In this example, Sarah is actually paying interest, which is compounded monthly at the rate of 7.496%. So, the correct option that matches the above statement is B.
Compound interest can be easily calculated by the way of putting the values given in the formula for compound interest, which is compounded on a monthly basis.
<h3>Calculation of Compound Interest</h3>
- Compound interest is best defined with the terms as interest given on accrued interest or the accumulated interest in addition to the interest on the principal amount.
- In the example, the amount of loan is not given. Hence, we are assuming that Sarah took a loan of $10000. It is also not provided that the tenure of the loan taken by Sarah, so we are assuming the time period as one year.
- The formula to calculate Compound interest is as given below,
- In the formula above <em>r </em>is denoted as rate of interest,<em> </em><em>n </em>is the number of times such interest is paid throughout the tenure and<em> t </em>is the time. So putting the assumed values in the formula, we get,
- So the actual interest actually paid will be $749.58 for the period of 1 year from such calculation.
- If we calculate such interest paid, the effective rate of interest paid by Sarah will account to 7.496% (rounded off to three decimal places).
Hence, we can say that Sarah will be actually paying the interest at the rate of 7.496% and that the correct option is B.
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brainly.com/question/25857212
Answer:
B. Decrease
Explanation:
Base on the scenario been described in the question, when the P.HD in economics increase, it will in turn make the equilibrium wage to increase. The labor market, sometimes called as the job market, refers to the demand and supply for labor in which employers provide the demand and employees the supply
Answer:
The contrast in GDP per capital growth relative to productivity growth between the two countries and the effect of compounding decrease
Explanation:
Solution
The GDP growth rate relative productive growth was one of the prime factors of total growth during the late 20th century.
The more technological investment, the higher was the productivity together with compounding could have played a vital role.
By compounding it refers to the reinvestment with the aid of established generated revenue. this implies that capital is used to its fullest thus increasing productivity. thus maybe the country with Low GDP per capital might have experienced a decrease, then compounding further abetting a downturn in the GDP growth rate.
Answer:
A statement savings account can be drawn upon any time the customer requires cash (on demand). The customer can also deposit cash into the account at any time. The interest rate payable on the deposits is not fixed but fluctuates. A statement savings account is opened for a life-time and there is no fixed time for the deposits to stay.
The duration for which the Certificates of Deposit will be saved is fixed. A customer is not freely allowed to withdraw and deposit into the account. The customer withdraws at maturity. The interest rate is fixed and cannot be altered.
1. Both
2. Statement Savings Account
3. Certificate of Deposit
4. Certificate of Deposit
5. Statement Savings Account
Explanation:
A statement (or passbook) savings account is an ordinary savings account opened in a bank for depositing and withdrawing money regularly as needed by the customer.
A Certificate of Deposit (CD) is a fixed-term duration savings account, which is opened in a bank to enable the customer deposit some fixed amount that will not be withdrawn regularly by the customer until the maturity date. CDs are called time deposits because of the fixed time the deposits must stay.
