The correct effective rate of interest for the loan having a compound interest of 4.90% with 6 compounding throughout the year will be 5.01%. So, the correct option is C.
Effective compound interest is calculated by deriving the values in the formula of annuity over the loan amount, which will be payable at the end of the year.
<h3>Calculation of effective rate of interest </h3>
- Effective rate of interest is the actual rate of interest paid by Jessica when she thinks the interest paid by her is for the year without taking into consideration the compounding of such loan.
- As no information regarding the principal and no. of years is given, it has been assumed that the loan amount is $100 and the loan is taken for the period of one year.
- The formula for calculation of effective rate of interest is as below,
- Putting the values in the formula, we get
- So the effective rate of interest is calculated as 5.01%
Hence, the correct option is C that the effective rate of interest is 5.01% on the interest rate of 4.90% compounded 6 times during the year.
To know more about rate of interest, click the link below.
brainly.com/question/4626564
Answer:
B. Getting caught in the transition period without a clear strategic advantage.
Answer:
Part A) D. $137,500
Part B) C. $140,250
Explanation:
Part A) The computation of annual salary payment is shown below:-
Annual salary = Donation made × Interest rate
= $2,500,000 × 5.5%
= $137,500
So, for computing the annual salary we simply multiply the donation made with interest rate.
Part B) The computation of starting salary is shown below:-
Starting salary = Annual salary + Increased annual salary
= $137,500 + 2%
= $140,250
Therefore for computing the starting salary we simply added the annual salary with increased annual salary.
Answer: E) Many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.
Explanation:
The scenario that'll make the labor union accept Richard's suggestion to lower the wages is when many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.
The reduction in wages by Xanadu Industries wouldn't bring about loss.of workers as the manufacturing plant is the only industry in the area. Another way the company can reduce cost is through the reduction in its raw materials cost. If the employees aren't satisfied due to the reduction in wages, they can look for employment at Utopia Industry.
Therefore, the correct option is E.
Answer:
Generally, however, you should expect a slight markup on at least some of the items you buy via Instacart. That makes it extra important to save money where you can. Ways to save on Instacart online grocery orders. When using Instacart, you can expect to pay a bit extra for the convenience. However, there are still ways to save.
Explanation:
