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arlik [135]
3 years ago
12

Suppose you have a choice between investing in a savings account that pays an 8.6% APR, compounded monthly (Bank Monthly) and on

e that pays an 8.5% APR, compounded daily (Bank Daily). Using only effective annual rates, which bank would you prefer?
Business
1 answer:
Maru [420]3 years ago
6 0

Answer:

8.6% APR, compounded monthly

Explanation:

Effective annual rate = ( 1 + periodic interest rate)^m - 1

8.6% APR = (1.007167)^12 - 1 = 0.089472 = 8.95%

m = number of compounding = 12

periodic interest rate = 8.6% / 12 = 0.717%

8.5% APR = (1.000233)^365 - 1 = 0.088706 = 8.87%

m = number of compounding = 365

periodic interest rate = 8.5% / 365 = 0.02329%

I would prefer the 8.6% APR, compounded monthly because the effective annual rates are higher

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Colter Steel has $5,400,000 in assets. Temporary current assets $ 2,800,000 Permanent current assets 1,590,000 Fixed assets 1,01
Mademuasel [1]

Answer:

Explanation:

Long term Financing = Permanent Current Assets + Fixed Assets

Long term Financing = $1,590,000 + $1,010,000  = $2,600,000

Short Term Financing = Temporary Current Assets  = $2,800,000

Long Term Interest Expense = $2,600,000 * 0.17 = $442,000

Short Term Interest Expense = $2,800,000 * 0.12 = $336,000

Total Interest Expense = $442,000 + $336,000  = $778,000

Earnings before Taxes = Earnings before Interest & Taxes - Interest Expense

Earnings before Taxes = $1,140,000 - $778,000  = $362,000

Earnings after Taxes = Earnings before Taxes * (1 – Tax rate)

Earnings after Taxes = $362,000 * (1 – 0.40)  = $217,200

3 0
3 years ago
Weather speech is going to be delivered before one or 100 people this speaker should
melomori [17]
Be prepared for the worse, be expected for 100 or even 1000 people to show, even though it might not happen. Be prepared! Run your lines to the point to where they are drilled into your brain and most of all stay calm. You definitely do not want to have a panic attack while your giving your speech. Find a familiar face in the crowd and focus on them, if there are none, imagine everyone naked. Be energetic and do not drone on, make it exciting.
Good luck
7 0
3 years ago
Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, commun
dem82 [27]

Answer:

True

Explanation:

The efforts made by company to contribute towards sustainable development and improvement of society is called Corporate Social Responsibility(CSR).

By practising social responsibility it tries to be conscious of the social, economic and environmental impact it is having on the society. If a company is engaged in CSR, it means that a company is making positive contribution to environment and society.  Philanthropy is one way in which company indulges in CSR. It is helpful for both the corporation and the employees. It helps the company to form stronger bond with employees and boosts their morale.  

7 0
3 years ago
In a system of 100-percent-reserve banking, a. banks do not accept deposits. b. banks can increase the money supply. c. banks do
zheka24 [161]

The correct option is C). banks do not influence the supply of money.

<h3>What is 100-percent-reserve banking?</h3>

100-percent-reserve banking, is a system of banking, in which banks only lend from time deposits instead of lending demand deposits.

In a system with 100 percent reserve banking, banks cannot make the loans and do not influence the supply of the money.

This system is also known as full-reserve banking.

Learn more about the 100-percent-reserve banking here:-

brainly.com/question/7295577

#SPJ1

8 0
1 year ago
When an organization has a diverse set of employees that can provide insight and cultural sensitivity, this should improve the c
Alchen [17]

Answer:

Higher Creativity in Decision Making due to diversity and understanding of the environment in which it operates.

Explanation:

The reason is that the diversity brings access to great pool of hidden resources which we can utilize in a number of ways. People are observer and can play a vital role in the designing of strategic stance of the company. This strategy will influence company's financial position in future. So diversity helps in understanding of environment (environmental analysis) and informed decision making.

7 0
3 years ago
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