Answer:
The supply of savings increases.
Explanation:
We know that the supply of loanable funds is dependent upon the amount of deposits in the savings account. Supply curve of loanable funds represents the direct relationship between the quantity supplied and the interest rate. It is a upward sloping curve which indicates that an increase in the interest rate will lead to increase the quantity supply of loanable funds.
There is a change in the supply of loanable funds if there is any change in the savings behavior of the customers. If the savings of the customers increases then as a result the supply of savings also increases.
Answer:
Earnings per share = Net income/No of ordinary shares outstanding at the end of the year
Earnings per share = $290,000/240,000 shares
Earnings per share = $1.21
Therefore, Price-earnings ratio = Market price per share/Earnings per share
Price-earnings ratio = $70/1.21
Price-earnings ratio = 57.85
Explanation: First and foremost, there is need to calculate earnings per share by considering the net income and then divide it by the number of common stocks outstanding at the end of the year. Price-earnings ratio is obtained by dividing the market price per share by earnings per share.
Answer:
<u>2.53%</u>
Explanation:
We need to understand what effective annual rate is to solve this question.
Effective Annual Rate is the actual interest earned on an investment due to effect of compounding.
The formula is:
Effective Annual Rate = 
Where
i is the interest rate given (nominal interest rate)
n is the number of compounding per year
For the old bank,
5% is the interest rate, so i = 5% = 5/100 = 0.05
n is the number of compounding per year, that will be n = 12 since compounding monthly
So, we have:
Effective Annual Rate 
For second bank, we have:
i = what we need to find
n = 2 (since semi annual compounding, every 6 months)
So,
Effective Annual Rate = 
This should be equal to APR from 1st bank (0.05)
So, we solve for i:
So, the interest would have to be
0.0253 * 100 = <u>2.53%</u>
Answer:
175.36
Explanation:
Given that,
Demand data for various month is given.
Forecast for July = 164
Alpha = 0.8
Calculation of forecast by using the exponential smoothing method:
F(t+1) = ∝Y(t) + (1 - ∝)F(t)
F(t+1) represents forecast value of (t+1)
∝ = Smoothing constant
Y(t) = Actual value of period t
F(t) = Forecast of period t
For the month of July,
F(t+1) = ∝Y(t) + (1 - ∝)F(t)
= (0.8 × 165) + [(1 - 0.8) × 164]
= 132 + 32.8
= 164.8
For the month of August,
F(t+1) = ∝Y(t) + (1 - ∝)F(t)
= (0.8 × 178) + [(1 - 0.8) × 164.8]
= 142.4 + 32.96
= 175.36
Therefore, the forecast for August is 175.36 if the forecast for June was 164.
