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MrRissso [65]
2 years ago
7

First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compound

ed semiannually. Calculate the EAR for First National Bank and First United Bank.
Business
1 answer:
Liula [17]2 years ago
8 0

Answer:

First National Bank    = 14.6%

First United Bank.=   = 14.8%

Explanation:

<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>

It can be calculated as follows:

EAR = ( (1+r)^(n) -1) × 100

r -interest rate per period

n- number of period

EAR - Effective annual rate

First National Bank

r - interest rate per month = 13.7%/12 = 1.141%

number of period = 12 months

EAR =( (1+011141)^(12) - 1) × 100

       =  0.145938395 × 100

       = 14.59

      = 14.6%

First United Bank.

r- interest rate per quarter - 14%/4 = 3.5% per quarter

n- number of quarters = 4

EAR = ((1+0.035)^(4)- 1) × 100

      = 0.147523001 × 100

      = 14.8%

 

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<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
  • Increases in the stock market are a result of expansionary economic policy since it boosts economic activity. Fiscal and monetary channels can be used by policymakers to carry out an expansionary strategy. It is typically used when inflationary pressures are low and the economy is headed towards a recession.
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What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

The lower value of the dollar will decrease imports and increase exports. Appreciation of the value of the dollar and the decrease of U.S. net exports.

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7 0
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Answer:

The amount of revenue that will be reported on the income statement for the month ended July 31 is equal to $5,300.

Explanation:

The applicable accounting concept here is accrual concept.

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Based on the accrual concept, only transactions 1 and 4 will be used in calculating the amount of revenue for July as follows:

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Your question is incomplete, but most probably your full question was:

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