1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amm1812
3 years ago
8

The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the presen

t and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity?
Interest Rates
Nominal rate 4.40%
Periodic rate 1.10%
Effective annual rate 4.47%
Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 4%. But the bank is compounding daily. What is the effective interest rate that Rahul would pay for the loan?
a. 4.081%
b. 4.202%
c. 3.959%
d. 4.395%
Another bank is also offering favorable terms, so Rahul decides to take a loan of $22,000 from this bank. He signs the loan contract at 9% compounded daily for nine months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.)
a. $24,477.81
b. $24,948.54
c. $23,536.36
d. $24,007.09
Business
1 answer:
Anastasy [175]3 years ago
3 0

Answer:

1. a. 4.081%

2. c. $23,536.36

Explanation:

1. Periodic rate=(4.4%/4) = 1.1%

EAR=(1+APR/m)^m-1

where m=compounding periods

= (1+0.044/4)^4-1

= 1.011^4 - 1

= 1.04473133864 - 1

= 0.04473133864

= 4.47%

EAR=(1+APR/m)^m-1

where m=compounding periods

=(1+0.04/365)^365-1

= (1+0.00010958904)^365 - 1

= 1.00010958904^365 - 1

= 1.04080849272 - 1

= 0.04080849272

= 4.081%

2. A=P(1+r/365)^365*n

where  A=future value, P=present value, r=rate of interest, n=time period.

= 22000*(1+9%/365)^(9/12*365)

= $23,536.36

You might be interested in
Manten is a popular brand of hiking boots. Its advertisements emphasize the experience of conquering unfamiliar terrain in the w
Helga [31]

Answer: Transformational advertising  

Explanation:

From the given case/scenario, we can state that this approach is an example of Transformational advertising. Transformational advertisement is referred to as or known as advertising which tends to associate experience of consuming advertised brand in association with unique parts of the psychological characteristics that are not typically associated with brand or the experience.

3 0
3 years ago
Use this image to answer the following question. The ice cream shop needs about two pounds of cocoa for each gallon of chocolate
navik [9.2K]
I think this is a trick question. Say, there are 2 pounds of cocoa / 1 gallon of chocolate ice cream. But then the problem only mentions the production of eight gallons of <em>strawberry</em> ice cream, not chocolate ice cream.

However, if they're somehow related (like they are made from the same machine), then you need 16 pounds of cocoa to produce 8 gallons of chocolate ice cream. 
3 0
3 years ago
Penny is paid a gross wage of $2,648.00 on a monthly basis. She is single and is entitled to 2 withholding allowances. How much
Damm [24]

Answer:

The combined wage bracket tables in Exhibits 9-3 and 9-4 is missing hence I will use 2014 tax year

answer :

a) Federal income tax withheld

 = 75.6 + ( 1989.60 - 944 )*15%  = $232.44

b) social security

 6% * 1989.6 = $119.38

c) Medicare

1.45% * 1989.6 = $28.85

Explanation:

For a single individual

Two withholding allowance = $329.20 * 2  = $658.40

Gross Pay = $2648

withholding allowance = $658.40

Subject to withholding = $2648 - $658.40 = $1989.60

a) Federal income tax withheld

 = 75.6 + ( 1989.60 - 944 )*15%  = $232.44

b) social security

 6% * 1989.6 = $119.38

c) Medicare

1.45% * 1989.6 = $28.85

6 0
3 years ago
When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it
nikitadnepr [17]

Answer:

The answer is comparative advantage.

Explanation:

Comparative advantage is when a country is able to produce goods and services at a lower opportunity cost than its trading partners. That means a labour can produce more goods per hour than a labour in its trading partner's country.

A country with a comparative advantage will be able to charge lower price for what she is specialising on.

3 0
3 years ago
The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, inten
vfiekz [6]

Answer:

brand

Explanation:

The American Marketing Association defines a brand as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors."

According to Kotler a brand is a name a sign or combination of these to distinguish one product from the others. People often associate and develop relationships  with the brand so that they can trust rely and depend on for future purchase.

According to Kotler's definition a brand must be distinguished from the other products and then it must have a desirable place in the minds of the consumers. That is the brand is as good as the customers think.

6 0
3 years ago
Other questions:
  • Shared values among employees are the glue of successful management <br> a. True <br> b. False
    5·1 answer
  • Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Eq
    6·1 answer
  • You are a marketing director for a large food manufacturer. lately, you have noticed that you are spending a great deal more tim
    13·1 answer
  • Which of the following is a feature of a credit card ?
    10·1 answer
  • Branch Corporation issued $12 million of commercial paper on March 1 on a nine-month note. Interest was discounted at issuance a
    6·1 answer
  • The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional inves
    7·1 answer
  • Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming the
    8·1 answer
  • The price of a basket of goods is $2000 in the U.S. If purchasing power parity holds, and the dollar buys two units of some coun
    6·1 answer
  • Drag the tiles to the boxes to form correct pairs.
    5·1 answer
  • What is 2 + 5<br> help<br> pls
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!