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guapka [62]
3 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]3 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..\%

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Answer:

Different personal and cultural traits can explain why even though we know that planning our activities help a lot, we rarely do it.

Japanese society is extremely structured and they plan everything. There incredible economic success is the result of that. Once I was travelling on the same tour bus as a group of Japanese tourists, and their tour guide requested them to give him their schedules since being on vacations meant not following a plan. The tourists got all anxious and nervous because they were going to do something different, which was scary for them.

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Answer:

Option (a) is correct.

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Explanation:

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4 years ago
Abby has a weekly budget of $75 to spend on fruit and vegetables. She decides to buy 2 pounds of organic fruit at a cost of $7.5
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Answer:

m=$10

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