What would you prefer, a savings account that pays 10% interest compounded semiannually or one that pays 10% interest compounded daily? Explain.

10% interest compounded daily will be preferable

Explanation:

In the first case, compounding occurs twice (semiannually)

In the second case, compounded occurs 365 days.

Note that compounding is earning interest on principal plus the already accumulated interest amount.

In the first case the Annual Percentage Rate (APR) would be:

= (1 + 10%/2)^2 - 1

= 0.1025

= 10.25%

In the second case the Annual Percentage Rate APR would be:

= (1 + 10%/365)^365 - 1

= 1.00027397^365 - 1

= 1.105154 - 1

= 0.105154

= 10.51%

So, 10% interest compounded daily will be preferable as it yield more.

answer; work samples;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.