BUSINESS COLLEGE

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a deposit of $12,500 in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years

Answers

Answer 1
Answer:

Answer:

$8000

= $10,636.63

Explanation:

Simple interest = P x R x T

P = amount

R = interest rate

T = time

= $12,500 × 0.08 x 8 = $8000

For compound interest:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

$12500(1.08)^8 = $23,136.63

Interest = $23,136.63 - $12,500 = $10,636.63

I hope my answer helps you

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Answers

Answer:

B. Fall to Zero

Explanation:

In a perfectly competitive market, product cost are all relatively the same. If a firm decides to raise its price on a product it's demanded quantity becomes relatively nonexistent due to the other competitors whos prices have either remained the same or even dropped in price.

Iris collected $150,000 on her deceased husband's life insurance policy. The policy was purchased by the husband's employer under a group policy. Iris's husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer. She elected to collect the policy in 10 equal annual payments of $18,000 each.a. None of the payments must be included in Iris's gross income.b. The amount she receives in the first year is a nontaxable return of capital.c. For each $18,000 payment that Iris receives, she can exclude $500 ($5,000/$180,000 × $18,000) from gross income.d. For each $18,000 payment that Iris receives, she can exclude $15,000 ($150,000/$180,000 × $18,000) from gross income.e. None of these.

Answers

Answer:

d. For each $18,000 payment that Iris receives, she can exclude $15,000 ($150,000/$180,000 × $18,000) from gross income.

Explanation:

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The recovery of capital of each annuity payment is $15.000 [(150.000/180.000]. Which will be excluded.

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b. arranging the information chronologically according to the date the profits were generated at each location
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Answers

Answer:

c. creating sections of the report that represent each geographic region

Explanation:

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Answers

Answer:

Answer is explained in the attachment.

Explanation:

Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made no other deposits or withdrawals. What annual interest rate (compounded annually) has the account earned?

Answers

Answer:

2.64%

Explanation:

A = P(1 + r)^n

A = $12,000

P = $10,000

n = 7 years

12,000 = 10,000(1 + r)^7

(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

1 + r = (1.2)^1/7

I + r = 1.0264

r = 1.0264 - 1 = 0.0264

r = 0.0264 × 100 = 2.64%

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Answers

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