Describe the compounding scheme used by the bank

Assignment Help Econometrics
Reference no: EM13208755

A local bank advertised the following information: interest 6.89% - effective annual yield 7.128% . no mention was made of the interest period on the advertisement. Can you figure out the compounding scheme used by the bank?

Reference no: EM13208755

Questions Cloud

Explain the disadvantages of preventing the federal budget : What are the advantages and disadvantages of preventing the federal budget from ever being in deficit. Explain why the high employment deficit or surplus might differ from the actual budget deficit or surplus.
What strategic advantage can continental derive : What strategic advantage can Continental derive from the real-time system as opposed to a traditional information system?
Design and implement a class that allows a teacher to track : Design and implement a class that allows a teacher to track the grades in a single course. Include methods that calculate the average grade, the highest grade, and the lowest grade. I use C# and visual studio 2012
Depict a balanced redox reaction for the process : Gold miners then react the basic aqueous product solution from the above equation with Zn dust to get gold metal. Write a balanced redox reaction for this process.
Describe the compounding scheme used by the bank : A local bank advertised the following information: interest 6.89% - effective annual yield 7.128% . no mention was made of the interest period on the advertisement. Can you figure out the compounding scheme used by the bank
Derive the equation for marginal net benefits : Consider the following total benefit (TB) and total cost (TC) functions and the corresponding marginal benefit (MB) and marginal cost (MC) functions: TB = 150 + 28 Q - 5 Q2 MB = 28 - 10 Q TC = 100 + 8 Q MC = 8 generally MNB = MB - MC. Derive the eq..
Compute the number of free electrons per cubic meter : Calculate the number of free electrons per cubic meter for copper, assuming that there is one free electron per copper atom. The electrical conductivity and density
Why the most orange growers regard the pesticide : Suppose that the repeated application of a pesticide used on orange trees causes harmful contamination of groundwater. The pesticide is applied annually in almost all of the orange groves throughout the world.
Structure of the governance form : Can industries adequately regulate and control themselves or does competition among firms require that the Government must be the only regulator?

Reviews

Write a Review

Econometrics Questions & Answers

  How the real income growth will be higher

Suppose a country has a money demand function (M/P)d = kY, where k is a constant parameter. The money supply grows by 12 per year, and real income grows by 4 percent per year. a) What is the average inflation rate

  What must have been the annual rate of economic growth

assume that the combined consumer goods + capital goods values for points a, b, and c are $20 billion, $40 billion, and $38 billion respectively. If the economy moves from point a to point b over a 14-year period.

  Itemize the adjustments and the corresponding value.

The Columbia Company manufactures a battery-powered saw. Due to increased demand during the past few years, Columbia has increased plant capacity for the saw to 300,000 units. The firm's expected output and sales for the next year in their normal..

  Find income elasticity of demand for good

What is Harry's price elasticity of demand for good x, denoted "x;px ? From Harry's perspective, is x ordinary, Gien, or neither?  What is Harry's income elasticity of demand for good x, denoted "x;I? From Harry's perspective, is x normal, inferior, ..

  Calculate the money supply and the currency deposit ratio

Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, excess reserves are $15 billion, and the required reserve ratio on checkable deposits is 10%. Calculate the money supply, the currency deposit r..

  What is the capital-output ratio k-y in the economy

Consider an economy with population growth at rate n = :03, technological growth at rate g = :02, depreciation at rate = :05, and a savings rate of s = :30. The economy is at steady state. (a) What is the rate of growth of aggregate income Y in this..

  Calculate the growth rate of zt

Suppose xt = (1:05)t and yt = (1:02)t. Calculate the growth rate of zt in each of the following cases: a) z = xy b) z = x=y c) z = y=x d) z = x^1/2 y^1/2

  Determine should the firm lease or buy

Dakota Trucking Company (DTC) is evaluating a potential lease for a truck with a 4-year life that costs $40,000 and falls into the MACRS 3-year class. If the firm borrows and buys the truck, the loan rate would be 10%, and the loan would be amorti..

  For what values of x do all potential sellers sell the car

Suppose that everyone is risk neutral, potential car buyers value lemons at $1,000 and good used cars at $3,000, the reservation price of lemon owners is $750, and the reservation price of owners of high quality used cars $1,750.

  What is the revenue of the farmer increase

If my income increases by 10%, then quantity of public transportation demanded drops by 5%. I can say that income elasticity of my demand for public transportation is negative and that public transportation is a normal good.

  Will opportunity cost of producing ethanol in us increase

Ethanol can be produced from either sugar or corn. A gallon of ethanol cost 90¢ to produce from Brazilian sugarcane and $1 to produce from U.S.corn. The U.S. Department of Agriculture expects 20 percent of the corn harvest to be used to produce et..

  What saving rate maximizes consumption per worker

Assume that the depreciation rate is 10 percent per year. Make a table showing steady- state capital per worker, output per worker, and consumption per worker for saving rates of 0 percent, 10 percent, 20 percent, 30 percent and 40 percent.

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!

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