Answer:
$4.50
Explanation:
In order to make a profit from the futures contracts, it would be appropriate to take a long position in the June futures contract(buy) and take a short position in the December futures contract.
The investor would borrow $60 today which would necessitate paying back $60 plus a half-year in interest payment.
loan repayment=$60*(1+5%/2)=$ 61.50
In December, sell crude oil at $66 and repay the loan principal and interest
profit=$66-$61.50=$4.50
The answer was letter c. To produce more units of a good while using fewer resources, hope this helped
Answer:
Hence the null hypothesis is not rejected.
We conclude that productivity objective (in dollars) is not better than $75,000 per employee.
Explanation:
Single sample t-test ( upper tail test)
N=20
Mean =75500
Sd=18968.117
DF= 20-1=19
Table value of t at 0.05 level of significance =1.7291
Calculated t=0.1179 < table value 1.7291
The null hypothesis is not rejected
We conclude that productivity objective (in dollars) is not better than $75,000 per employee
Answer:
The answer is 0.91%
Explanation:
Solution
Farmers Bank:
Lending Amount =$50,000
Nominal rate (APR) =5.0%
Interest paid = Quarterly (4 periods in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1 +5.0%/4)^4 -1
=(1+ 0.0125)^4 -1
=(1.0125)^4 -1
=1.05094533691406 -1
= 0.5094533691406
= 5.0954%
Therefore the effective annual rate in farmer bank is 5.0954%
Merchants Bank:
Lending Amount =$50,000
Nominal rate (APR) =6.0%
Interest paid = Annually (1 period in a year)
Thus
The effective annual rate (EAR) = (1 +APR/Number of compounding periods a year)^(number of compounding periods a year) -1
=(1+ 6.0%/1)^1 -1
= (1+0.06)^1 -1
=(1.06)^1 -1
=1.06-1
=0.06 or 6.0000%
Therefore the effective annual rate of the Merchant bank is 6.000%
Now,
The difference between the annual rates=EAR merchant bank -EAR Farmers bank
=6.0000% - 5.0945%
=0.9055% or 0.91%
Therefore the difference between the effective annual rates charged by the two banks is 0.91%
