Business, 02.03.2020 18:11 bluejay62

Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates for below questions:

Katherine deposited $500 in a savings account at her bank. Her account will earn an annual simple interest rate of 6.6%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years?

a. $929.00
b. $429.00
c. $535.18
d. $1,147.66

If Katherine's savings account earns 6.6% compounded annually, all other things being equal, how much money will Katherine have in her account in 13 years?

a. $929.00
b. $533.00
c. $1,147.66
d. $984.69

Suppose Katherine had deposited $500 in a savings account at a second bank at the same time. The second bank also pays a nominal interest rate of 6.6% but with quarterly compounding. Keeping everything else constant, how much money will Katherine have in her account at this bank in 13 years?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 06:30

"in my opinion, we ought to stop making our own drums and accept that outside supplier's offer," said wim niewindt, managing director of antilles refining, n.v., of aruba. "at a price of $21 per drum, we would be paying $4.70 less than it costs us to manufacture the drums in our own plant. since we use 70,000 drums a year, that would be an annual cost savings of $329,000." antilles refining's current cost to manufacture one drum is given below (based on 70,000 drums per year):

Answers: 1

Answer

Business, 22.06.2019 06:40

Self-interest achieve society’s economic goals because producers know which goods consumers want the most. as consumers and producers exercise their freedom to act in their own self-interest, markets will produce the desired goods at the lowest possible cost. consumers and producers both operate based on society’s economic goals. consumers know which goods can be produced at the lowest cost. there is a wide variety of desired goods and services in a market system because producers determine what to produce. consumers change their minds frequently. there is always a need to produce something new and improved. individual wants are diverse. what is produced is ultimately determined by consumers, because if the goods offered are not what consumers want, consumers will not buy them. producers, because they are driven by profits. producers, because they determine what to produce. consumers, because they participate in marketing surveys.

Answers: 2

Answer

Business, 22.06.2019 14:30

United continental holdings, inc., (ual), operates passenger service throughout the world. the following data (in millions) were adapted from a recent financial statement of united. sales (revenue) $38,901 average property, plant, and equipment 17,219 average intangible assets 8,883 1. compute the asset turnover. round your answer to two decimal places.

Answers: 2

Answer

Business, 22.06.2019 18:50

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?

Answers: 3

Answer

You know the right answer?

Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed o...

Questions