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julia-pushkina [17]
3 years ago
10

Southwestern Bank offers to lend you $50,000 at a nominal rate of 6.5%, compounded monthly. The loan (principal plus interest) m

ust be repaid at the end of the year. Woodburn Bank also offers to lend you the $50,000, but it will charge an annual rate of 7.0%, with no interest due until the end of the year. How much higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern
Business
1 answer:
Mandarinka [93]3 years ago
7 0

Answer:

0.03%

Explanation:

Southwestern Bank

The Effective annual interest rate of Southwestern bank compounded monthly would be

First step

Calculation for the Effective annual rate of Riverside Bank:

rR = (1 + (0.065/12))^12 = 1.067

Second step

Calculation for the Effective annual rate of Midwest Bank:

rM = (1 + (0.07/1))^1 = 1.07

The effective annual rate of Midwest Bank is higher by :

(1.07 -1.067)

=0.003 % or 0.3%

Therefore the higher or lower is the effective annual rate charged by Woodburn versus the rate charged by Southwestern would be 0.03%

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Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $290,400 and the
timurjin [86]

Answer:

$53,240

Explanation:

We know that,

Break even point = Fixed cost ÷ contribution margin ratio

$290,400 = Fixed cost ÷ 55%

So, the fixed cost = $290,400 × 55% = $159,720

As the variable expense is 45% and we assume the sales is 100%, so the contribution ratio would be 100% - 45% = 55%

Now the margin of safety equal to

= (Expected sales - break even sales) ÷ (expected sales) × 100

25% = (Expected sales - $290,400) ÷ (expected sales) × 100

25% Sales = (Expected sales - $290,400)

So, the expected sales would be

= $290,400 ÷ 75%

= $387,200

Now the actual profit equals to

= Sales - variable expenses - fixed cost

= $387,200 - $174,240 - $159,720

= $53,240

The variable expense is computed below:

= $387,200 × 45%

= $174,240

4 0
3 years ago
Which product is less than 99
Semenov [28]

Answer:

1

Explanation:

hope this helps you please mark me as brainliest

3 0
3 years ago
_____________ involves incorporating brands into movies, television programs, and other entertainment venues in exchange for pay
azamat

Answer:

D) product placement

Explanation:

............ .....

4 0
3 years ago
During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security S
Nataly [62]

Answer:

See the explanation below.

Explanation:

The data in the question are merged and they are separated first before the question is answered as follows:

Security                       Shares                Purchased Cost ($)

Hawking Inc.                   750                           33,375

Pavlov Co.                    2,030                          47,096

The answers and explanation are now as follows:

Hawking Inc. market value = $53 * 750 = $39,750

Pavlov Co. market value = $42 * 2,030 = $85,260

Total market value stock = $125,010

Total cost of stock = $33,375 + 47,096 = $80,471

Unrealized gain from stock = Market value - Cost = $125,010 - $80,471 = $44,539

Galileo Company

Balance Sheet (Selected Items)

December 31, Year 1.

Details                                                                               Amount ($)

Current Assets:

Available-for-sale investments, at Cost.                              80,471

Valuation allowance for available-for-sale investments   <u> 44,539  </u>

Total                                                                                     <u> 125,010  </u>

3 0
3 years ago
When other things remain equal, buyers are expected to stock up from the normal product that they expect its market price to dec
statuscvo [17]

Answer:b) false

Explanation:

They would not want to stock up on something that the market price will decline significantly on, they would do the opposite

7 0
3 years ago
Read 2 more answers
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