On the Internet You Find the Following Offers for Opening

question 203

Multiple Choice

On the Internet you find the following offers for opening an online account.Which of them is the best offer if you have $5,000 to save for two years?

• A)an interest rate of 5 percent,with the bank charging you a $50 processing fee at the time you open your account
• B)an interest rate of 4 percent,with the bank giving you a $65 bonus at the time you open your account
• C)an interest rate of 3.5 percent,with the bank giving you a $100 bonus to open your account
• D)an interest rate of 4.5 percent,with no processing fee and no bonus

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent or salaries.

Cost-Volume-Profit Graph

A visual representation that shows the relationship between a company's costs, sales volume, and profits, helping in decision-making and planning.

Fixed and Variable

Costs or expenses that a company may incur, with fixed costs being constant regardless of activities, and variable costs fluctuating with business activity levels.

Separation Methods

Techniques used in chemistry and manufacturing to divide components of mixtures into individual constituents, such as distillation and filtration.