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GrogVix [38]
3 years ago
8

First Bank offers personal loans at 7.7 percent compounded monthly. Second Bank offers similar loans at 7.4percent compounded da

ily. Which one of the following statements is correct concerning these loans? Assume a 365-day year. Multiple Choice The Second Bank loan has an effective rate of 8.01 percent. The First Bank loan has an effective rate of 7.98 percent. The annual percentage rate for the Second Bank loans is 7.68 percent. Borrowers should prefer the loans offered by First Bank. Both banks offer the same effective rate.
Business
1 answer:
Korolek [52]3 years ago
7 0

Answer:

The First Bank loan has an effective rate of 7.98 percent.

Explanation:

we calcualte the effective rate for both loand and check which statement is correct.

<u>First bank:</u>

(1+\frac{0.077}{12} )^{12} = 1 + r_e

(1+\frac{0.077}{12} )^{12} - 1 = r_e

     1.07977643  - 1 = 0.07977 = 7.98%

<u>Second bank:</u>

(1+\frac{0.074}{365} )^{365} = 1 + r_e

(1+\frac{0.077}{365} )^{365} - 1 = r_e

     1.076798729   - 1 = 0.076798729  = 7.68%

Notice tthis isthe effective rate not the annual percentage rate.

So only the statement abour the first bank effectibe rate is true.

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A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera
ZanzabumX [31]

Answer:

$71,240

Explanation:

The computation of the total gross margin under absorption costing is shown below:

As we know that

Gross Margin = Sales - Variable Manufacturing Cost - Fixed Manufacturing Overhead For Units Sold

Sales (2,740 units × $131) $358,940

Less Manufacturing Costs  

Direct Materials (2,740 units × $44) $120,560

Direct Labor (2,740 units × $19) $52,060

Variable Manufacturing Overhead (2,740 units × $13) $35,620

Fixed Manufacturing Overhead ($85,260 ÷ 2,740 units ÷ 2,940 units) $79,460

Gross Margin                         $71,240

We simply applied the above formula

6 0
3 years ago
What role do entrepreneurs plays in the u.s economy?
shepuryov [24]
1st lets define <span>entrepreneurs - starting his or her own bussiness offering a product, So I'd guess the role they play is the they start new bussiness, create jobs for people in need and they also bring something new to economy. 
    

 I hope I helped you </span>
4 0
3 years ago
"Investment X offers to pay you $5,800 per year for 9 years, whereas Investment Y offers to pay you $8,600 per year for 5 years.
Butoxors [25]

Answer:

Present value of investment X = $41,225.37

Present value of investment Y = $37,233.50

Explanation:

The present value of the cash flows can be found by discounting the cash flows at the discount rate.

This can be found using a financial calculator

Cash flow each year from year 1 to 9 for investment X = $5,800 

Discount rate = 5%

Present value = $41,225.37

Cash flow each year from year one to year 5 for investment Y = $8,600 

Discount rate = 5%

Present value = $37,233.50

I hope my answer helps you

5 0
3 years ago
In the Month of March, Digby Corporation received orders of 128 units at a price of $15.00 for their product Daze. Digby uses th
Montano1993 [528]

Answer:

$1,290

Explanation:

The revenue to be recognized in march is dependent on if the revenue recognition criteria was met in march. These criteria are

  • the cost of goods delivered or service rendered can be measured reliably
  • good/services were delivered/rendered in the month

This is irrespective of whether cash was collected or not under the accrual method.

Given that Digby delivers 86 units in March at a price of $15.00, revenue to be recognized

= 86 * $15

= $1,290

6 0
3 years ago
A maker of soaps and lotions noticed a blind person having difficulty comparing products while shopping in one of her stores. Sh
Darina [25.2K]

Answer:

Proactive

Explanation:

Did the test myself

7 0
2 years ago
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