1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rashid [163]
3 years ago
14

Find the effective interest rate per payment period for an interest rate of 9% compounded monthly for each of the given payment

schedule:
a. Monthly

b. Quarterly

c. Semiannual

d. Annual
Business
1 answer:
Temka [501]3 years ago
3 0

Answer:

a. 0.75% per month

b. 2.25% per quarter

c. 4.5% semi- annually

d. 9% yearly

Explanation:

a. Computing the effective interest rate per payment period for the payment schedule which is monthly:

Effective rate (monthly) = Nominal rate (r) / Compounded monthly (m)

where

r is 9%

m is 12

Putting the values above:

= 9% / 12

= 0.75% per month

b. Computing the effective interest rate per payment period for the payment schedule which is quarterly:

Effective rate (quarterly) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 4

Putting the values above:

= 9% / 4

= 2.25% per quarter

c. Computing the effective interest rate per payment period for the payment schedule which is semi- annually:

Effective rate (semi- annually) = Nominal rate (r) / Compounded quarterly (m)

where

r is 9%

m is 2 (every 6 months)

Putting the values above:

= 9% / 2

= 4.5% semi- annually

d. Computing the effective interest rate per payment period for the payment schedule which is annually:

Effective rate (annually) = Nominal rate (r) / Compounded yearly (m)

where

r is 9%

m is 1 (end of the year)

Putting the values above:

= 9% / 1

= 9% yearly

You might be interested in
The net income or net loss is calculated on the
Ber [7]
The net income or net loss is calculated on the statement of owner’s equity.
4 0
3 years ago
OSHA issues fines against companies which have safety violation in order to _______.
lozanna [386]

OSHA issues fines against companies which have safety violation in order to D. Compel them to make safety improvements.

OSHA stands for the occupational safety and health administration. The OSHA administration makes sure that all safety requirements are being followed by a business to ensure quality and safety of their employees and consumers. OSHA conducts safety inspections to make sure there are no safety violations, if there are, there is a time limit set for when/how to fix the violation.

7 0
3 years ago
Read 2 more answers
Which of the following would be best considered to be an agency conflict problem in the behavior of the following financial​ man
fredd [130]

Answer:

A. Bill chooses to pursue a risky investment for the​ company's funds because his compensation will substantially rise if it succeeds. 

Explanation:

An agency conflict problem usually arises when the agent (managers) do not act in the best interest of his principals (e.g. shareholders) usually because of selfish interests of the agent (manager).

I hope my answer helps you

3 0
3 years ago
The following T-account is a summary of the cash account of Buffalo Industries. Cash (Summary Form) Balance, Jan. 1 21,600 Recei
kupik [55]

Answer:

$702,000

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in assets other than cash is an outflow while an increase in liabilities is an inflow. Depreciation and other non-cash expenses deducted in the income statements are added back while the non-cash income such gain on asset are deducted from net income.

The amount of net cash provided (used) by financing activities should be reported in the statement of cash flows

= -$108,000 + $810,000

= $702,000

Other transactions are either operating or investing activities related.

5 0
3 years ago
Round Dot Inns Is preparing a bond offering with a coupon rate of 6 percent, paid semiannually, and a face value of $1,000. The
lbvjy [14]

Answer:

a.The bonds will sell at a premium if the market rate is 5.5 percent.

Explanation:

Following information provided in the question

Coupon rate = 6%

Face value = $1,000

Time period = 10 years

And if we consider the interest rate 5.5%

So as we can see than the interest rate or market rate is less than the coupon rate or we can say that the coupon rate is more than the market rate so the bond is sell at a premium

6 0
3 years ago
Other questions:
  • Your Web team has been advised that the sales representatives receive a large number of questions from customers about a newly i
    11·2 answers
  • The Ascent, a mountain bicycle manufacturer, has been in the bicycle industry for a year now. The CEO wishes to better the compa
    9·1 answer
  • The gasoline tax:
    9·1 answer
  • Match the items with their respective descriptions.
    10·1 answer
  • Mr. G obtains a $70,000 loan today. He will repay the bank with equal payments to be made at the end of each 6-month period, or
    5·1 answer
  • A portfolio of stocks can achieve diversification benefits if the stocks that comprise the portfolio are ________.
    10·1 answer
  • "The risk-free rate of return is 4 percent, and the market return is 10 percent. The betas of Stocks A, B, C, D, and E are 0.85,
    13·1 answer
  • The consumer price index (CPI) and the producer price index (PPI) actually measure the same economic factors.
    14·1 answer
  • Company Z has sales of $3,000,000, net income of $600,000, total assets of $1,000,000 and 800,000 shares of common stock outstan
    7·1 answer
  • What are the six stages of the product adoption process?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!