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Otrada [13]
3 years ago
13

Suppose that the spot price of the US dollar is 1 ($/Canadian dollar) and the one-year forward rate is 1.2 ($/Canadian dollar),

and the 1-year on US deposits is 5 percent. What would the interest rate have to be in Canada to make you indifferent between putting your money there or here
Business
1 answer:
natima [27]3 years ago
7 0

Answer:

6 percent.

Explanation:

To solve this question, we will take help of the Fisher equation,

Therefore,

(Spot rate/Forward rate) = (interest rate in US/Interest rate in Canada),

(1/1.2) = (0.05/x), Now solving for 'x'.

There fore,

x = (1.2 * 0.05) / 1

x = 0.06.

Hope this clear things up

Thankyou.

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Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the
larisa86 [58]

Answer:

The EFF of card is 27.45%.

Explanation:

EFF interest rate is an interest rate which is actually paid or received on debt or investment. It is also known as Effective Interest rate.

APR = 24.50%

EFF = ( ( 1 + r/m )^m ) - 1

EFF = ( ( 1 + 0.245/12 )^12 ) - 1

EFF = ( ( 1 + 0.020417 )^12 ) - 1

EFF = ( ( 1.020417 )^12 ) - 1

EFF =  1.27447765 - 1

EFF = 0.2745

EFF = 27.45%

6 0
3 years ago
In its first year of operations, Woodmount Corporation reported pretax accounting income of $640 million for the current year. D
AVprozaik [17]

Answer:

At the end of the current year, the deferred tax liability related to the excess depreciation will be 144 million

Explanation:

In order to calculate At the end of the current year, the deferred tax liability related to the excess depreciation we would have to use the following formula:

Deferred tax liability = ($160 million * 25%) + ($160 million * 30%) + ($160 million * 35%)

Deferred tax liability =$40 million + $48 million + $56 million

 Deferred tax liability = $144 million

At the end of the current year, the deferred tax liability related to the excess depreciation will be 144 million

6 0
3 years ago
You are considering purchasing a house in Collin County that costs $350,000. You are debating whether to finance the house for 1
Dennis_Churaev [7]

Answer:

d

Explanation:

i believe this should be correct

8 0
3 years ago
How do you get a coutry girls attetion?
avanturin [10]

<em><u>How </u></em><em><u>you </u></em><em><u>get </u></em><em><u>a </u></em><em><u>Gurl~</u></em>

Stand there like a ghost shaking from the rain (rain).

She'll open up the door and say, "Are you insane ('ane)?"

Say it's been a long 6 months

And you were too afraid to tell her what you want (want)

And that's how it works.

That's how you get the girl.

And then you say,

"I want you for worse or for better,

I would wait forever and ever,

Broke your heart, I'll put it back together.

I would wait forever and ever."

And that's how it works

That's how you get the girl, girl...

Oh.

And that's how it works

That's how you get the girl, girl...

Remind her how it used to be, be (yeah, yeah)

With pictures in frames of kisses on cheeks (cheeks)

Tell her how you must have lost your mind. (uh-uh)

When you left her all alone, and never told her why (why).

And that's how it works.

That's how you lost the girl.

And now you say,

"I want you for worse or for better,

I would wait forever and ever (ever and ever),

Broke your heart, I'll put it back together (together).

I would wait forever and ever (ever and ever)."

And that's how it works

That's how you get the girl, girl...

Oh.

And that's how it works

That's how you get the girl, girl... (Yeah, yeah)

And you know (oh-oh oh oh)

That I don't want you to go oh-oh..

Remind me how it used to be.

Pictures in frames of kisses on cheeks.

And say you want me.

Yeah...

And then you say,

"I want you for worse or for better (for worse or for better),

I would wait forever and ever (ever and ever),

Broke your heart, I'll put it back together.

I want you forever and ever (I want you forever and ever)."

[4x]

And that's how it works

That's how you get the girl, girl.

Oh.

That's how it works.

That's how you got the girl.

____________

~ʆᵒŕ∂ཇꜱꜹⱽẻⱮë

8 0
3 years ago
Read 2 more answers
The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If
horsena [70]

Answer:

B. $2,000

Explanation:

Given;

Total cost of ending inventory = $9,000

Total number of units = 600

Over heads cost = $3,000 and the overhead rate is 75% of direct labor

Let direct labour cost be y

75% × y = 3000

3y/4 = 3000

y = 4 × 3000/3

y = $4,000

Total Inventory cost = direct material cost + direct labour cost + overheads

9000 = direct material cost + 4000 + 3000

direct material cost = 9000 - 7000

                                = $2,000

8 0
4 years ago
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