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
Sav [38]
3 years ago
14

Bank "A" is offering 2% interest and a $100 debit card on a newly opened savings account with a minimum balance of $1,000 for on

e year. Bank "B" is offering 5% interest and a $50 debit card on a newly opened savings account with a minimum balance of $1,000 for one year. Assuming you deposit $1,000, which has the better return (interest plus card value) FOR THE FIRST MONTH?
Business
2 answers:
charle [14.2K]3 years ago
4 0

Answer:

Explanation:

On the offer of Bank A , the total return ( annual ) for deposit holder

= 2%of 1000 + 100 = 120 dollar

On the offer of Bank B , the total return ( annual ) for deposit holder

= 5%of 1000 + 50 = 100 dollar

Hence the offer of bank A is better in terms of return.

lions [1.4K]3 years ago
4 0

Answer:

The Answer is Bank A

Explanation:

Bank A is offering =(Card Value+ interest on saving account i.e $100+1000*2%/12)=$101.667

Bank  B is offering=(Card Value+ interest on saving account  i.e $50+1000*5%/12)=$54.1667

So the Answer is Bank A because the debit  card value of Bank A is greater than Bank B. Therefore  overall benefit and return is better of Bank A.

You might be interested in
what is the current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a yt
Leviafan [203]

The current prices of a $1,000 par bond maturing in 12 years with a coupon rate of 14%, paid semiannually, that has a ytm of 13% is $ 130000 .

The entire return anticipated on a bond if it is kept to maturity is known as yield to maturity (YTM). Although it is expressed as an annual rate, yield to maturity is regarded as a long-term bond yield. It is, therefore, the internal rate of return (IRR) of a bond investment assuming the investor retains the bond to maturity, with all scheduled payments made and reinvested at the same pace.

Yield to maturity is comparable to current yield, which calculates how much money would be made by purchasing and keeping a bond for a year by dividing annual cash inflows from that bond by its market price. The value of a coupon paying bond is calculated by discounting the future payments (coupon and principal) by an appropriate discount rate.

The bond characteristics are summarized below:

Par Value =     $1,000

Yield        =      13% annual (13/2 =6.5% semi-annual)

Coupon   =      12% with semi-annual payment of $60

Maturity   =      1 year

The value of the bond is calculated as follows:

$1000 of 13%  = (13/1000)* 100 =130

Calculate PMT = FV*Coupon Rate

Current price = $1000*130

Price = $ 130000

Learn more about yield to maturity visit: brainly.com/question/28033398

#SPJ4

8 0
9 months ago
Jupiter Explorers has $5,600 in sales. The profit margin is 3 percent. There are 4,000 shares of stock outstanding, with a price
Irina18 [472]

Answer:

Price-earning ratio is 28.57 .

Explanation:

Price earning is a ratio widely used by common stock holder in stock market. The ratio is used to measures share price in relation to earning per share. The ratio tells us years require to recover amount spend on acquisition of share.

Detail calculation is given below.

Sales                      $ 5,600  -A

Net profit               $    168   -B

EPS                         $ 0.042 -B/4000

Price-earning ratio = 1.2/EPS  = 28.57  

6 0
2 years ago
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the
vesna_86 [32]

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the  present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

8 0
3 years ago
Brief Exercise 22-07 Sunland Company classifies its selling and administrative expense budget into variable and fixed components
prohojiy [21]

Answer:

So whats the question???

Explanation:

7 0
3 years ago
Select the incorrect statement regarding relevant costs and revenues. Group of answer choices Sunk costs are never relevant for
raketka [301]

Answer:

The incorrect statement regarding relevant costs and revenues:

To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.

Explanation:

For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time.  It must also differ between the options available for decision making.  A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided.  This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.

6 0
2 years ago
Other questions:
  • The primary goal of social business is to deepen interactions with employees and customers. True False
    9·1 answer
  • i don't have an assignment rather a life question, i'll be back here though. I'm 17 and i'm going to be applying for college in
    15·1 answer
  • Why are social security and medicare considered highly efficient programs? multiple choice they are administered at the local le
    6·1 answer
  • Suppose Susan owns a business that operates in a market characterized by monopolistic competition. Susan's profit-maximizing pri
    9·2 answers
  • Rendezvous Cafe's suit against Sanitary Waste Services, Inc., the court issues a judgment in Rendezvous's favor. The judgment ca
    12·1 answer
  • The crusades, fought on the basis of religion occurred in the continent of
    12·1 answer
  • When determining the account balance for a particular account (ex. Accounts Receivable) in order to prepare a trial balance, the
    10·1 answer
  • Phyllis works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishl
    5·1 answer
  • A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the inte
    10·1 answer
  • Suppose that a small town has seven burger shops whose respective shares of the local hamburger market are (as percentages of al
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!