Determine annual effective yield rate on entire investment

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Reference no: EM131348424

1. Ryan invest $500 into a bank account at the beginning of each year for 25 years. The account pays out interest at the end of every year at an annual effective interest rate of 6%. The interest is reinvested at an annual rate of 4%. Determine the annual effective yield rate on the entire investment over the 25-year period.

A) 5.0%

B) 5.3%

C) 5.6%

D) 5.9%

E) 6.2%

2. ______ is a measure of operating leverage. It is the different between a company's total sales revenue and variable costs.

a. Contribution margin analysis

b. incremental analysis

c. margin of safety analysis

d. regression analysis

Reference no: EM131348424

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