If you were to invest $10,000 for two years and the interest rates for each of those years are 4.5% and 4.65% respectively, how much interest would you earn from the end of year one until the end of year two? Assume interest compounds annually.
What will be an ideal response?
Y1 = $10,000(1 + 0.045) = $10,450.00
Y2 = $10,000(1 + 0.045)2 = $10,935.92
Interest = $10,935.92 - $10,450.00 = $485.92
You might also like to view...
Studies show that the income elasticity of demand for wine is approximately five. What does this mean?
A) A 1 percent increase in income leads to a 5 percent increase in wine consumption. B) A 1 percent decrease in the price of wine leads to a 5 percent increase in wine consumption. C) A 5 percent increase in income leads to a 1 percent increase in wine consumption. D) Wine is a relatively elastic good.
Provide a simple definition of the price elasticity of demand and explain why knowing the price elasticity for her product is useful to the firm's manager
What will be an ideal response?
Brand names and packaging are forms of product differentiation under monopolistic competition.
Answer the following statement true (T) or false (F)
Sue’s Shoe Shop is having a sale on shoes. The first pair of shoes is full price, the second is 25% off, and the third is 50% off. Describe how this sale relates to individual demand and marginal utility
Please provide the best answer for the statement.