable for Federal Employees = $9,000

Credit: Tax payable for Social Security = $3,000

Credit: Salaries payable to Employees = $34,700

6 0
3 years ago
What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividen
Ganezh [65]

Answer:

The answer is 12%

Explanation:

Initial investment:

$5,000 in equity + $5,000 in debt

=$10,000

Number of shares bought with the initial investment is:

Initial investment/Stock price

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The shares increase in value by 10%: $10,000 x 0.10 = $1,000.

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The rate of return will be:

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0.12

Expressed as a percentage:

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8 0
3 years ago
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