Answer:
1080
Explanation:
Compound interest involves the reinvesting of interest.
The formula for compound interest is given by:
Where P is the principal (i.e the beginning balance),
r is the rate,
n is the number of times it is compounded,
t is the number of years
A is the ending balance.
Given that P = 1000, r = 8% = 0.08, t =1 years and it is compounded annually (i.e n = 1).
Substituting values into the formula and calculating gives:
Answer:
A $500 travelers check
Explanation:
A $500 travelers check is the most liquid asset because it can be directly exchanged for currency. In fact, travelers checks are so liquid that they are included in the money aggregate M1, the money supply measure that is the most liquid.
Answer:
2
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The upper limit on the money supply assuming borrower withdraws currency and leaves the loan balance in the bank after a loan is created is $200,000.
<h3>What is the upper limit on the money supply?</h3>
The first step is to determine the total amount of deposits in the banks.
Deposits = resereves / reserve ratio
2000 / 0.1 = $20,000
Upper limit on money supply = deposits / reserve ratio
20,000 / 0.1 = $200,000
To learn more about reserve ratio, please check: brainly.com/question/6831267
Answer:
The profit margin is the percentage of profit made from sales less all expenses. The higher the profit margin, the better.
Profit margin = (net profit after tax / net sales) * 100
e.g = (93 000 / 250 000) * 100
= 37.2%
The gross profit margin is the percentage of profit made from sales less cost of sales. The higher the gross profit margin, the better.
Gross profit margin = (gross profit / net sales) * 100
e.g = (129 000 / 250 000) * 100
= 51.6%
Since no figures are given, the above examples are given to demonstrate how we compute the margins.
