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Fed [463]
3 years ago
5

Assume Brad has a choice between two deposit accounts. Account WH has an annual percentage rate of​ 7.35% with interest compound

ed continuously. Account MW has an annual percentage rate of​ 7.45% with interest compounded monthly. Which account provides the highest effective annual​ return?
Business
1 answer:
inessss [21]3 years ago
8 0

Answer: Account MW which compounds monthly provides a higher effective rate at 7.71%

Explanation:

Use the Effective Interest rate formula to see which offers the higher return.

Account WH;

Compounded continuously;

= e^(interest rate) - 1

= e^7.35% - 1

= 7.63%

Account MW

Compounded per month

= (( 1 + interest / compounding period) ^ period) - 1

=  (( 1 + 7.45%/12) ^ 12) -1

= 7.71%

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Barrington Bears has developed the following sales forecasts for the next few months. January 500, February 600, March 720, Apri
Oduvanchick [21]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Barrington Bears has developed the following sales forecasts for January 500 units.

BB has 80 bears on hand on Dec. 31. The normal ending inventory policy is to hold 20% of next month’s sales.

Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month.

First, we need to calculate the production for January.

Sales= 500 units

Ending inventory= (600*0.2)= 120 units

Beginning inventory= 80 (-)

Total= 540 units

Conversion costs= direct labor + manufacturing overhead

Direct labor= [(40/60)*540]*$18= $6,480

Variable overhead= 21*360 hours= $7,560

Fixed overhead= $25,000

Total conversion costs= $39,040

5 0
3 years ago
Gargoyle Unlimited Gargoyle Unlimited is planning to issue a zero coupon bond to fund a project that will yield its first positi
asambeis [7]

Answer:

The answer is 6.72%

Explanation:

Calculating the imputed rate from a discount bond as follows:

( 1 + i  )^n = FV / PV  

( 1 + i )^3 = FV / PV,   here FV= 1000 and PV= 727.25

so putting values in equation we have:

( 1 +i )^3 = 1000 / 727.25  

( 1 + i )^3 = 1.375  

solving for i

( 1 + i) = 1.375^1/3  

( 1 + i ) = 1.112  

i = 0.112 before tax rate

0.112 * (1 - tax rate) = after tax interest rate

0.112 * .60 = 0.0672 = 6.72%

thus the expected after tax cost of this debt issue is 6.72%

5 0
3 years ago
Explain how a person who pursued a career in accounting could succeed as an entrepreneur.
rosijanka [135]

Answer:

own their own accounting business

4 0
3 years ago
What is one difficulty a salesperson may face when closing a sale?
Anika [276]
The customer changing their mind or the customer not having enough money
4 0
3 years ago
If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the bal
Zina [86]

Answer:

The balance on the capital account=-$142 billion

Explanation:

The formula for determining the balance on the capital account can be expressed as;

CU+FA+CA+SD=0

where;

CU=balance on the current account

FA=balance on the financial account

CA=balance on the capital account

SD=statistical discrepancy

In our case;

balance on the current account=$346 billion

balance on the financial account=-$204 billion

balance on the capital account=unknown=c

statistical discrepancy=0

replacing;

346+(-204)+c+0=0

142+c=0

c=-142

The balance on the capital account=-$142 billion

6 0
3 years ago
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