Answer:
Common-size percent for cash = 5.73 % (Approx.)
Step-by-step explanation:
Given:
Total cash = $26,200
Total assets = $457,000
Total equity = $156,630
Find:
Common-size percent for cash
Computation:
Common-size percent for cash = [Total cash/Total assets]100
Common-size percent for cash = [26,200/457,000]100
Common-size percent for cash = 5.73 % (Approx.)
Melanie:
Amount after 5 years = 4000(1 + 0.04)⁵ = $4867
Gina:
Amount after 5 years = 4000 + 5(0.045 x 4000) = $4900
Answer: Gina has the greater balance and her balance is $4900.
