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4 years ago

What is one advantage of keeping your money in a savings account

1 answer:

4 0

The advantage of keeping your money in a savings account is that you can withdraw money whenever you want from your account.

<u>Explanation:</u>

Unlike the long term investments which are withdrawn only upon maturity.

The initial investment is also very low which is depending on the type of savings account., as compared to the long term investment.

People who need to frequently deposit or withdraw amount in their bank accounts prefers savings account.

It also deals with small amount withdrawn or deposit.

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If real gross domestic product (GDP) grew by 2 percent and the inflation rate was 2 percent, then nominal GDP grew by

ohaa [14]

Answer:

Explanation:

If the real gross domestic product for the year grew by 2%

The inflation rate also grew by 2%

Then nominal GDP rate can be calculated as follows

= Real GDP + inflation rate

= 2% + 2%

= 4%

Hence the nominal gross domestic product grew by 4%

6 0

3 years ago

n December , General Electric (GE) had a book value of equity of billion, billion shares outstanding, and a market price of

Gennadij [26K]

Answer:

a. GE's market capitalization = 276.60 billion; and GE's market-to-book ratio = 2.85.

b. GE's book debt-equity ratio = 2.08; and GE's market debt-equity ratio = 0.73

c. GE's enterprise value = $374.26 billion

Explanation:

Note: This question is not complete as all its data are omitted. The complete question is therefore provided before answering the question as follows:

In December 2015, General Electric (GE) had a book value of equity of $97.1 billion, 9.2 billion shares outstanding, and a market price of $30.06 per share. GE also had cash of $103.9 billion, and total debt of $201.7 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value?

The explanation to the answer is now provided as follows:

a. What was GE's market capitalization? What was GE's market-to-book ratio?

Calculation of GE's market capitalization

Market capitalization = Number of shares outstanding * market price per share = 9.2 billion * $30.06 = 276.60 billion

Calculation of GE's market-to-book ratio

Market-to-book ratio = Market capitalization / Book value of equity = $276.552 billion / $97.1 billion = 2.85

b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?

Calculation of GE's book debt-equity ratio?

Book debt-equity ratio = Total debt / Book value of equity = $201.7 billion / $97.1 billion = 2.08

Calculation of GE's market debt-equity ratio

Market debt equity ratio = Total debt / Market capitalization = $201.7 billion / $276.46 billion = 0.73

c. What was GE's enterprise value?

Enterprise value = Market capitalization + Total debt - cash = $276.46 billion + $201.7 billion - $103.9 billion = $374.26 billion

5 0

3 years ago

Fifteen families live in Willow Canyon. Although several water wells have been drilled, none hasproduced water. The residents ta

vladimir1956 [14]

Answer:

Initial Investment, P = $100, 000

Recurring Cost, A=$6200

(a) Calculate the internal rate of return for infinite life,

A= P(i)

6200=100000(i)

i = 6200/100000

i =6.2%

(b) Calculate the internal rate of return for 100 years,

P = A(P/A, i, 100)

100000 = 6200 (P/A, i, 100)

(P/A, i, 100) = 16.129

For i = 6%

(P/A,6%,100) = 16.618

For i = 7%

(P/A ,7%,100) = 14.269

i = [(6 - 7) / (16.618 - 14.269)] (16.129 - 16.618) +6

i = 6.2%

Thus, IRR = 6.2%

(c) Calculate the internal rate of return for 50 years,

P = A(P/A ,i , 50)

100000 = 6200 (P/A, i, 50)

(P/A, i, 50) = 16.129

For i = 6%

(P/A, 6%, 100) = 15.762

For i = 5%

(P/A , 5%, 100) = 18.256

i = [(5 - 6) / (18.256 - 15.762)] (16.129-15.762) + 6

i = 5.853%

Thus, IRR = 5.853%

(d)

In all cases internal rate of return is greater than 4%, which is minimum interest rate that one can earn. So they should consider to install the pipeline.

6 0

3 years ago

A tall organizational structure is usually more responsive to customer demands.

Mazyrski [523]

The primary advantage of a tall organizational structure is that it maintains a strong chain of command from the top level of the company all the way down to the employees.

8 0

2 years ago

If a schedule c taxpayer does not bring the tax professional documentation to prove income

nekit [7.7K]

If a schedule c taxpayer does not bring the documents to prove the income, one cannot claim the Earned Income Tax Credit. Also the return cannot be prepared by the tax professional however one can make a form 1099 MISC to indicate their own income and lastly they should give other proofs that the income is accurate so that the paper for return can have the sign needed.

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4 0

4 years ago