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AURORKA [14]
3 years ago
13

Cindy invests $3000 in a bond trust that pays 8% interest compounded semiannually. Her friend, Jimmy, invests $3000 in a certifi

cate of deposit that pays 7.75% compounded monthly. Who has more money after 20 years, Cindy or Jimmy?
Business
1 answer:
Elanso [62]3 years ago
4 0

Answer:

Cindy has more amount than Jimmy.

Explanation:

Amount invested by Cindy P = $3000

Annual rate of interest = 8%

As the amount is compounded semiannually

So rate of interest =\frac{8}{2}=4% %

Time = 20 year

So time period n = 20×2 = 40

So amount own by Cindy A=P(1+\frac{r}{100})^n

A=3000(1+\frac{4}{100})^{40}=14403.06 $

Amount deposit by jimmy P = $3000

Annual rate of interest = 7.75 %

As the amount is compounded monthly

So rate of interest r=\frac{7.75}{12}=0.322 %

Time period = 20×12 = 240

So amount own by Jimmy A=P(1+\frac{r}{100})^n

A=3000(1+\frac{0.322}{100})^{240}=6503.650 $

From the calculation we can see that Cindy has more amount than Jimmy.

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Two metrics that are used to measure a company's financial performance are net income and cash flow. Accountants emphasize net i
lord [1]

Answer:

true

Explanation:

Finance people place greater weight on cash flows that net income.

Net income = total revenue - total cost

Cash flow is the movement of cash and cash equivalents in and out of an organisation.

Even though a company may be generating a positive net income, the positive net income may not be from sustainable sources, so it is for this reason that cash flows are examined.

also, cash flows are less subject to manipulation when compared with net income.

It is for these reasons that finance people place more importance on cash flows

6 0
3 years ago
When the opportunity cost of producing a good rises as you produce more of it, you experience:_______.
KiRa [710]

Answer:

e. increasing relative costs.

Explanation:

The law of increasing relative costs is a principle in economics which states that, the opportunity cost of producing a good would always increase as more of the product is being produced.

Hence, when the opportunity cost of producing a good rises as you produce more of it, you experience increasing relative costs because the factors of production (capital, labor and land) are now at a maximum level of output.

Furthermore, the opportunity cost, also known as the alternative forgone, can be defined as the value, gains or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

<em>Simply stated, it is the cost of not enjoying the benefits, gains or value associated with the alternative forgone or best alternative choice available.</em>

6 0
3 years ago
How does scarcity determine the economic value of an item?.
malfutka [58]

Scarcity has an impact on how people value goods and services, as well as how governments and private companies divide resources. The infinite wants of the consumers define the economic value of an item.

<h3>What factors influence the economic value of an item?</h3>

The relationship between supply and demand for a specific product determines relative scarcity.

The scarcity principle is an economic theory that explains the dynamic supply-and-demand price relationship.

The scarcity principle states that if an item has a low supply and a high demand, the price will rise to meet the predicted demand.

Check out the link below to know more about scarcity;

brainly.com/question/27445025

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7 0
2 years ago
Required reserves are defined as_________-. A. currency plus travelers checks plus demand deposits. B. the difference between le
cluponka [151]

Answer:

D. the value of reserves that a depository institution must hold in the form of vault cash or deposits at the Fed.

Explanation:

Required reserves is the value of reserves that a depository institution must hold in the form of vault cash or deposits at the Fed.

Excess reserve are deposits held at Federal Reserve district banks plus vault cash.

M1 is currency plus travelers checks plus demand deposits.

I hope my answer helps you.

5 0
3 years ago
Luxe Labels, LLC, exports specialty printing equipment for the custom labeling, flexible packaging, and carton industry. Thanks
puteri [66]

Answer:

The correct answer is department of commerce's bureau of industry and security.

Explanation:

Bureau of industry and security is an agency which is under the control of US department of commerce , whose main objective is advance the economic interest, foreign policy of US . It's activities include assisting other nations on export control and strategic trade issues, enforcing export control etc and because of them a company like Luxe labels is able to increase its sales in other countries.

6 0
3 years ago
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