Answer: $40,000
Explanation:
The maximum amount of additional money that Carland National Bank can create will be calculated as the difference between the total reserve and the excess reserve. This will be:
= Total reserve – required reserve
where,
Total reserve = $60,000
Required reserve = 200000 × 10%
= 200,000 × 0.1
= $20,000
Therefore,
Excess reserve = $60000 - $20000
Excess reserve = $40000
Experiment A as in A you have a one in 6 chance of getting 30 whereas in experiment B you have a 1 in 30 chance of getting 30
Answer:
D. It cost you $85 to gas up your car this month. But last month it only cost you $50.
Explanation:
Answer:
A.An American put option is always worth less than the present value of the strike price
Explanation:
Put option refers to a stock market instrument which gives the holder an option to sell an asset at an agreed price on or before a particular date.
Each contract covers around 100 shares for stock options.
An American call option provides the holder with the right to purchase an asset, while a put option provides the holder an option to sell it.
A European option can be implemented only at the expiration date of the option and an American option can be implemented at any time before the expiration date.
An American put option is always worth less than the present value of the strike price.
So, option A. is correct
Answer:
The final value is $16,333.93
Explanation:
Giving the following information:
You deposit $200 a month for 5 years on an account with an annual interest rate of 12% compounded monthly.
First, we need to calculate the monthly interest rate:
Interest rate= 0.12/12= 0.01
Now, we can calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit= 200
i= 0.01
n= 5*12= 60
FV= {200*[(1.01^60)-1]}/ 0.01= $16,333.93
