Decide whether the statement makes sense. Explain your reasoning.Sue opened a savings account and deposited $10,000. On the same day Pat opened an account at a different bank and also deposited $10,000. Both accounts had the same APR and both were paying compound interest but after two years Sue had more in her account than Pat did. Neither person made any additional deposits or withdrawals from their account during those two years.
What will be an ideal response?
Yes, this is possible. Sue's bank must be compounding the interest more frequently which means that she gets a higher annual percentage yield than Pat.
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Solve the problem.In a recent year, the total receipts for the US federal government were $2154 billion. The total outlays were $2472 billion. The deficit was $318 billion. What would the deficit have been, if there had been a 2% decrease in total receipts?
A. $361 billion B. $369 billion C. $355 billion D. $365 billion
For the given principal, interest rate, and time period, determine the amount of interest that would be earned in an account paying simple interest. Also determine the amount of interest that would be earned in an account paying compound interest with interest compounded annually. Determine how much more interest would be earned in the account paying compound interest. Round to the nearest cent.Principal: $6865 Rate: 2% Years: 17
A. $4944.46 B. $7278.56 C. $413.56 D. $362.37
Establish the identity.csc 
= sec u
What will be an ideal response?
On August 1, 2016, Jason purchased machinery from Morgan for expanding its production operation. Morgan has given Jason three options for payment: a.$300,000 in cash nowb.$150,000 down payment now and $50,000 per year for the next ten years beginning August 1, 2017c.$100,000 now and $100,000 per year for five years beginning August 1, 2017? Required:Determine which of the above payment plans has the lowest present value. Clearly label all of your work. The effective annual interest rate is expected to be 12% during this period.
What will be an ideal response?