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Kaylis [27]
3 years ago
10

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

Business
1 answer:
irina1246 [14]3 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 demand for grapesgrapes is highest during summer and lowest during winter. Yet grapegrape prices are normally lower in summe
anastassius [24]

Answer:

The correct answer is: D. The supply increases more than the demand increases.

Explanation:

The law of supply and demand is the basic principle on which a market economy is based. This principle reflects the relationship between the demand for a product and the quantity offered of that product taking into account the price at which Sell ​​the product.

Thus, depending on the price in the market of a good, the bidders are willing to manufacture a certain number of that good. Like the plaintiffs they are willing to buy a certain number of that good, depending on the price. The point where there is a balance because the plaintiffs are willing to buy the same units that the bidders want to manufacture, for the same price, is called the market equilibrium or breakeven point.

According to this theory, the law of demand states that, keeping everything else constant, the quantity demanded of a good decreases when the price of that good increases. On the other hand, the law of supply indicates that, keeping everything else constant, the quantity offered of a good increases when its price does.

6 0
3 years ago
Abdul, a manager at chrysum corp., was assigned the task of overseeing the operations in a foreign office for a week. before lea
PSYCHO15rus [73]

In the scenario above, the technology that Abdul used is an example of voice mail communication. This method is employed by having voice messages to be stored in an electronic manner in which is intended to be retrieved by those recipients who are going to contact the person using this method.

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3 0
3 years ago
What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.20%? The bond has 12 years to matu
Troyanec [42]

Answer:

$544.265

Explanation:

Given:

FV = $1,000

Yield to maturity = 5.2%

N = 12 years

Required:

Find the value of the zero coupon bond.

Use the formula:

PV = FV * PVIF(I/Y, N)

Thus,

PV = 1000 * PVIF(5.2%, 12)

= 1000 * 0.544265

= $544.265

The value of the zero coupon bond is $544.3

7 0
3 years ago
Calculate the net debt of the company based on the information below:
galina1969 [7]

Answer:

$28,300

Explanation:

Calculation to determine the net debt

Using this formula

Net debt=(Short-term interest bearing debt +

Long-term interest bearing debt+Non-interest bearing liabilities)-Cash and equivalents

Let plug in the formula

Net debt=($ 3,000 +$25,000+$ 1,500)-$ 1,200

Net debt=$29,500-$1,200

Net debt=$28,300

Therefore Net debt is $28,300

6 0
3 years ago
Becker Products is a manufacturer and distributor numerous food products. The company recently reported earnings per share of $5
atroni [7]

Answer:

The intrinsic value = $469.15

Explanation:

<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>

Price = EPS × P/E ratio

It is appropriate to use the industry average price-earning ratio   for the purpose of this valuation.

The intrinsic value = 19.75 × $5.50 = $469.15

3 0
3 years ago
Read 2 more answers
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