C. Savings account B because it has more compounding periods per year.
Step-by-step explanation:
Step 1:
Savings account A has an APR of 5% which compounds interest semiannually. This means that savings account A compounds twice in a year. If account A compounds 5% a time, it would compound 5(2) = 10% in a single year.
Step 2:
Savings account B also has an APR of 5% which compounds interest quarterly. This means that savings account B compounds four times in a year. If account B compounds 5% a time, it would compound 5(4) = 20% in a single year.
Step 3:
Savings account A gets an interest of 5% a year while savings account B gets an interest of 10% so account B offers a higher APR because of more compoundings in a year.
I need more info on this ? to answer.
Given:
Proceeds = $14,500
discount rate = 11%
term = 150 days
Simple discount note:
Discount = Maturity Value * discount rate * term
Proceeds from simple discount note:
proceeds = Maturity Value - discount
We will have to work back:
Discount = Maturity Value * 0.11 * 150/360
Discount = Maturity Value * 0.045833
Discount is 0.045833 of the Maturity Value. The proceeds is net of the Discount so we simple deduct 0.045833 from 1 to get the portion of the proceeds as compared to the Maturity Value.
14,500 / (1-0.045833) = 14,500 / 0.95416 = 15,196.61
My figure is nearest to choice A. $15,196.51
