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allsm [11]
3 years ago
14

If you have a choice to earn simple interest on $10,000 for three years at 8% or annually compounded interest at 7% for three ye

ars which one will pay more and by how much approximately?
a. Simple interest by $50.00
b. Compound interest by $22.97
c. Compound interest by $150.75
d. Compound interest by $150.00
e. None of the above.
Business
1 answer:
Zielflug [23.3K]3 years ago
7 0

Answer:

e. non of the above

Explanation:

we first find the simple interest

= p * r * t

= 10000*8%*3

= 2400

the future value

= 2400 + 10000

= 12400

we find the compound interest

= 10000*(1+r)^n

= 10000(1+7%)³

= 10000*1.225043

= 12250.43

we can see that it pays more at 12400 compared to compound interest of  12250.43

the difference = 12400 - 12250.43

= 149.57

therefore the answer is e

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7 0
3 years ago
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping costs totaled $30,000. Foundat
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Answer:

d. $489,500

Explanation:

The capitalized cost will include all the costs incurred by Holiday laboratories to readily make the asset for use.

Therefore,

Capitalized cost = High speed industrial centrifuge + Shipping cost + Foundation cost + Equipment cost + Labor and testing cost + Material cost

= $440,000 + $30,000 + $8,600 + $3,000 + $5,300 + $2,600

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3 years ago
Money aggregates
Allushta [10]

Answer:

Explanation:

* M1 = currency in circulation + checking deposits

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3 0
3 years ago
The company's wacc is 10. 5%. what is the irr of the better project? (hint: the better project may or may not be the one with th
Simora [160]

The better Project is Project S having a NPV of $17.968 and IRR of 12.10 %

IRR:

  • An approach to capital budgeting that is used to assess the profitability of a project is the discounted payback time. Internal rate of return is one of these capital planning strategies (IRR).
  • This rate of return corresponds to the point at which a project's net present value equals zero. Since it does not account for any outside forces, such as inflation, they call it internal.

The calculator's capabilities will be utilized to determine the IRR,

Project S

  • CF0 = (1,000)
  • CF1 = 882.62 & F01 = 1
  • CF2 = 250 & F02 = 1
  • CF3 = 15 & F03 = 1
  • CF4 = 5 & F04 = 1
  • I = 10.5%
  • [NPV] [CPT]
  • The NPV is $17.968
  • [IRR] [CPT]
  • The IRR will come as 12.10%
  • Project L
  • CF0 = (1,000)
  • CF1 = 0 & F01 = 1
  • CF2 = 260 & F02 = 1
  • CF3 = 420 & F03 = 1
  • CF4 = 732.87 & F04 = 1
  • I = 10.5%
  • [NPV] [CPT]
  • The NPV is $15.78
  • [IRR] [CPT]
  • The IRR will come as 11.03%
  • The better Project is Project S having a NPV of $17.968 and IRR of 12.10%

Learn more about IRR here brainly.com/question/7920964

#SPJ4

7 0
2 years ago
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