Joan Has Savings of $12,000 on June 1

question 93

Short Answer

Joan has savings of $12,000 on June 1. Since she may need some of the savings during the next 3 months, she is considering two options at her bank. (1) An Investment Builder savings account earns a 0.25% rate of interest. The interest is calculated on the daily closing balance and paid on the first day of the following month. (2) A 90- to 179-day cashable term deposit earns a rate of 0.8%, paid at maturity. If simple interest rates do not change and Joan does not withdraw any of the funds, how much more will she earn from the term deposit up to September 1? (Keep in mind that savings account interest paid on the first day of the month will itself subsequently earn interest during the subsequent month.)

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Definitions:

Reengineering

The radical redesign of organizational processes to achieve major improvements in such factors as time, cost, quality, or service.

Low Tolerance

A decreased capacity or willingness to accept opinions, behaviors, or practices different from one's own.

Transformational Leaders

Leadership style characterized by the ability to inspire and motivate followers to achieve extraordinary outcomes by fostering significant changes and innovations.

Overcoming Resistance

Strategies and approaches used to manage and mitigate resistance to change within organizations to ensure successful implementation of new ideas or practices.