Homework Assignments (due 3/2)
1. First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City
Bank pays 7 percent interest compounded annually. If you made an $8,000 savings deposit in each
1. Please explain briefly why Equity Multiplier ratio always equals Debt/Equity
ratio plus 1.
The formula of Equity multiplier is Equity multiplier = Total assets/Total equity
Based on the balance sheet formula, Total assets = Total equity + Total
1. Defined Benefit Pension Plan- This a type of pension plan that an employer or
sponsor promises the employee a specified monthly benefit on retirement
which is based off of a standard formula which takes in
PROBLEM SET CHAPTERS 15 and 16
Chapter 15 DEFICITS AND DEBT PROBLEM SET
NAME: _Shawn Klier_DATE: _ / _ / _
Give the best answer to each of the following questions.
1. Suppose in Year 0, the U.S. government debt was $5,605 billion. Given the revenues and