Answer:
The answer is 0.91%
Explanation:
Solution
Farmers Bank:
Lending Amount =$50,000
Nominal rate (APR) =5.0%
Interest paid = Quarterly (4 periods in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1 +5.0%/4)^4 -1
=(1+ 0.0125)^4 -1
=(1.0125)^4 -1
=1.05094533691406 -1
= 0.5094533691406
= 5.0954%
Therefore the effective annual rate in farmer bank is 5.0954%
Merchants Bank:
Lending Amount =$50,000
Nominal rate (APR) =6.0%
Interest paid = Annually (1 period in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1+ 6.0%/1)^1 -1
= (1+0.06)^1 -1
=(1.06)^1 -1
=1.06-1
=0.06 or 6.0000%
Therefore the effective annual rate of the Merchant bank is 6.000%
Now,
The difference between the annual rates=EAR merchant bank -EAR Farmers bank
=6.0000% - 5.0945%
=0.9055% or 0.91%
Therefore the difference between the effective annual rates charged by the two banks is 0.91%
<span>Divide $200 by 80 to get $2.50 price per zap. At 3%, Jermaine's $200 would grow to $206 ($200 x 1.03) = $206 by the end of the year. At the end of one year he would have $6 more and would be able to purchase two more zaps (2 X ($2.50 X 1.03), or 2 X $2.575 = $5.15) He would have $.85 left in change.</span>
Answer:
Deceptive advertisement.
Explanation:
Deceptive advertisement: It is a type of advertising that is meant for damaging the reputation of competitor´s ad and products by making false claim or by spreading wrong information about the rival´s product. This advertisement is also gimick the customer by misleading them in their promotional campaign. The prime purpose of these type of advertisement is to promote their product as superior and gain more sales due to wrong information spread.
In the given case, pharmaceutical company is falsely claiming that the product provides relief within two minutes due to its unique ingredients, which is deceptive advertisement.
Answer:
4.76% and 0.5
Explanation:
The computation is shown below:
Average borrowing rate is
= Cost of debt capital ÷ (1 - tax rate)
= 3% ÷ (1 - 0.37)
= 4.76%
And, the market beta is
Cost of equity = Risk free rate of return + Beta × (Market risk premium - risk free rate of return)
5% = 2.5% + Beta × 5%
So, the beta is 0.5
The (Market risk premium - risk free rate of return) is also known as market risk premium
The market system is also known as capitalism, while the command system is also known as communism. The market system is owned by private ownership, businessman and companies, hence it has capitalism concept. The command system is owned by a community or public.
Hence it can be said that
The market system is also known as <u>capitalism</u>, while the command system is also known as <u>communism</u>.