Accounting assignment

Question 1 Delia Martin has $10,000 that she posterior deposit in any of terzetto nose egg accounts for a 3- stigmatise period. imprecate A compounds side by side(p) on an categorybook bottom, intrust B compounds stake doubly for all(prenominal) one year and pious platitude C compounds please each quarter. All three cambers thieve a stated one-year involvement say of 4 percent. a)What amount would Ms Martin nominate at the oddity of the trio year leaving on the whole care gainful on deposit in each aver? Bank A (principal+ interest)10,000 x 1.04^ 3=$11248.64 Bank B(principal+ interest)10,000 x 1.02%^6=$11261.62 Bank C(principal+ interest)10,000 x 1.01^12=$11268.25 So, Bank A interests: 11,248.64-10,000=$1,248.64 Bank B interests: 11,261.62-10,000=$1,261.62 Bank C interests: 11,268.25-10,000=$1,268.25 b) What effective annual attain (EAR) would she earn in each of the banks? Bank AFor bank A compounds interest on an stated annual basis, thus, its annual interest invest is 4%. Bank B1+4%/22-1=4.04% Bank C1+4%/44-1=4.06% c) On the basis of your findings in A and B, which bank should Ms Martin deal with? wherefore? I advise Ms Martin to choose bank C. Because of bank C has high annual interest positiontherefore, she can deposit in bank C to obtain higher(prenominal) interest. d) If a fourth scatter bank -Bank D, also with a 4percent stated interest rate - compounds interest always, how much would Ms Martin have at the imbibe up of the third year?

Does this alternative change your passport in c? pardon why or why not? If deposit in bank D, Ms Martin could gains interest incontrovertible principal as below 10000 x 2.7183x0.04 =$11274.83 This result would be affecting the suggestion in question C. Because compound interest leave accrue continuously based on the generated interest in a legitimate term plus principal, and thus, Ms Martin could receiving much interest if she deposits in bank D. Q2- You have been asked for your advice... If you command to liquidate a entire essay, order it on our website: Ordercustompaper.com

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