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Paha777 [63]
4 years ago
12

Which of the following statements is CORRECT? a. The present value of a 3-year, $150 annuity due will exceed the present value o

f a 3-year, $150 ordinary annuity. b. If a loan has a nominal annual rate of 8%, then the effective rate can never be greater than 8%. c. If a loan or investment has annual payments, then the effective, periodic, and nominal rates of interest will all be different. d. An investment that has a nominal rate of 6% with semiannual payments will have an effective rate that is smaller than 6%.
Business
1 answer:
lorasvet [3.4K]4 years ago
5 0

Answer:

Statement a. is correct.

Explanation:

The effective annual rate is always higher than the nominal interest rate, as the formula is clear for any number of periods, for any interest rate:

Effective Annual Rate of return = (1 + \frac{i}{n})^n - 1

Further if we calculate the present value of annuity due and ordinary annuity assuming 6 % interest rate, then:

Present value of annuity due =

(1 + 0.06) \times 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )

= 1.06 \times $400.95

= $425.0089

Present value of ordinary annuity = 150 \times (\frac{1 - \frac{1}{(1 + 0.06)^3} }{0.06} )

= $150 \times 2.6730

= $400.95

Therefore, value of annuity due is more than value of ordinary annuity.

Statement a. is correct.

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Anna007 [38]

Answer:

The answer is: snowball sampling technique

Explanation:

Snowball sampling is used when researchers (or research participants) recruit other participants for a study. Usually it is used when participants are hard to find. The term snowball refers to the idea that once the snowball starts rolling, it will begin to pick up more snow on the way down, increasing in size.

3 0
4 years ago
Maurice Corporation has two major business segments; Philippe and Chip. In April, the Philippe business segment had sales revenu
kati45 [8]

Answer:

b.) $140,000

Explanation:

The computation of the segment margin is shown below:

Sales Revenue                                                 $500,000

Less: Variable Expenses                                 ($280,000)

Contribution Margin                                        $220,000

Less: Traceable fixed Expenses                     ($80,000)

Segment margin                                             $140,000

By deducting the variable expense from the sales we can get the contribution margin and after that the fixed cost is deducted from the contribution margin so that the segment margin could come

3 0
3 years ago
9. The least risky method by which firms conduct international business is: a franchising b. acquisitions of existing operations
TEA [102]

Answer:

c. international trade

Explanation:

Options A and E are wrong because franchising and licensing businesses need to pay a special commission or extra expense to do the business. In that case, if the first company faces any disreputed problem due to the food, it is challenging for other franchisees to operate. Licensing business needs a massive cost at the start of the market.

Options B and D are wrong because acquisitions of existing operations or establishing a new subsidiary require high investment.

<em>Option C</em> is correct because international trade can take place at any time. There is a little cost when the trading period starts. Otherwise, there are not many costs. So, it is a less risky method.

4 0
3 years ago
The Pita Pit borrowed $198,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest
pantera1 [17]

Answer:

$3,960

Explanation:

The Borrowed amount is $198,000 on November 1, 2021.

The interest expense  at December 31, 2021 is calculated as shown below:

I=PRT

R=12%=0.12

P=$198,000

T=2 Months=(2/12) year

I=198,000*0.12*(2/12)

I=$3960

The correct option will be "B. $3,960."

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3 years ago
Melissa has been working to develop drought-resistance seeds that require little water to grow and which produce grain. she want
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