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Leto [7]
3 years ago
9

If the interest is compounded more than once per​ year, which rate is​ higher, the stated rate or the effective​ rate?

Business
1 answer:
arlik [135]3 years ago
7 0

Answer:

the effective rate is higher

Explanation:

the formula used to calculate effective rate is: effective rate = (1 + r/n)ⁿ - 1

for example, he stated rate is 6%:

  • if it is compounded annually, the effective rate is 6%
  • if it is compounded semiannually, the effective rate = (1 + 6%/2)² - 1 = 6.09%
  • if it is compounded quarterly, the effective rate = (1 + 6%/4)⁴ - 1 = 6.14%
  • and so on
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As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the followin
nalin [4]

Answer:

e. $20,075

Explanation:

The computation of the year 1 cash flow is shown below:

= Sales revenue - other operating cost - depreciation expenses - income tax expense + depreciation expenses

where,  

Income tax expense = (Sales revenue - other operating cost - depreciation expenses) × income tax rate  

= ($42,500 - $17,000 - $10,000) × 35%  

= $5,425

And, the other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $42,500 - $17,000 - $10,000 - $5,425 + $10,000

= $20,075

5 0
3 years ago
The market basket is _____________.
LiRa [457]
The market basket is <span>a representative collection of goods and services. The correct option among all the options that are given in the question is the third option or option "c". The other options can be easily negated. I hope that this is the answer that has actually come to your great help.</span>
8 0
4 years ago
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An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I
rusak2 [61]

Answer:

<u>Cost of goods manufactured schedule for the month ended June 30, 2017</u>

Raw Materials                                                 $46,720

Direct Labor                                                     $51,740

Manufacturing Overhead :

Indirect labor                                                     $6,510

Factory insurance                                            $4,700

Machinery depreciation                                  $4,380

Machinery repairs                                             $1,990

Factory utilities                                                 $3,740

Miscellaneous factory costs                            $1,980

Add Opening Work in process Inventory      $5,670

Less Closing Work in process Inventory       ($7,610)

Cost of goods manufactured                       $119,820

Explanation:

Cost of goods manufactured schedule is a summary of manufacturing costs for the production period.

<u>Determination of Raw Materials In Production</u>

Raw Materials T - Account

<u>Debit :</u>

Opening Balance                                     $9,180

Purchases                                              $55,020

Totals                                                     $64,200

<u>Credit :</u>

Work In Process (Balancing figure)       $46,720

Closing Balance                                      $17,480

Totals                                                      $64,200

8 0
3 years ago
on november 1, 2021, aviation training corp. borrows $60,000 cash from community savings and loan. aviation training signs a thr
Juli2301 [7.4K]

Answer:

Explanation:

Nada babosa gracias

6 0
3 years ago
Carpenters​ Company, a manufacturing​ company, acquired equipment on January​ 1, 2017 for $ 500 comma 000. Estimated useful life
svlad2 [7]

Answer:

$46,571

Explanation:

The cost price is $500,000

The residual value  is $ 11,000

Useful life is 7years

The depreciable amount will be cost price -residual value

=$500,000 - $11,000

=$489,000

Depreciation expense per year on the straight-line method will be

=$489,000/7

=$69,857. 14

After three years, the total depreciable amount will be 69,857.14 x 3

=$209,571.42

New book value after three years will be 489,000 - 209,571.42

=$279,428.58.

Useful has been adjusted to nine years.  Three years have passed. Four years remain plus two added years meaning six years to go.

Depreciation from the 4th year will be

=279,428.58/6

=$46,571

8 0
4 years ago
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