Stacey deposits $5,000 into an account that pays 2 percent interest, compounded annually. At the same time, Kurt deposits $5,000 into an account paying 3.5 percent interest, compounded annually. At the end of three years:
a. both stacey and kurt will have accounts of equal value
b. kurt will have twice the money saved that stacey does
c. kurt will earn exactly twice the amount of interest that stacey earned
d. kurt will have a larger account value than stacey will
e stacey will have more money saved than kurt
Ans: d. kurt will have a larger account value than stacey will
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A(n) ________ shows the flow of inputs to and outputs from a job being analyzed
A) organization chart B) process chart C) job analysis D) job description
Suppose a firm wants to borrow $200 million for 5 years to fund capital expenditures, and is
considering the choice of a bank loan or a public issue through an investment banking firm as underwriter. For simplicity, we will assume that in either case the firm will issue pure-discount debt. The bank demands a 10.25% interest rate (with no fee), while the underwriter states that the interest cost will be 9.25 percent with 3% flotation costs. Which funding source provides the lower effective interest cost? a. the bank loan b. the public issue c. both provide exactly the same effective interest cost