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GarryVolchara [31]
3 years ago
14

Your bank account pays interest with an EAR of 4 %. What is the APR quote for this account based on semiannual​ compounding? Wha

t is the APR with monthly​ compounding?​ (Note: Be careful not to round any intermediate steps less than six decimal​ places.)
Business
1 answer:
LenKa [72]3 years ago
8 0

Answer:

APR would be 3.9607805% compounded semiannually

APR would be 3.9284877% compounded monthly

Explanation:

We calcualte consider these rates should be inancially equivalent to an equivalent rate of 4% annually.

<u>The semiannual compounding will capitalize two times:</u>

(1+APR/2)^2 = 1+EAR\\(\sqrt{1.04} -1) \times 2 = 0.039607805

<u>The monthly will capitalize 12 times per year:</u>

(1+APR/12)^12 = 1+EAR\\(\sqrt[12]{1.04} -1) \times 12 = 0.039284877

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Answer:

The alternative that should be chosen assuming identical replacement is:

Alternative B.

Explanation:

a) Data and Calculations:

Alternatives:

                                                A            B

First Cost                           $5,000     $9,200

Uniform Annual Benefit     $1,750      $1,850

Useful life, in years                4              8

Rate of return                       7%            7%

Annuity factor                   3.387          5.971

Present value of annuity $5,927.25 $11,046.35

Net cash flow                 $927.25     $1,846.35

b) Alternative B yields a higher return than Alternative A.  Since the two alternatives are based on the same rate of return, Alternative B will bring in a higher annual benefit, even when discounted to the present value.

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In 20X8, the following pledges were made: $35,000 in unrestricted contributions for use in 20X8; $20,000 in contributions restri
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Explanation:

As the question states what will be the pledges receivable for 20x8 therefore, we will calculate all the pledges:

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Hence, the answer is $455,000 as we take into account all the pledges for the year 20x8.

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Dealer markets are characterized by: no time-consuming search for a fair deal. a guarantee of order fulfillment because the deal
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Answer:

all of the above characterize dealer markets.

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Explanation:

A dealer market is a market where financial dealers post their trading prices (the buying and selling price of stocks, bonds, foreign currency, etc.). The largest dealer market in the US is Nasdaq where stocks are traded electronically. The main difference between a dealer market and a regular auction market like the NYSE is that no bidding takes place since operations are done in a split second.  

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Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou
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Therefore the annual dividend on the preferred stock will be $75,000

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