Answer and Explanation:
The computation of EAR for each investment is shown below:-
EAR = ((1 + APR ÷ m)^m) - 1
where m indicates compounding periods
Now we will put the values with the help of the above formula
For 9.4% APR compounded monthly is
EAR = ((1 + 0.094 ÷ 12)^12) - 1
= 9.815747%
For 9.4% APR compounded annually is
EAR = ((1 + 0.094 ÷ 1)^1) - 1
= 9.400000%
For 8.7% APR compounded daily is
EAR = ((1 + 0.087 ÷ 365)^365) - 1
= 9.088537%
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Answer:
b) $11,760
Explanation:
Using the straight-line deprecition method, the annual depreciation mount for an asset is an equal amount which is equal to
Annual depreciation = Cost of the assets - Salvage value/ Expected useful life
<em>Cost of assets include the purchase price plus every other costs incurred to bring them for the intended use.</em>
<em>Cost of equipment</em> = 60,000 + 2,800 + 8,000 =70,800
<em>Annual depreciation</em> = (70,800 - 12,000)/5
= $11,760
There are 52 weeks in a year, so you will make 300 x 52, which equals 15,600 a year