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4 years ago

Simple versus compound interest

Business

1 answer:

kherson [118]4 years ago

3 0

Answer:

The correct answers are a. $1719.00 ; c. 2168.86 ; d. $2218.36.

Explanation:

Zoe deposited $900 in a savings account at her bank.

Her account will earn an annual simple interest rate of 7%.

Time for which the money is deposited for 13 years.

Money Zoe would have in her account in thirteen years is

Principal + Principal × time × $\frac{interest rate}{100}$ = 900 + 9 × 13 ×7 = 900 + 819 = $1719

Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $900 balance.

Money Zoe would have in her account in thirteen years is

Principal × $(1 + \frac{interest rate}{100}) ^{time}$ = 900 × $( 1 + \frac{7}{100} )^{13}$ = $2168.86.

Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 7% but with quarterly compounding.

Time has now changed to 4× 13 = 52.

Money Zoe would have in her account in thirteen years is

Principal × $(1 + \frac{interest rate}{100}) ^{time}$ = 900 × $( 1 + \frac{7}{400} )^{52}$ = $2218.36.

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Nominal gross domestic product (GDP) increased from $15.62 trillion to $16.09 trillion, and the price level increased from 120.0

Vesna [10]

Answer:

2.0 percent

Explanation:

Inflation can be defined as the persistent rise in general price levels.

Inflation can be calculated by determining the change in price levels.

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I hope my answer helps you

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4 years ago

John's friend just gave him a pair of concert tickets to see his favorite rock group perform this weekend. Each ticket sells for

Len [333]

Answer:

$80 lost for not working

Explanation:

Opportunity cost refers to the sacrificed benefits as a result of preferring on a particular option over another. As people make choices, the forfeit one option in favor of another. Opportunity cost is the missed value of the next best alternative.

For John, he has a choice between working or going to the concert. He has two tickets worth $50. Working would mean her twice her regular income, which is $20 per hour. If he works for four hours, his total earning will be $80. If John chooses to go to the concert, he will miss the opportunity to earn $80. The opportunity cost will be the missed $80 that he would have received from working.

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4 years ago

4 Sold $600 of merchandise on credit (that had cost $240) to Natara Morris, terms n/15. 5 Sold $8,200 of merchandise (that had c

Romashka [77]

Answer:

Accounts Receivables 600 debit

Sales Revenues 600 credit

--to record sale--

COGS 240 debit

Inventory 240 credit

--to record COGS of the previous sale--

Accounts Receivables 7,708 debit

credit card expense 492 debi

Sales Revenues 8200 credit

--to record sale--

COGS 3280 debit

Inventory 3280 credit

--to record COGS of the previous sale--

Accounts Receivables 5,804.5‬ debit

credit card expense 305.5 debi

Sales Revenues 6,110 credit

--to record sale--

COGS 2,444 debit

Inventory 2,444 credit

--to record COGS of the previous sale--

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accounts receivables 683 credit

--to record write-off of McKee's account--

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account receivables 600 credit

--to record Morris payment in full--

Explanation:

We record considering the accounting principles:

debit = credit

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4 years ago

Companies benefit from employee balance because, compared to poorly balanced employees, well balanced employees __________. a. S

LiRa [457]

Well balanced employees can be more productive, they can be more stable and stay on their jobs longer, and if they like their jobs, they will be satisfied. Your answer would be D! The reason why is that the other answer choices cover what a satisfied employee would do.

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3 years ago

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lidiya [134]

Answer:

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Explanation:

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3 years ago