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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:

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ozzi

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increase price per ticket in proportion to cost incurred.

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3 0
3 years ago
Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipmen
Rom4ik [11]

Answer:

6.1 y

Explanation:

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New equipment÷(Annual net income +Depreciation expense)

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Annual net income $90,000

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$1,400,000 ÷ ($90,000 + $140,000)

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5 0
3 years ago
Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $26.10 million cost
AlladinOne [14]

Answer:

Original Cost = $26.10

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Unamortized Value = $26.10 million - $11.6 million

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Remaining Life = 2 Years

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                    Journal Entry

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5 0
2 years ago
Storax Manufacturing purchases equipment for $50,000. The equipment has an expected life of 10 years and an estimated salvage va
Mashcka [7]

Answer:

6.25 years

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3 years ago
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Inside making plans, there are 4 important categories: strategic, tactical, operational, and contingency planning. Strategic planning is a manner that groups use to determine their dreams and targets.

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3 0
1 year ago
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