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skad [1K]
3 years ago
8

You have an APR of 7.5% with continuous compounding. The EAR is _____.

Business
2 answers:
snow_lady [41]3 years ago
6 0

Answer:

c. 7.79%

Explanation:

EAR = e^.075 - 1 = 7.79%

sineoko [7]3 years ago
6 0

Answer:

C. 7.79%  

Explanation:

EAR = exp(APR) - 1

        = exp(0.075) - 1

        = 0.0779

Therefore, The EAR is 7.79%

You might be interested in
Which of the following statements is CORRECT? a. The bid price in a hostile takeover is generally above the price before the tak
just olya [345]

Answer:

a.

Explanation:

Based on all the answers that were provided the statement that is correct is that the bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail. Which pretty much explains itself, except for that a hostile takeover is when a person or another business tries to purchase a business by going directly to the shareholders themselves.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
If the absolute value of the own price elasticity of demand is greater than 1, then demand is said to be:
OLEGan [10]

Answer:

A. elastic.

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Demand is elastic when a change in price leads to a change in quantity demanded. The coefficient of elasticity for elastic demand is usually greater than one.

Demand is inelastic when a change in price has no effect on quantity demanded.

The absolute value of the coefficient of elasticity for inelastic demand is usually less than 1.

Demand is unitary when a change in price leads to an equal proportional change in quantity demanded.

The absolute value of the coefficient of elasticity for unitary demand is usually equal to one .

I hope my answer helps you.

8 0
3 years ago
The cash account for Stone Systems at July 31, 20Y5, indicated a balance of $17,750. The bank statement indicated a balance of $
omeli [17]

Answer:

The bank reconciliation statement is as shown below:

                                                Amount in $

Balance per bank statement     33,650.00  

Deposit in transit                               9,150.00  

Outstanding check                    (17,865.00)

Bank charges                                   80.00  

Note collected                             (6,095.00)

Returned check                                (540.00)

Check drawn                             <u>   (630.00) </u>

Book balance                             <u> 17,750.00</u><u> </u>

Explanation:

Deposit in transit has been recorded in the books, thus the addition to the bank balance. Bank charges have been deducted from the bank balance but not in the cash book hence it is added back. Note collected is yet to be recognized in the books hence the deduction from the bank balance.

Amount recorded from the check returned is more than the actual by $540 hence the deduction. The check drawn has been over charged by the bank to the tune of $630 hence the deduction.

5 0
4 years ago
What is the total manufacturing overhead assigned to the current order for Men's Razors if the firm uses a volume-based plant wi
Brut [27]

Answer:

$7,200

Explanation:

The computation of the total manufacturing overhead assigned is shown below:

= ($168,640 + $127,840 + $554,400 + $1,078,000) ÷ $514,368

= 375% per direct-labor dollar.

Now  

= $514,368 ÷ 8,037

= $64 per DL hour.

And,  

= $64  × 30 direct labor hours

= $1920.

So,  

Manufacturing overhead is

= 1920 × 375%

= $7,200

8 0
3 years ago
A bond has a $1,000 par value, 20 years to maturity, and a 5 nnual coupon and sells for $860. What is its yield to maturity (ytm
o-na [289]

Its annual compound yield to maturity (YTM)  is $881.00

An annual compound hobby is calculated by multiplying the initial main amount by one plus the once-a-year hobby fee raised to the wide variety of compound durations minus one. A hobby may be compounded on any given frequency agenda, from continuous to every day to annually.

"12% hobby" approach that the hobby fee is 12% in keeping with year, compounded annually. "12% interest annual compound monthly" manner that the hobby charge is 12% in line with the year (no longer 12% consistent with month), compounded month-to-month. Consequently, the hobby price is 1% (12% / 12) in line with the month.

A compound hobby is the addition of a hobby to the principal sum of a mortgage or deposit, or in other phrases, interest on essential plus interest.

First, find YTM

N = 20

I = YTM

PV = -860

PMT = 50

FV = 1000

YTM = 6.245%

The price after 5 years is nothing but the future value of the bond after 5 years

N = 5

I = YTM = 6.245

PV = -860

PMT = 50

FV = $881

So the answer is $881.00

Learn more about annual compound here brainly.com/question/24274034

#SPJ4

8 0
2 years ago
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