Answer:
3.63%
Explanation:
Semiannual coupon payment
= $100 ÷ 2 = $50[($1,000 × 10%) ÷ 2]
The total number of compounding period = 2periods per year × 3 years = 6 periods.
By entering the following data on a financial calculator, rate is calculated as 1.81%.
Semiannual yield = 1.81%
Annual yield = 1.81% ×2 = 3.63%
Answer:
No, because the second method has lower total costs of production.
Explanation:
In a bid to make profits businesses must always compare different processes and choose the cheapest one.
This will eventually reflect in the profitability of the business.
In this instance let's get the cost of each process.
Fabric costs $110 a bolt and labor costs $20 an hour.
The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour
Total cost = (100 bolts * 110) + (1500 * 20)
Total cost = $41,000
For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour
Total cost = (150 *110) + (1000 * 20)
Total cost = $36,500
As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker
