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liubo4ka [24]
3 years ago
8

Charter bank pays a 5.00% nominal rate on deposits, with monthly compounding. what effective annual rate (eff%) does the bank pa

y?
Business
1 answer:
mel-nik [20]3 years ago
6 0

In order to compute for the effective annual rate, the working equation would be [( 1 + i/n)^n] – 1.   The i corresponds to the nominal rate while n is the number of compounding periods per year which in this case is 12. The answer would be 5.116%.  

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Which of these is an example of a bank’s commitment to pay? a. Fee arbitration agreement b. A warrant c. Letter of credit d. Bil
igor_vitrenko [27]

Answer:

Letter of credit

Explanation:

A letter of credit is a written guarantee from a buyer's bank to the seller, assuring them of payments from the buyer. Should the buyer fail to honor the payments, the bank commits itself to pay. The letter of credit guarantees the seller that upon meeting some pre- defined conditions, the bank would release to them a specified amount, in the stated currency.

Letters of credit are most suited for international trade. The nature of foreign trade is that buyers and sellers do not know each other and operate under different laws. A letter of credit assures each party that the other will fulfill their obligation. The issuing bank will charge for providing the letter of credit services.

7 0
3 years ago
A company that doesn't just make money but makes a difference in the world and gives back to the community is a company that eng
mote1985 [20]
Engages in ' Corporate Social Responsibly' the money they earn will be given back to society

For example: a shoe factory allows its customer to buy a pair of shoes so the money goes to society the needy. There is trust between the company and customer and the money benefits society
8 0
3 years ago
Indiana Co. bega n a construction project in 2018 with a contract price of $150 million to receive when the project completed in
Liula [17]

Answer: C) Recognized $9 million gross profit on the project in 2018.

Explanation:

Duration of construction project from 2018 to 2020 = 3 years

Cost incurred by Indiana co. in 2018 = $36 million

Estimated additional cost for the remainder of the project = $84 million

Total cost to be incurred over the duration of the project = $36 million + $84 million = $120 million

To calculate the percentage of the project completed, we use the cost figures;

Cost incurred so far (in 2018) ÷ Total cost to be incurred × 100

36,000,000/ 120,000,000 × 100 = 30%

Total revenue from contract (which is the contract price) = $150 million

Indiana Co. recognizes revenue according to the percentage of the project completed. Therefore, revenue recognized after 30% of the project is completed (which is the revenue for 2018) = 30% of $150,000,000

Revenue for 2018 = 30/100 × 150,000,000 = $45,000,000

Profit recognized on the project in 2018 = Revenue for 2018 - Cost incurred in 2018

Profit = $45,000,000 - $36,000,000

Gross profit recognized in 2018 = $9,000,000

5 0
2 years ago
The Boeing Company created a team made up of employees at the same level from production, planning, quality control, tooling, de
SCORPION-xisa [38]

i am a troll im here just to mess with people after i do this i with go on my main account and answer you question

5 0
3 years ago
true or false: firms should obey all the laws, including but not limited to labor, consumer protection, and the environment.
lesya [120]

False. The actions of the company that are expected by society but are not specified by legislation are included in its ethical duties. The need that the company be environment friendly is one of the ethical responsibility criteria.

The company should be constantly mindful of its operations and how they impact the environment. It is the moral and ethical responsibility of every human and every business. A business that upholds the law is also a business that values social responsibility. The company is free to operate whatever it sees fit, but only within the confines of the rules set down by numerous laws, including labor, environment, and criminal laws.

To learn more about company, click here

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2 years ago
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