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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:Net Income/ loss= -$37,100

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Explanation:

Net income/loss for Raines Umbrella Corp In 2018

Sales                                                        $715,000

less:  Cost of goods sold                        -$446,000

Administrative and Selling expenses        -$95,000

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Net loss                                                          -$37,100

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= $33,500 + $140,500 - $0

= $174,000

7 0
3 years ago
Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while transatlantic air travel in econ
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