Answer:
A) a Microsoft employee who created the latest tools for the Windows Operating System
Answer:
The correct answer is letter "C": The effective annual rate equals the annual percentage rate when interest is compounded annually.
Explanation:
Interest Rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardsticks for measuring how much return lenders will get.
The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding. Using the effective annual interest rate helps us understand how differently a loan or investment performs if it compounds annually, semiannually, monthly, or in any other time frame. If compounded annually, the effective interest rate equals the annual percentage rate.
Answer:
Explanation:
Do you have choices for this question?
Answer:
The c orrect answer is A.
Explanation:
Giving the following information:
Annual deposit= 1,410
Annual interest rate= 5%
Number of years= 8 years
To calculate the future value of her investment, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,410*[(1.05^8)-1]}/ 0.05
FV= $13,464.24