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
JulijaS [17]
3 years ago
9

If you can borrow funds from a finance company at 12 percent compounded weekly​, the EAR for the loan is nothing​%. ​ (Round to

two decimal​ places.) If you can borrow funds from a bank at 13 percent compounded semiannually​, the EAR for the loan is nothing​%. ​(Round to two decimal​ places.) Based on the findings​ above, which alternative is more​ attractive? ​ (Select the best choice​ below.) A. The loan from the bank at 13 % compounded semiannually B. The loan from the finance company at 12 % compounded weekly
Business
1 answer:
arlik [135]3 years ago
4 0

Answer:

If compounded weekly =

No of weeks in a year=52

N= 52

EAR= (1+I/N)^N -1

=(1+0.12/52)^52 -1

=0.127=12.7% EAR

If compounded semiannually

N= 2

EAR= (1+0.13/2)^2 -1

=13.42%

It is better to borrow at 12% compounded weekly as the EAR is lower than 13% compounded semi annually.

Explanation:

You might be interested in
Which of the following can impact your credit score
stealth61 [152]

Answer: B. your Debt to Credit ratio

Explanation:

Your debt to credit ratio is important to lenders because it shows whether you spend wisely when given debt.

Debt to credit is measured as the percentage of debt you have given your credit limit. If for instance you have a credit card limit of $50,000 and have debt of $10,000, your debt to credit ratio is:

= 10,000/50,000 * 100

= 20%

Generally the lower this ratio, the better the contribution to your credit score.

7 0
3 years ago
Shelley wants to cash in her winning lottery ticket. She can either receive sixteen $100,000 semiannual payments starting today,
Arte-miy333 [17]

Answer:

$1,256,000

Explanation:

Data provided in the question:

Number of semiannual payments received = 16

Amount of each payment = $100,000

Annual interest rate = 6%

Thus,

Semiannual interest rate = \frac{6\%}{2} = 3% = 0.03

Now,

Payment = Amount × \frac{(1-(1+i)^{-n})}{i}

or

Payment = $100,000 × \frac{(1-(1+0.03)^{-16})}{0.03}

Payment = $100,000 × 12.56

or

Payment = $1,256,000

5 0
3 years ago
Read 2 more answers
Consider three investment plans at an annual rate of 9.38%.
PolarNik [594]

Answer:

Investor A = $545216 .

Investor B = $352377

Investor C = $897594

Explanation:

Annual rate ( r )  = 9.38%

N = 41 years

<u> Calculate the balance at age of 65</u>

1) For Investor A

balance at the end of 10 years

= $2000 (FIA, 9.38 %, 10) (1 + 0.0938) ≈ $33845

Hence at the end of 65 years ( balance )

= $33845 (FIP, 9.38 %, 31) ≈ $545216 .

2) For investor B

 at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 31) = $322159 x (1 + 0.0938) ≈ $352377

3) For Investor C

at the age of 65 years ( balance )

= $2000 (FIP, 9.38%, 41) = $820620 x (1 + 0.0938) ≈ $897594

7 0
2 years ago
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc
kicyunya [14]

Answer:

a) The expected return of equally weighed portfolio is 14.23%

b) The expected return of equally weighed portfolio is 16.45%, hence Variance = 1.596457%

Explanation:

See workings of a and b attached in a form of spreadsheet.

7 0
3 years ago
Which of the following statements is CORRECT? If Disney issues additional shares of common stock through an investment banker, t
nata0808 [166]

Answer:

The answer is: As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

Explanation:

Money market transactions involve financial instruments with high liquidity and short-term maturities. Usually the securities have a one year or less maturity date.

A few examples of commonly traded securities are:

  • Banker’s Acceptance
  • Treasury Bills
  • Repurchase Agreements
  • Certificate of Deposits  
  • Commercial Papers
8 0
3 years ago
Other questions:
  • What are some benefits to private ownership? Select three answers.Private ownership provides offices for government workers.Priv
    12·2 answers
  • Jake is in the stands at a football game with his girlfriend. He decides that he needs to ask her something very personal, so he
    8·2 answers
  • According to harvard professor linda hill, over the first year of becoming a new manager one of the keys to success is to transf
    15·1 answer
  • Which of the following measures the amount of data that might be potentially lost as a result of a system failure? Recovery Time
    9·1 answer
  • While generally accepted accounting principles do allow flexibility, standards of _________, ________, and ________ must always
    15·1 answer
  • A client with newly diagnosed hypertension asks what to do to decrease the risk for related cardiovascular problems. Which risk
    7·1 answer
  • Samuel's Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 9.00% so that
    12·1 answer
  • Suppose a coalition of students from Lincoln High School succeeds in persuading the local government to impose a price ceiling o
    12·1 answer
  • On January 1, 2020, HD Corp. paid $60,000 and issued a 5-year noninterest bearing note payable with a face value of $120,000 in
    8·1 answer
  • lee reed, marisa a. pagnattaro, et al., the legal and regulatory environment of business (18th or 19th edition mcgraw-hill irwin
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!