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kirill [66]
2 years ago
11

Suppose you want to borrow money from banks. You are considering

Business
1 answer:
liubo4ka [24]2 years ago
8 0

The loan I would select is loan A. This is because it has a lower effective annual rate.

<h3>Which loan would I select?</h3>

The loan I would select would be the cheaper one.  In order to determine the cheaper loan, I would calculate the effective annual rate. The effective annual rate is the actual interest rate that is paid on a loan.

Effective annual rate = (1 + APR / m ) ^m - 1

Where: M = number of compounding

Loan A = ( 1 + 0.0775/365)^365 - 1 = 8.06%

Loan B = (1 + 0.08/2)^2 - 1 = 8.16%

To learn more about the effective annual rate, please check: brainly.com/question/4064975

#SPJ1

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Spotnick Enterprises is exploring options for entering into international markets. The key stakeholders have expressed that the
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2 years ago
Coastal Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller tr
rosijanka [135]

Answer:Allocated MOH= $16

Explanation:

Giving the following information:

teller transaction processing ($2.80 per teller transaction)

check processing ($0.25 per canceled check)

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<u>To allocate overhead, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2.8*4 + 0.25*12 + 0.2*9

Allocated MOH= $16

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Suppose investment spending increases by $50 billion and as a result the equilibrium income increases by $200 billion. the value
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