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3 years ago

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? A. 6 B. 12 C. 4 D. 3

Business

1 answer:

nadezda [96]3 years ago

7 0

Answer:

How many times will interest be added to the principal in 1 year if the interest is compounded quarterly? C. 4

Explanation:

Compounding means at the end of every term, the interest adds up to the Principal Amount. Compounded quarterly means, you do it for every three months. So after every three months, your interest will be added to principal.

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Greenfield, Inc. agrees to make lease payments of $220 at the end of each month for 48 months for the use of a machine. Assuming

Anna35 [415]

Answer:

The Present value of the lease payment is $ 6,713.28

Explanation:

Given as :

The payment amount at the end of every months = $ 220

The total months = 48 months , i.e 4 years

The rate of compounded yearly = 12 %

Let The present principal value = P

∵ $ 220 is the payment at the end of 48 months

∴ Total amount in 48 months = $ 220 × 48 = $ 10,560

Now , <u>from compounded method</u>

The Amount after 48 months = Present value × $(1+\frac{\textrm Rate}{100})^{\textrm Time}$

So , $ 10,560 = P × $(1+\frac{\textrm 12}{100})^{\textrm 4}$

Or, $ 10,560 = P × $(1.12)^{4}$

So , $ 10,560 = P × 1.573

∴ P = $\frac{10560}{1.573}$ = $ 6,713.28

Hence The Present value of the lease payment is $ 6,713.28 Answer

8 0

3 years ago

Suppose the required reserve ratio is 8% and the Fed purchases $10 million worth of Treasury bills from Wells Fargo. What's the

ahrayia [7]

The answer is $100 million.

The reserve ratio is the percentage of a commercial bank's deposits that it must retain in cash as a reserve in case of large client withdrawals, as determined by the central bank.

The reserve ratio is a significant monetary policy instrument used by the Federal Reserve in the United States to boost or decrease the economy's money supply.

Banks require an RRR of 8% for demand deposits, not for funds received through the selling of treasury bills to the FED, hence Wells Fargo will be free to raise its loans by $100 million.

To know more about reserve ratio click here:

brainly.com/question/13758092

#SPJ4

7 0

1 year ago

To create an indian flag as per the standard ratio

adell [148]

Anwser - 3:2 I’m not sure if u still need help

5 0

3 years ago

Omega Inc. expects its net income to be $525,000 this year. The firm's dividend payout ratio is 60 percent. The firm is financed

REY [17]

Answer: $700,000

Explanation: Retained earnings is the amount of earnings left with the company after paying for dividends of common stockholders.

Retained earnings break even can be computed as follows :-

$Break\:even=\frac{retained\:earnings}{equity\:ratio}$

where,

retained earnings = net income (1- payout ratio)

= $525,000 (1 - 60%)

= $210,000

therefore,

$Break\:even=\frac{210,000}{0.3}$

=$700,000

3 0

3 years ago

Lion Company's direct labor costs for the month of January were as follows: What was Lion's direct labor efficiency variance? Se

lakkis [162]

Answer:

Direct labor time (efficiency) variance= $6,150 favorable

Explanation:

Giving the following information:

Lion Company's direct labor costs for the month of January were as follows:

Actual total direct labor-hours 20,000

Standard total direct labor-hours 21,000

Direct labor rate variance - unfavorable $3,000

Total direct labor cost $126,000

First, we need to calculate the standard direct labor hour cost.

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Actual rate= 126,000/20,000= 6.3

-3,000= (SR - 6.3)*20,000

-3,000= SR20,000 - 126,000

123,000/20,000= SR

6.15= Standard rate

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (21,000 - 20,000)*6.15

Direct labor time (efficiency) variance= $6,150 favorable

7 0

3 years ago