Answer:
First National EAR 14.48%
First United EAR 14.38%
Explanation:
Calculation to determine Calculate the EAR for First National Bank and First United Bank.
Using this formula
EAR = [1 + (APR / m)]m − 1
Let plug in the formula
First National EAR = [1 + (.136 / 12)]12 − 1
First National EAR= .1448*100
First National EAR=14.48%
First United EAR = [1 + (.139 / 2)]2 − 1
First United EAR = .1438*100
First United EAR = 14.38%
Therefore the EAR for First National Bank and First United Bank will be :
First National EAR 14.48%
First United EAR 14.38%
Answer:
Correct option is B
Explanation:
When cash is received from accounts receivables, it only impacts on balance sheet that too, only on cash assets and non cash assets.
Cash will be increased and non cash asset accounts receivables will be decreased, everything else will remain constant.
Thus correct option is B
Where Cash Assets = + $87,800
Non Cash Assets = - $87,800
Offering regular customers discounts on products is known as an external incentive.
Option D
<u>Explanation:</u>
External incentives can be defined as the form of additional bonus, products, loyalty services or exclusive deals. Incentives help in developing the brands in the following areas,
- Trust-worthy relationship
- Stimulating impulsive purchases
External incentives acts as simulator in boosting the business levels; improving the brand and increasing the sales. For example, offering free mints after a meal in restaurants would attract more customers to the restaurant.
Answer: None of the above
Explanation:
The deficit spending unit is used in describing a scenario when an economy, the household or firm, has spent more than it earned for a particular period of time.
Since the family has a car loan of $24,623 with a local bank, thus means that they spent more than they earned and therefore took loans and are a deficit spending unit.
Since the option isn't given, the correct option is None of the above.
