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Bank of Baroda pays 4% simple interest on its savings account balances, whereas Canara Bank pays 4% interest compounded annually.
Problem 1: If you made a $12,000 deposit in each bank, how much money would you have in both bank accounts at the end of 8 years? (Show your work for each bank).
Problem 2: What interest rate (simple interest) would Bank of Baroda have to offer in order for a depositor to be indifferent to the returns offered by Canara Bank? Are there any other factors you should be considering when determining which bank you should deposit your hard earned money in?
Compute the direct materials, direct labor, and variable manufacturing overhead variances.Xavier Company produces a single product.
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