1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
guapka [62]
2 years ago
8

First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accoun

ts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 10 years? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Ksju [112]2 years ago
8 0

Answer:

i =0.050713..     or

approximately \ 5.0713..\%

Explanation:

Assume an investment of $1.00

First Simple Bank:

Amount after 6 years = 1 + PRT

= 1 + 1(0.064)(10)  

= 1.64

 

Complex Bank:

1*(1+i)^{10}  = 1.64

Take 10th root of both sides

( (1+i)^ {10})*(\frac{1}{10} ) = 1.64^{\frac{1}{10}}

1+i = 1.050713..

i =0.050713..

or

approximately \ 5.0713..\%

You might be interested in
Consider the following totals: Revenues = $100,000; Operating costs and expenses = $45,000; Other revenues = $5,000; Income taxe
Sav [38]

Answer:

$55,000

Explanation:

The operating income of any entity can be calculated using the following formula:

Operating income=Net income+ income tax expense+ finance cost- other revenues

Net income in this question=$42,000

Income taxes=$18,000

finance cost=0

Other revenues=$5000

Operating income=$42,000+$18,000+0-$5000=$55,000

The operating income of any entity can also be calculated using the following formula:

Operating income=Revenues-operating costs

                             =$100,000-$45,000=$55,000

7 0
3 years ago
What is the formal agreement between two or more countries trade,peace and other matters called?
Arlecino [84]
Pretty sure its a treaty

5 0
3 years ago
Read 2 more answers
The production, purchase, and sale of goods in a world-wide market is known as the _____.
Akimi4 [234]
The answer you are looking for is

Global economy
8 0
3 years ago
Read 2 more answers
Assume banks are required to hold reserves equal to 20 percent of deposits. Instructions: Enter your responses as a whole number
stellarik [79]

Answer: $100

Explanation:

If the reserve requirement is 20% then the required reserves being held by the company is:

= Total deposits * reserve requirement

= 8,000 * 20%

= $1,600

The reserves held by the company of $1,700 comprise of both the required reserves and the excess reserves. The excess reserves will therefore be calculated as:

Excess reserves = Reserves - Required reserves

= 1,700 - 1,600

= $100

4 0
2 years ago
Once you find a job that sounds interesting, you should: Question 2 options: write a cover letter. immediately send a resume. fi
alexandr402 [8]
Research company and position
7 0
3 years ago
Read 2 more answers
Other questions:
  • Paige Company estimates that unit sales will be 10,300 in quarter 1, 12,600 in quarter 2, 14,600 in quarter 3, and 18,800 in qua
    9·2 answers
  • Stan read an ad in the newspaper which said that the jackpot for picking the six winners in the dog race on the last night of th
    15·1 answer
  • explain the problems that occur when government institutes wage and price controls, and explain the rationale for these controls
    14·1 answer
  • Brian, Kirk, and Jim established a partnership with equal capital contributions. However, Kirk provided an additional contributi
    8·1 answer
  • Closed the credit balance of $188,000 (from net income) in the retained earnings income summary account.
    6·1 answer
  • A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year-end, however, it has not begun
    12·1 answer
  • On October 4, 2018, Sheffield Corporation had credit sales transactions of $5400 from merchandise having cost $2800. The entries
    7·1 answer
  • Help please!!
    8·2 answers
  • My name is landon whats urs
    10·2 answers
  • A project has sales of $600,000, costs of $366,500, depreciation of $34,500, interest expense of $5,500, and a tax rate of 21 pe
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!