Certificate of Deposit

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Question: What is the liquidity of the following assets?

List them in decreasing order. (Most liquid to least liquid)

a) gold bars, b) A portfolio of diversified stocks c) checking account d) a house e) Certificate Of Deposit f) savings account.

If you think any assets are equal liquidity, please explain why.
Which of the about would be the WORST store of value? Why?

Answer: Liquidity is the ability to turn an asset into cash quickly and cheaply see the link below for a definition. So the most liquid asset on your list is 1) a checking account, followed by 2) a savings account, 3) a Certificate Of Deposit, 4) a portfolio of stocks, 5) gold bars, and lastly, 6) a house. Reasons: 1) a checking account can be used like cash at most stores with proper id and cashed at a large number of locations including ATMs; 2) a savings account can be immediately accessed by going to the bank that holds the account when they are open or via an ATM; 3) a CD is like a bank account, but involves penalties and cannot be accessed by ATM; 4) a stock portfolio can be sold within minutes but you will pay a commission, normally a fraction of 1%, and access to the cash usually involves a wire transfer or even slower transfer of funds; 5) selling gold bars is a very specialized transaction with a limited number of buyers and implies physical transfer of the assets, which takes time and a commission or discount of several percent for the buyers; and 6) selling a house is not a fast process; even if a willing buyer is standing in front of you (in reality this part of the process by itself takes several months) and closing escrow on a real estate deal is a long process, which normally takes 60 to 90 days as well as a 6% commission for the realtor plus other selling costs.

“Store of value” is not really the same as “liquidity”. If you equate the two, then a house is the worst store of value.

Question: can someone please explain if you buy $ 1,000,000 CD Certificate Of Deposit, how much you receive monthly?

how much are taxes or in general how the system works ?

are there any other fees associated with that

for your calculations, please use the average rate, percentage, interests,…

please explain in an explicit and easy way to understand, like a good teacher

Answer: go to financialcalculators.com

How does a Certificate Of Deposit Work? – Gaurav Bhola

Question: Math please help!!! 10 points.?

Each year, Terrell buys a plane ticket to visit his grandmother for a week. Last year, he paid $130. This year, he paid $143. What was the percent increase in the cost of his plane ticket?

Isabelle made $56,000 last year. Randall made $40,000 plus 15% commission on $120,000 in sales. Who had a higher income last year? Please Explain.

Hanna makes her own furniture polish using 25% vinegar and 75% olive oil. Write and solve an equation to determine how much total solution she made if she used 3 cups of olive oil. Show your work

Purvi and her friends tipped their waiter a total of $8 for dinners that cost $9, $8, $11 and $12 each. Use a percent proportion to solve for the percent tip they left the waiter. Show your work.

Would you make more interest by investing $2,500 in a 6-month Certificate Of Deposit (CD) at 3% interest or by investing $1,000 in a 12-month CD at 4% interest? Show your work.

Answer: 100/130 = 0.7692307692
0.7692307692 x 143 = 110 %
So 110 – 100 = 10% increase

120000 X 15 % = 120000 X 0.15 = 18000
40000 + 18000 = $58000
Randal makes more because he gets 0.15 (fifteen %) of $120000, which is $18000, as well as $40000 so add them together to get his total income.

0.75 x Cups of furniture polish = Cups of olive oil
0.25 x Cups of furniture polish = Cups of Vinegar
3cups of olive oil/0.75 = 4 Cups of furniture polish

9 + 8 + 11 +12 = 40
8/40 = 0.2 = 20% tip

2500 x 1.03 = 2575
2575 x 1.03 = 2652.25
2652.25 x 1.03 = 2731.8175
2731.8175 x 1.03 = 2813.772
2813.772 x 1.03 = 2898.185186
2898.185186 x 1.03 = $2985.13
$2985.13 – $2500 = $485.13 made in 6 months

$1000 x 1.03^12 = $1425.76
$1425.76 – $1000 = $425.76 made in 12 months

By the way ^ means to the power of. Have fun doing your homework if you copy this out you will get full marks. Try to understand it good luck.

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