User Account

All Pages

Receiving interest at the rate

Assignment Help Macroeconomics
Reference no: EM131081748

Ellie uses the products method to check the interest on her savings account. She calculates that she is receiving interest at the rate of approximately 0.015% per day.

Calculate:

1. the annual rate of simple interest paid to Ellie

2. the interest earned on a balance of £12,000:

(i) for two days

(ii) for two years.

From 1 January 2003 to 31 December 2012, the value of Ellie's house increased from £200,000 to £320,000.

(c) Calculate the rate of increase per annum based on simple interest.

Ellie believes that the increase is approximately 4.8% per annum based on compound interest.

(d) Provide a calculation to show if Ellie is correct.

(e) State whether the true rate of compound interest is more than or less than 4.8% per annum.

Reference no: EM131081748

Questions Cloud

Sample issue-specific security policy for organization : Using the framework presented in this chapter, draft a sample issue-specific security policy for an organization. At the beginning of your document, describe the organization for which you are creating the policy and then complete the policy using..
Depreciated over four years using the straight-line method : RightPrice Investors, Inc., is considering the purchase of a $372,000 computer with an economic life of four years. The computer will be fully depreciated over four years using the straight-line method. The market value of the computer will be $72,00..
What are the current carrying costs and order costs : Louise Manufacturing uses 1,700 switch assemblies per week and then reorders another 1,700. The relevant carrying cost per switch assembly is $6.00, and the fixed order cost is $850. What are the current carrying costs? (Do not round intermediate cal..
What is average return for the year : Chris had $80,000 in investments at the beginning of the year that consisted of a diversified portfolio of stocks (30 percent); bonds (50 percent) and cash equivalents (20 percent). His returns over the past 12 months were 6 percent on stocks, 3 perc..
Receiving interest at the rate : Ellie uses the products method to check the interest on her savings account. She calculates that she is receiving interest at the rate of approximately 0.015% per day.
What was/were the reason for the court decision : What law(s) was/were involved in this case? What was/were the plaintiff's complaint(s)? What was/were the defendant(s) argument(s)?
Project to improve its production efficiency : Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $520,000 is estimated to result in $215,000 in annual pretax cost savings. The press falls in the MACRS five-year class, and i..
Make a swot analysis of the local lnternational policy : MGT307 INTERNATIONAL HUMAN RESOURCE MANAGEMENT RESEARCH ASSIGNMENT AND PRESENTATION. Make a SWOT analysis of the Local lnternational policy using information from the case study
Depreciated straight-line to zero book value over the life : Thornley Machines is considering a 3-year project with an initial cost of $600,000. The project will not directly produce any sales but will reduce operating costs by $310,000 a year. The equipment is depreciated straight-line to a zero book value ov..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Measures in terms of private housing

If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measures in terms of private housing? (assume a defense budget of $600 billion)?

  Elasticity of demand among the two brands

Illustrate what is the cross elasticity of demand among the two brands of widgets.

  Why do we have trade barriers

Tariff and non tariff barriers exist in all nations, either independently or as part of a multicountry integrated economy. Present arguments that defend the use of trade barriers and arguments against the use of trade barriers.

  Determining efficient level of labour

A medium sized bakery has just opened in Slovakia. A loaf of bread is currently selling for fourteen koruna over and above the cost of intermediate goods

  Explain how do markets determine the payments

Explain how do markets determine the payments to the various factors of production. How do markets determine the distribution of income.

  Scenario one in the early part of the last decade there was

scenario one in the early part of the last decade there was an overproduction of coffee. the price dropped so low that

  Determine the real rate of return

Nico Nelson, management trainee at a large New York based bank is trying to determine the real rate of return expected by investors. He notes that the 3-month T-bill currently yields 3%,

  Explain if you were the production manager at bcag

Explain if you were the production manager at BCAG, how would you justify the long-term nature of the contact with Thyssen Inc..

  Taxis in many cities around the world the taxi-cab industry

taxis in many cities around the world the taxi-cab industry is heavily regulated. analyze the three different regimes

  Explain how supply and demand analysis is used to describe

Explain how supply and demand analysis is used to describe the extent to which taxes can be passed on to others.

  Accounts receivable portfolio

Two records are to be randomly selected one after the other from an accounts receivable portfolio. The selected records are then examined to see whether they contain any error.

  What happens to market equilibrium quantity

What happens to Market Equilibrium Price (MEP) if Supply decreases as Demand increases?c. What happens to Market Equilibrium Quantity (MEQ) after there has been an increase in Supply followed by a decrease in Demand which is followed by another in..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd