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tatiyna
3 years ago
13

National Bank offers a loan at 13.5% per year, compounded weekly (Assuming there are 52 weeks per year). United Bank offers a lo

an at 13.7% per year, compounded semi-annually. If you are going to borrow money from one of these two banks, which bank you should go for
Business
1 answer:
Pavlova-9 [17]3 years ago
7 0

Answer:

United Bank

Explanation:

assuming that I need to borrow $1,000, if I borrow money from:

National Bank, interest + principal due in one year = $1,000 x (1 + 0.002596)⁵² = $1,144.34

weekly interest rate = 0.2596%

United Bank, interest + principal due in one year = $1,000 x (1 + 0.0685)² = $1,141.69

semi annual interest rate = 6.85%

Since the amount of money owed to United Bank is lower, then I should go there.

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Arbitrage reducing the returns of actively managed funds is a key reason that actively managed funds have lower returns than index funds with a similar level of risk

To add, <span>actively managed funds typically have higher fees than passively managed funds.</span>

5 0
3 years ago
Which of the following nations is not one of the three members of the North American Free Trade Agreement (NAFTA)?
goblinko [34]
The answer to this question should be A
8 0
3 years ago
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Rachel's Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
pantera1 [17]

Answer:

Dividend of preferred shares = No of shares * Dividend percent * Par value of shares = 2,000 * 7% * $50 = $7,000

Hence, dividend in arrears for the year 2019 and 2020 is $14,000 ($7,000+$7,000). Dividend for 2021 is $7,000

Description                                                                             Amount

Preferred dividend in arrear for the year 2019 and 2020  $14,000

Add: Preferred dividend for the year 2021                          <u>$7,000</u>

Total preferred dividend                                                       $21,000

Less: Total dividend                                                               <u>$23,000</u>

Dividend for common shareholder                                     (<u>$2,000)</u>

Hence, dividend paid for cumulative preferred share in the year 2021 is $21,000 and the amount paid for common shareholders is $2,000

8 0
3 years ago
Select all that apply GAAP and IFRS rules ______. require that the same method be used for both internal and external segment re
Alexxandr [17]

Answer:

The correct options are "A, C, and D".

Explanation:

  • GAAP becomes regarded as a relatively 'rules-based' management framework, seems to be the accounting technique used throughout the United States
  • IFRS becomes quite 'principles-based', although this would be the accounting framework used in more than 110 countries throughout the globe.
  • These allow the same approach being used for international and domestic section reporting, which generate reconciliation issues.

4 0
3 years ago
Martin purchased municipal bonds that yield 7% annually and certificates of deposit which yield 9% annually.
jeka94

Answer:

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000

Explanation:

Data provided in the question:

Annual yield on municipal bond = 7% = 0.07

Annual yield on certificated of deposits = 9% = 0.09

Initial investment = $11,000

Annual income = $830

Now,

Let the amount invested in municipal bond be 'x'

Therefore,

the amount invested in certificated of deposits = $11,000 - x

Thus,

according to question

⇒ 0.07x + 0.09( $11,000 - x ) = $830

⇒ 0.07x + $990 - 0.09x = $830

⇒ -0.02x = $830 - $990

⇒ -0.02x = -$160

⇒ x = $8,000

Hence,

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000

7 0
3 years ago
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