You can put your $100 in Bank A that pays 8% at the end of the year. You can also put your $100 in Bank B that pays 4% at the end of six months and then 4% again at the end of the year. You will keep your $100 and all interest in the bank. At the end of the year
A) the total will be the same at both banks.
B) the total at Bank A will be greater.
C) the total at Bank B will be greater.
D) the total could be larger at either bank.
C
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Suppose you earn annually compounding interest of 10% (per year) on an initial investment of $1,000. Rounded to the nearest 100, what will your balance in 10 years be?
A. $11,000 B. $5,200 C. $2,600 D. $2,000 E. $1,600 F. None of the above
Within the circular flow model, which of the following is not represented as a flow of funds into firms?
A) Foreign purchases of goods and services. B) Income payments. C) Consumption spending. D) Government purchases.
Troll Corporation sells dolls for $10.00 each in a market that is perfectly competitive. Increasing the number of workers from 100 to 101 would cause output to rise from 500 to 550 dolls per day. The marginal revenue product for the 101st worker is:
a. $10.00. b. $500. c. $5,000. d. $1,010.
When a firm in a monopolistically competitive market earns zero economic profit, its product price must equal marginal cost
a. True b. False Indicate whether the statement is true or false