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Vesnalui [34]
3 years ago
13

A financial institution offers a "double-your-money" savings account in which you will have $2 in 11 years for every dollar you

invest today. What stated annual interest rate (assuming monthly compounding) does this account offer
Business
1 answer:
quester [9]3 years ago
7 0

Answer:

The correct answer is 0.06317911524 or 6.3%.

Explanation:

According to the scenario, the given data are as follows:

FV = $2

PV = $1

Time period (t)= 11 years

So, we can calculate the rate of interest by using following fomula:

FV=PV ( 1 + r ÷12)^12t

By putting the value, we get

$2 = $1 ( 1 + r ÷ 12)^(12 × 11

$2^(1 ÷ 132) = 1 + r ÷ 12

r ÷ 12 = (1.00526492627 - 1)

r = 0.00526492627× 12

= 0.06317911524 or 6.3%

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Answer:

option (c)  $167,597.77

Explanation:

Data provided in the question:

Monthly mortgage payment = $900

Duration of loan, n = 30 years = 360 months

Interest rate = 5%

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Now,

Mortgage loan can he afford

= Monthly mortgage payment × [ (1 - ((1 + r)ⁿ)⁻¹ ) ÷ r ]

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= $167,597.77

Hence,

The answer is option (c)  $167,597.77

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3 years ago
A monopsonistic employer in an unorganized (nonunion) labor market will: Group of answer choices pay a wage rate in excess of la
pogonyaev

Answer:

pay a wage rate less than labor's MRP

Explanation:

A monopsonistic employer in an unorganized (nonunion) labor market will: "pay a wage rate less than labor's MRP"

The above statement is based on the idea that Monopsony is a market situation whereby a single buyer or firm is the only purchaser of a good or service, which in most cases has to do with the purchase of labor.

And given the fact that the firm is the sole purchaser of labor, where there is no labor union, there is a high tendency that such firm or employer pays a wage rate less than labor's marginal revenue productivity.

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