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4 years ago

If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?

Business

1 answer:

irina1246 [14]4 years ago

5 0

Answer:

the effective annual interest rate is 12.55 %

Explanation:

The computation of the effective annual interest rate is shown below:

Effective annual interest rate is calculated by using the following formula

= {(1 + interest ÷ number of compounding period)^number of compounding period} - 1

= (1 + .12 ÷ 4)^4-1

= (1.03)^4 - 1

r = 1.1255 - 1

r=.1255

hence, the effective annual interest rate is 12.55 %

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The owner of Chips etc. produces two kinds of chips: lime (L) and vinegar (V). He has a limited amount of the three ingredients

Sloan [31]

Answer:

Objective function (maximize)

$Profit=0.40L+0.50V$

Constraints

- Availabitily of salt: $2L+3V\leq4800$

- Availability of herbs: $1C+2V\leq 2000$

- Availability of flour: $6C+8V\leq9600$

Explanation:

This a linear programming problem. We have an objective function (in this case it is the profit) that we want to optimize, but complying with constraints (in this case, the availability of ingredients).

The objective function can be defined taking into account the profits of the two kind of chips:

$Profit=0.40L+0.50V$

The constraints can be expressed taking into account the amount of ingredients every unit of chip needs and stating that it has to be less or equal to the availability of this ingredient:

- Availabitily of salt:

$2L+3V\leq4800$

- Availability of herbs

$1C+2V\leq 2000$

- Availability of flour

$6C+8V\leq9600$

With these expressions the linear programming problem can be solved.

3 0

3 years ago

Last year, Hampton Corporation had sales of $1,855,000. The firm's costs of goods sold amounted to 70% of sales. Hampton also pa

jeka57 [31]

Answer:

Tax Liability = $74,550

Explanation:

Particular Amount

Sales $1,855,000

Less: COGS(70% of sales) $1,298,500

Gross Profit $556,500

Less: Operating expenses $225,000

Operating profit $331,500

Add: Taxable dividend income $40,000

Add: Capital gain $10,000

Less: Interest Expenses $26,500

Net Taxable Income $355,000

Tax rate = $355,000 * 21%

Tax Liability = $74,550

Note: 21% is the Tax rate approved by the Tax cuts and Job Acts of 2017.

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4 years ago

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Brrunno [24]

Answer:

over 1 year

Explanation:

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It should be noted that Under IRS regulations, a gain or loss upon current disposition of an asset is first considered to be long term if the asset has been held for over 1 year.

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3 years ago

Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecti

Anika [276]

Answer:

With respect to the employment-at-will doctrine, this is "An exception based on public policy"

Explanation:

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3 years ago

A business’s total revenue for a specified period is $500,000, its operating expenses are $50,000, and its net profit if $150,00

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Answer:

your answer is 300,000

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3 years ago