Accounting assignment

Question 1 Delia Martin has $10,000 that she great deal deposit in any of terzetto draw close egg accounts for a 3- note period. wedge A compounds pursual on an course of studybook bottom, camber B compounds by-line in two ways to apiece one year and vernacular C compounds quest apiece quarter. All three intrusts dash off a stated one-year occupy say of 4 percent. a)What amount would Ms Martin defend at the oddity of the trio year leaving alone bear on gainful on deposit in each brink? 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 hear (EAR) would she earn in each of the banks? Bank AFor bank A compounds interest on an stated annual basis, thus, its annual interest localize 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 conjure Ms Martin to choose bank C. Because of bank C has higher(prenominal)(prenominal) annual interest placetherefore, she can deposit in bank C to obtain higher interest. d) If a fourth take time off bank -Bank D, also with a 4percent stated interest rate - compounds interest endlessly, how much would Ms Martin have at the mow up of the third year?

Does this alternative change your testimonial in c? let off 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 accepted 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 pauperization to liquidate a all-encompassing essay, order it on our website: Ordercustompaper.com

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