All categories

3 years ago

What is the effective annual rate (EAR)?

2 answers:

7 0

Answer: The effective annual rate (EAR) is the interest rate that would earn the same interest with annual compounding.

The Effective Annual Rate (EAR) is know as the interest rate earned on a subject/asset or remunerated on a borrowing as a consequence of compounding interest over period of time.

The formula to compute effective annual rate is as follow:

$Effective Annual Rate = [1 + \frac{interest rate}{compounding periods}]^{time periods} - 1$

∴ Option (c) is correct.

Furkat [3]3 years ago

6 0

Answer:

The correct option here is C) .

Explanation:

The EAR (effective annual interest rate) which is also know as annual equivalent rate, is the interest rate which is either earned or it is paid on a loan or an investment or any financial product because of the compounding done over a defined period of time. This rate comes in very handy when one has to compare different products like loans or certificate of deposits.

FORMULA -

= ( 1 + i / n )^n - 1

where i = interest rate(NOMINAL ) and n = number of periods

You might be interested in

Heather is an HR specialist at McCoy Manufacturing, where she is responsible for making sure HR policies and transactions delive

il63 [147K]

Answer: An operational executor

Explanation: The skills of an operational executor tend to lie within the range of human resource activities mostly characterized as transactional. They execute the operational aspects of managing people and organizations. That is, they are responsible for making sure human resource policies and transactions deliver results on a company wide basis by acquiring, developing, motivating, and deploying human resources where and when needed. Policies are required to be drafted, adapted, and implemented; while efficiently satisfying the administrative needs of employees through technology, shared services, or outsourcing etc. This leads to the constant application of organizational policies when done properly.

5 0

3 years ago

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general resul

Oksana_A [137]

Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.

Explanation:

Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.

Therefore, option B is the answer.

8 0

3 years ago

In order for Kanye West to perform on the new Arcade Fire album, he must first have what detailed clause in the contract between

zimovet [89]

Answer:

He must have a skratta du flörlar du in his album cover

Explanation:

You laugh, you lose

4 0

3 years ago

Read 2 more answers

The custodian of a $450 petty cash fund discovers that the fund has $65 in coins and currency plus $382 in receipts at the end o

Mandarinka [93]

The entry to replenish the petty cash fund will include a credit to cash for $385.

What is petty cash fund?

When regular purchasing techniques are impractical, such as when buying office supplies or paying employees, a tiny sum of money called petty cash is utilized instead.

The entry to replenish the petty cash fund amount will include:

Fund amount : $450 - Used

Fund amount :$450 - $382 = 68

cash on hand - remaining ; $68 - $65 = $3

Used + remaining ; $382 + $65 = 385

As a result, a credit to cash for $385.

Learn more about on petty cash fund, here:

brainly.com/question/23864192

#SPJ1

8 0

1 year ago

Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little d

igor_vitrenko [27]

Answer:

Bondware Inc.

FIFO Inventory Method:

Ending Inventory (60 units):

Absorption Costing = $66,000

Variable Costing = $56,400

Explanation:

a) Data and Calculations:

Unit Production Costs for March:

Direct materials $500

Variable overhead 440

Total variable cost $940

Fixed overhead 160

Total manufacturing

costs per unit $1,100

Calculation of Ending Units of Inventory:

Beginning units 100

Units produced = 500

Units sold = (540)

Ending units = 60

Beginning Inventory, 100 units:

Absorption costing value = $90,000

Variable costing value = $76,000

FIFO Inventory Method:

Ending Inventory:

Absorption Costing = 60 * $1,100 = $66,000

Variable Costing = 60 * $940 = $56,400

5 0

3 years ago

What is the effective annual rate​ (EAR)?

What is the effective annual rate (EAR)?