If You Deposit $100 Now with Interest Rate of 3

question 95

Essay

If you deposit $100 now with interest rate of 3 percent, after the first period you will have an amount equal to (100 + 100× 0.03) = 100(1 + 0.03); after the second period the amount will be 100(1 + 0.03) + [100(1 + 0.03)]×0.03 = 100(1 + 0.03)(1 + 0.03) = 100(1 + 0.03)2. If we continue this reasoning, we find out that the amount in the account after n periods is equal to $100(1 + 0.03)n. In general, if the interest rate is i percent, the formula for compound interest rate becomes (1 + i%/100)n. Suppose there is a tax rate of t percent on interest income. How does our formula change?

Recognize the relevance of the humanistic perspective in psychology.

Learn about the concept and importance of positive psychology.

Understand the significance of cross-cultural perspectives in examining human behavior.

Recognize the impact of biological factors on psychological processes.

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Definitions:

Variable Factory Overhead

Expenses within a factory that fluctuate with production volume, such as utilities or materials used in production.

Units Produced

The total number of units of product created by a company during a specific period.

Budgeted Production Units

The number of units a company plans to produce over a specific period as estimated during the budgeting process.

Sales

Sales refer to the transactions in which goods or services are transferred from the seller to the buyer for money or value, representing the primary source of revenue for most businesses.