Economy

A three-year bank CD paying 7.23 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to

Serggg [28]

Answer:

Follows are the solution to the question:

Explanation:

m = 4,

EAR = $(1 + \frac{0.08}{4}) \times 4-1$

$= 1 + 0.02 \times 4-1\\\\= 1 + 0.08 -1\\\\= 0.08\\\\$

The successful quarter cumulative rate of interest = 8.24 \%

In Method 2 use Tool in Texas:

By Using the (ICONV) worksheet:

1)

To pick the worksheet, click ICONV 2.

2)

Its previous meaning will represent the NOM.

3)

To clear the worksheet, click [CLR WORK] 2nd

Continue as below.

Displayed keystrokes:

NOM = previous value 2nd ICONV:

NOM = 0.00 2nd CLRWORK:

8 DAYS: Name = 8.00.

EFF: DownArrow = 0.00

DownArrow: C / Y = meaning previous

4)

DOS: C / Y = 5.00 p.m.

EFF: DownArrow = 0.00

CPT: FRP = 8.24

3 0

2 years ago

The cost of making a shirt is half of what the shirt normally sells for. today, however, the shirt is on a 15% discount from its

Stolb23 [73]

Let the cost of the shirt be y and the price by the which the shirt is sold is 2y.

Now, let's calculate how much does 15% represent from the price of the shirt:
15% discount = (15/100) x 2y = 0.3y
Therefore, the shirt is sold for : 2y - 0.3y = 1.7y

This means that at 15% discount, the shirt is sold at 1.7 of its original cost.

7 0

2 years ago

Use the following data to calculate the cost of goods sold for the period:

PtichkaEL [24]

Answer:

The cost of goods sold for the period is:

= $250,600.

Explanation:

a) Data and Calculations:

Beginning Raw Materials Inventory $30,600

Ending Raw Materials Inventory 70,600

Beginning Work in Process Inventory 40,600

Ending Work in Process Inventory 46,600

Beginning Finished Goods Inventory 72,600

Ending Finished Goods Inventory 68,600

Cost of Goods Manufactured for the period 246,600

To determine the cost of goods sold:

Beginning Finished Goods Inventory $ 72,600

Cost of Goods Manufactured for the period 246,600

Cost of goods available for sale $319,200

Ending Finished Goods Inventory (68,600)

Cost of goods sold $250,600

4 0

2 years ago

Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A

olya-2409 [2.1K]

Answer:

The maximum transfer price would be $50.

Explanation:

The maximum transfer price is nothing but the market price for the product , which is the most simple way to derive a transfer price . Here by selling the components of aircraft engines at market price, there are very good chances of high profits to be earned. So the maximum transfer price should be $50.

7 0

3 years ago

Winn Co. enters into a 6-year finance lease for a copy machine with an interest rate of 8% (the present value of its $1,298 annu

Over [174]

Answer:

1298

Explanation:

Reason: Right-of-Use Asset is debited for the present value of the annual lease payment which is $1,298

7 0

3 years ago