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natta225 [31]
3 years ago
11

Find the interest rates in the following situations. a. APRequals9​%, compounded quarterly. Find the effective annual interest r

ate. b. Nominal rate is 8​% compounded monthly. Find the effective​ semi-annual rate. c. The effective annual interest rate is 9.06​% and compounding is monthly. Find the nominal interest rate. d. requals9​% and compounding is quarterly. Find the effective​ semi-annual interest rate.

Business
1 answer:
anastassius [24]3 years ago
8 0

Answer:

Answer for the question:

Find the interest rates in the following situations. a. APRequals9​%, compounded quarterly. Find the effective annual interest rate. b. Nominal rate is 8​% compounded monthly. Find the effective​ semi-annual rate. c. The effective annual interest rate is 9.06​% and compounding is monthly. Find the nominal interest rate. d. requals9​% and compounding is quarterly. Find the effective​ semi-annual interest rate

is given in the attachment.

Explanation:

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The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is stronger in most of the time over the U.S. dollar. When the yen is stronger than the U.S. dollar, it's cheaper for Japanese customers to buy the U.S. products. This type of agreement should lead to more sales for the Ozark Bike Company which means their profits will in-turn be higher. Not only will profits rise, so will awareness of the product and help grow the Ozark Bike brand.

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