You are considering investing $6,789 at an interest rate of 7.345% compounded annually for 15 years or investing $6,789 at an interest rate of 8.123% for 15 years. Which is a better investment option?


Answer 1


$6,789 at an interest rate of 8.123% for 15 years


As in the question, it is mentioned that there are two investment options who are compounded annually and the invested amount is also the same but the rate of the interest is different. In the first investment option, the rate of interest is 7.345% and in the second option, the rate of interest is $8.123%

The higher rate of interest, the better investment option it was as it gives the highest return as compare to the first investment option

Related Questions


For the purpose of classifying liabilities as current or​ noncurrent, the term operating cycle refers to A. the time period between the date the sale is made and the date the related revenue is collected.
B. the time period between the purchase of merchandise and the conversion of this merchandise back to cash.
C. a period of one year.
D. the average time period between business recessions.


Answer: Option B


Explanation: In simple words, operating cycle refers to the time taken by an organisation from converting its initial purchase of inventory to the cash payment received from selling that inventory. In other words, it is the cycle from initial outlay of cash to final inflow of cash.

Thus, from the above we can conclude that the correct option is B.

The right answer to this question is B) The period between the purchase of goods and the conversion of this merchandise back to cash.

Because current liabilities or non-current liabilities are influenced by income from the company.

Further explanation

the operational cycle refers to the days that are required for a company to receive inventory, sell that inventory and collect cash from the sale of that inventory. This cycle plays an important role in determining the efficiency of business performance.

The operating cycle utilizes receivables and inventory. This is often compared to the cash conversion cycle because it uses the same parts.

However, what makes them different is that the operating cycle analyzes these components from the perspective of how well the company manages operational capital, rather than the impact these components have on cash.

This is called the operation cycle because the process of producing/buying inventory, selling it, recovering customer's cash, and using that cash to buy/produce inventory, is repeated during the company's operations.

The operating cycle is useful for estimating the amount of working capital that a company needs to maintain or grow its business. Another useful measure used to evaluate the efficiency of a company's operations is the cash cycle.

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Operation cycle,


Class: High School

Subject: Business

Keyword: operating cycle


Purchase return and allowances is a contra account, and its normal balance would be...


The correct answer that would best complete the given statement above is the term CREDIT and DEBIT. So here is the complete answer. Purchase return and allowances is a contra account, and its normal balance would be a credit and debit. Hope this answers your question.

using the terms macroeconomics and microeconomics explain the economic relationship between a nation and the firms and households that are in the nation



- The nations

Created regulations that prevent the firms to do something that harmful for the households. This made people in the households able to safely buy their products without worrying much about the materials that is used by the firms.

The nations also create regulations that prevent the firms to conduct malicious/dishonest marketing practices.

- The firms.

Created product that can be consumed by the customers.

These products will be use by the household to fulfill both their basic needs and tertiary needs.

After obtaining a profit, the firms will pay a percentage of their profits to the nations. The nations will use it to fund government programs.

- The household

The household provides the labors that is ued by the firm. They also use the wage of their labors to purchase products that is produced by the firm. A percentage of their wages also taken as taxes for the household.


A computer repair service has a design capacity of 80 repairs per day. Its effective capacity, however, is 64 repairs per day, and its actual output is 62 repairs per day. The manager would like to increase the number of repairs per day. Which of the following factors would you recommend that the manager investigate: quality problems, absenteeism, or scheduling and balancing? Explain your reasoning.


The manager is to investigate more on scheduling and balancing.

There is a need to maintain the balance between the capacity of the repairs per day and the effective capacity of the repairs per day.

The managers are not emphasizing the effectiveness of the tasks instead focus on the capacity and the tasks that can be done. It is neither the issue of quality nor absenteeism.

It is the issue of scheduling and balancing that means there should be a balance between the designed capacity as well as the effective capacity of repairs per day.

Therefore the correct option is scheduling and balancing.

To know more about the manager investigation about the repairs of the day, refer to the link below:


The recommendation for the manager is to investigate more on scheduling and balancing.


It is clear that it is not a problem of quality (the problem is the number of repairs per day, not how the satisfaction customer's level is after the repairment). It is not either a problem of absenteeism since it does not define the total workers hired Vs the output of the total repairs. It seems that the effective capacity has to do more with how the tasks and loads are carried by the working team, since the difference between "design" capacity and "effective" capacity suggests a problem with balancing and scheduling activities

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