Emergency funds are used for anything not planned. C is the only one that is “planned” so that has to be the correct answer. C.
Answer: $18,460
Explanation:
Amounts that will go towards the cash account at the end of the year include all actual cash, undeposited checks, bank balances and short term investments.
The Total amount of cash to report will therefore be;
= Currency located at the company + Short-term investments that mature within three months + Balance in savings account + Checks received from customers but not yet deposited + Coins located at the company + Balance in checking account
= 1,050+ 1,950 + 8,500 + 650 + 110 + 6,200
= $18,460
Answer:
Explanation:
The <u>nominal</u> interest rate is quoted by borrowers and lenders-------------
then you <u>can</u> use the APR------------
different compounding periods, then the effective annual rate must------
If a loan or investment uses <u>annual</u> compounding, then the nominal--------
However, if compounding occurs more than once a year, EAR is the effective INOM
Quantitative problem:
Effective annual rate of Bank 2 (assuming its APR is 6%) = (1.015)^4 – 1 = 0.061364
To get the same EAR, Bank 1 should charge per half year 1.061364^(1/2) – 1 = 0.030225
The nominal interest rate (APR)= 0.030225*2 = 0.06045 = 6.05%
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