Answer:
First National Bank = 14.6%
First United Bank.= = 14.8%
Explanation:
<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>
It can be calculated as follows:
EAR = ( (1+r)^(n) -1) × 100
r -interest rate per period
n- number of period
EAR - Effective annual rate
First National Bank
r - interest rate per month = 13.7%/12 = 1.141%
number of period = 12 months
EAR =( (1+011141)^(12) - 1) × 100
= 0.145938395 × 100
= 14.59
= 14.6%
First United Bank.
r- interest rate per quarter - 14%/4 = 3.5% per quarter
n- number of quarters = 4
EAR = ((1+0.035)^(4)- 1) × 100
= 0.147523001 × 100
= 14.8%
It's A - fear. <span>This text exploits human fears for unpredictable events: car accident, illness, handicap etc</span>
Answer:
Some existing firms will exit the industry.
Explanation:
Because the market is in loss
loss=(ATC-P)*Q
ATC>P..............given
also, the firm is in working condition because it is having the price above AVC.
Because of loss some firms in long run discourage to work and leave the market.
= Cash flow from assets - change in net working capital + net capital spending
= - $ 247,500 - $ 124,000 + $ 950,000
= $ 578,500
