Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a local bank is running the following advertisemen

A local bank is running the following advertisement in the newspaper: "For just $ 1,000...

50.1K

Verified Solution

Question

Accounting

A local bank is running the following advertisement in the newspaper: "For just $ 1,000 we will pay you $100 forever!" The fine print in the ad says that for a $1,000

deposit, the bank will pay $ 100 every year in perpetuity, starting one year after the deposit is made. What interest rate is the bank advertising (what is the rate of return of this investment)?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

In a sample of 100 Oklahoma public schools, it was found that Oklahoma spends 8,097 dollars...

Biology
1.2K views

Explain at least three issues studies have found regarding elder abuse.

Finance
1.2K views

Reflecting on the focus and content of this course, what is an important challenge facing the...

General Management
1.2K views

Answer the followring question. Hiring of employees is an important factor in every food service business. Identify...

General Management
1.2K views

Leaders are born and not made’. How relevant is this statement in today’s workplace? explain this in...

Accounting
1.2K views

You are a financial manager for Zoom Corp., which manufactures bicycles. In the most recent fiscal...

Basic Math
1.2K views

The Acting Club two-act plays begins at 3:20 P.M. The first act is twice as...

Calculus
1.2K views

Brenda cuts her grass every 8 days and trims her shrubs every 36 days If...

Calculus
1.2K views

Consider 5ae 7y 17ye5 Determine the derivative of y with respect to x y

Accounting
1.2K views

Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online...

Accounting
1.2K views

Key figures for Samsung follow. $ millions Inventory Cost of sales Current Year $ 22,966...

Accounting
1.2K views