1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgesh-ka [11]
3 years ago
14

Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded

to 2 decimal places, e.g., 32.16. Use 365 days in a year.)
Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)
9.25 % Quarterly %
16.75 Monthly %
15.25 Daily %
11.25 Semiannually %
Business
1 answer:
inna [77]3 years ago
4 0

EAR = (1 + periodic interest rate)^N - 1

<u>9.25 % Quarterly %</u>

EAR = (1+\frac{0.0925}{4})^{4}  - 1 = 0.09575 or 9.58%

<u>16.75 Monthly % </u>

EAR = (1+\frac{0.1675}{12})^{12}  - 1  = 0.1809766 or 18.10%

<u>15.25 Daily % </u>

EAR = (1+\frac{0.1525}{365})^{365}  - 1  = 0.1647053 or 16.47%

<u>11.25 Semiannually %</u>

EAR = (1+\frac{0.1125}{2})^{2}  - 1  = 0.115664 or 11.57%

You might be interested in
Interdepartmental politics is a major problem with __________________ communication.
Mumz [18]

Answer:

Interdepartmental politics is a major problem with <u>horizontal </u>communication.

✘ Create dotted-line relationships to formalize communications.

✔ Establish goals for communication in advance.

✔ Focus communication on achieving a certain task or outcome.

✘ When creating teams, choose people with wide differences in rank within the organization.

6 0
3 years ago
The Payroll records of Oregon Mist contained the following information for the month of November: Salaries $ 350,000 FICA Taxes
uysha [10]

Answer: D. debit to Payroll Tax Expense of $26,950.

Explanation:

We should note that the payroll tax expense will consist of the federal unemployment tax, the state unemployment tax and the FICA taxes. This will then be:

= 3500 + 1750 + 21700

= 26950

Therefore, the journal entry to record the monthly Payroll Tax Expense would include debit to Payroll Tax Expense of $26,950.

8 0
3 years ago
"If the option will cost the investor an additional $10,000, should the investor purchase the option? Enter your answer in thous
kykrilka [37]

Answer:

“Should” or “should not” depend on the cost rate of the option and the risk appetite of investors.

Explanation:

An option is a contract that allows investors to buy or sell instruments such as security, Exchanged Traded Fund or an index at a pre-determined price over a certain period of time.

If the option will cost the investor an additional $10,000 and it is the cost for an option of $10 million investment, then it cost only 0.1% additionally, but it can secure the position of this investment; then the investor should buy this option.

Vice versa, if the additional $10,000 is much more than expected profit, and even lower but significantly drop down the total profit of an investment; and the investor always wish to have a high profit regardless high risk; then he shouldn’t buy this option.

6 0
3 years ago
A government's Statement of Revenues, Expenditures, and Changes in Fund Balances reported proceeds of bonds in the amount of $2,
vesna_86 [32]

Answer:

The reconciliation from the governmental funds' changes in fund balances to the governmental activities change in net position would reflect a decrease of   1,500,000 as the payments.

Explanation:

The change in net position  = Amount of bond proceeds - Amount of bond principal.

The change in net position = $2,000,000 - $500,000 = 1,500,000

There would be a decrease of  1,500,000 as the payments.

The reconciliation from the governmental funds' changes in fund balances to the governmental activities change in net position would reflect a decrease of   1,500,000 as the payments.

6 0
3 years ago
Suppose you believe that Delva Corporation's stock price is going to decline from its current level of $82.50 sometime during th
Yakvenalex [24]

Answer:

B. $1,989.75

Explanation:

Cost of option (C) = $510.25

Option selling price (Po) = $85 per share

Share price when selling (Ps) = $60 per share

Number of shares (n) = 100 shares

Since the option allows you to sell shares that are valued at $60 for at $85 each, by selling 100 shares, your total earnings are:

E=(P_o-P_s)*n\\E=(\$85-\$60*)100\\E=\$2,500

To find the pre-tax net profit (P), subtract the amount paid for the options from your earnings:

P=E-C= \$2,500-\$510.25\\P=\$1,989.75

6 0
3 years ago
Other questions:
  • What is a real account?
    9·1 answer
  • Which of the following is an example of how the Principle of Beneficence can be applied to a study employing human subjects?
    13·1 answer
  • On December 31 of the current year, the assets and liabilities of Tree, Inc. are as follows: Cash $30,000; Supplies, $600; Equip
    10·1 answer
  • The matching principle is best demonstrated by:________.
    6·1 answer
  • True or false if something is legal, it is also ethical
    5·1 answer
  • A minimum wage increases unemployment by
    10·1 answer
  • In the month of March, Crane Salon services 590 clients at an average price of $120. During the month, fixed costs were $21,312
    8·1 answer
  • The Weidmans want to save $20,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 1
    15·1 answer
  • What is the mining of life?​
    14·2 answers
  • A fire and emergency services organization's records management system may be used to?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!