Based on the data that you have gathered, write a statement about the effect of higher...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Based on the data that you have gathered, write a statement about the effect of higher interest rates and the effect of the number of compounding periods. Do you think that the interest rate or the compounding period has the greatest impact? P (principal) |r (annual rate) $1000 $1000 $1000 $1000 5% 5% 5% 5% How often m (number of compounded compounding periods) Annually Quarterly Monthly Daily 1 4 12 365 t (number of years) 1 year 1 year 1 year 1 year A (amount) Based on the data that you have gathered, write a statement about the effect of higher interest rates and the effect of the number of compounding periods. Do you think that the interest rate or the compounding period has the greatest impact? P (principal) |r (annual rate) $1000 $1000 $1000 $1000 5% 5% 5% 5% How often m (number of compounded compounding periods) Annually Quarterly Monthly Daily 1 4 12 365 t (number of years) 1 year 1 year 1 year 1 year A (amount)
Expert Answer:
Answer rating: 100% (QA)
Answer Based on the data provided we can examine the effect of higher interest rates and the effect of the number of compounding periods on the growth ... View the full answer
Related Book For
Understanding Business Ethics
ISBN: 9781506303239
3rd Edition
Authors: Peter A. Stanwick, Sarah D. Stanwick
Posted Date:
Students also viewed these finance questions
-
1. In the classical model, it is thought that the long-run: A. and short-run aggregate supply curves are both upward sloping. B. aggregate supply curve is vertical and the short-run aggregate supply...
-
At its meeting today, the Board decided to increase the cash rate target by 25?basis points to 4.10?per?cent. It also increased the interest rate paid on Exchange Settlement balances by 25?basis...
-
Because the entries in the present value table (Table 13 - 3) are reciprocals of the corresponding entries in the future value table (Table 13 - 1), how can Table 13 - 3 be used to find the future...
-
Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $23,400. At acquisition Perfect assumed that the car would have an estimated life of...
-
The number of people visiting a shop each working hour for the past week has been recorded as follows: What do these results show? Are they typical of the distribution of customer numbers at other...
-
Define patterns, methodologies, and recipes and give an example for each.
-
A member of the city commission insists that the citys internal service fund prepare and submit a budget for commission approval. The commissioner argues that it is only through the budget that the...
-
What might be one cost and one benefit of Keynesian economic policies?
-
Following is partial information for the income statement of Timber Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost...
-
BNS Company has been expanding rapidly. Its last two acquisitions were Best Choice Limited and Designers Limited. Both acquisitions are firms engaged in production and distributive of famous lines of...
-
Considering the life cycle of a glass of orange juice from a Florida orange grove, name five raw materials that need to be acquired and how that material is used to make a glass of orange juice...
-
What does PCAOB stand for? Who oversees the PCAOB? 3. What audit firms must register with the PACOB? 4. The PCAOB has the authority to set general standards governing what 3 things? 5. If your CPA...
-
investors are interested in assessing a company's ability to generate net cash inflows, as well as its ability to protect and enhance capital investments. Explain how each of the accrual and cash...
-
Your client owns a condominium that they purchased for $460,000 in 2009. It is assessed for real estate tax purposes at $506,000, and its replacement value for insurance purposes in now $580,000. The...
-
Procter and Gamble company and fiscal year 2023 1.) Has your company made any share repurchases for the year? 2.) How do they account for share repurchases as (a) treasury stock or (b) retired shares?
-
The following data were obtained for the reaction 2 ICl ( g ) + H 2 ( g ) I 2 ( g ) + 2 HCl ( g ) Experiment [ICl] 0 (M) [H 2 ] 0 (M) Initial Rate (M/s) 1 0.0015 0.0015 3.7 x 10 -7 2 0.0030 0.0015...
-
List four items of financial information you consider to be important to a manager of a business that has been operating for a year.
-
Why are poverty and hunger seen as business issues?
-
Do corporations have a responsibility to help solve hunger and poverty around the world? Explain.
-
Based in Ventura, California, Patagonia was founded by Yvon Chouinard. As a 14-year-old boy, he started rock climbing in 1953 as a member of the Southern California Falconry Club. While searching for...
-
Using tha data file usmacro, estimate the ARDL \((2,1)\) model Your estimates should agree with the results given in equation (9.42). Use these estimates to verify the forecast results given in Table...
-
Using the data file usmacro, estimate the \(\operatorname{AR}(1)\) model \(G_{t}=\alpha+\phi G_{t-1}+v_{t}\). From these estimates and those obtained in Exercise 9.16, use the results from Exercise...
-
Consider the \(\operatorname{ARDL}(p, q)\) equation and the data in the file usmacro. For \(p=2\) and \(q=1\), results from the LM test for serially correlated errors were reported in Table 9.6 for...
Study smarter with the SolutionInn App