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Anastasy [175]
3 years ago
7

An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compound

ed quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate
Business
1 answer:
zhannawk [14.2K]3 years ago
7 0

Answer:

Nominal rate is 4.4%

Periodic rate is 1.1%

Effective rate is 4.5%

Explanation:

Bank offer the the nominal interest rate to their customer which already includes the inflation effect, so the stated rate is the nominal rate on the investment.

Nominal Interest rate = 4.4%

Interest rate that is calculated for a specific period from an annual rate is periodic interest rate.

Periodic interest rate (Quarterly) = 4.4% x 3 /12 = 1.1%

Effective Interest rate is the actual rate of return that an investor receives including compounding effect. It is expressed in annual term.

Effective Interest rate = ( 1 + 1.1% )^4 - 1 = 4.5%

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Land held for possible plant expansion would be included as an operating asset when computing return on investment (ROI).
Softa [21]

Answer:

B. False

Explanation:

Land held for possible plant expansion would NOT be included as an operating asset when computing return on investment (ROI).

Return on investment (ROI) is used to measure the profitability of an investment. It helps to compare the gain or loss from an investment in relation to its cost.

Return on investment can be used to determine

1. Profitability of a stock investment,

2. Profitability of the purchase of a business investment

3. Profitability of a real estate business

ROI = Net return / cost of investment × 100

Net return= Final value of investment - initial value of the investment

6 0
3 years ago
When making an attribution, dan considers how his roommate has behaved in similar situations in the past. dan is using _______ i
Gekata [30.6K]
When making an attribution, Dan considers how this roommate has behaved in similar situations in the past. Dan is using consistency information. 

Information consistency refers to the same thing, being consistent, that even though something may be slightly different the outcome remains the same. In this case, Dan is assuming his roommate will make the same behavior choices as he has previously. 
7 0
2 years ago
Which question is an illustration of a macroeconomic question? rev: 05_10_2018 Multiple Choice Is a corporation unresponsive to
Tasya [4]

Answer:

How will the government’s budget deficit be affected by public infrastructure projects?

Explanation:

Macroeconomics is concerned with the general behavior and changes in the economy as a whole. Macroeconomics studies parameters that affect the entire economy, such as inflation, unemployment, national income, gross domestic product (GDP), and general price levels.  It contrasts microeconomics, which studies the choices and behavior of individual households and industries.

A government's budget is for the entire economy.  A deficit that affects public infrastructure projects will impact the country's economic development programs. Government spending forms part of fiscal policies that influence economic development in a country.

8 0
3 years ago
A local ice-cream parlor has 100 customers in the "rush" hour between 5PM and 6PM (assume that the customers arrive according to
WITCHER [35]

Answer: 36 seconds.

Explanation:

Based on the information given in the question, the Taktzeit for the ice-cream scoopers will be calculated thus:

First and foremost, Taktzeit refers to the time taken between the beginning of production for one unit and the beginning of the next unit.

From the information given, the available Time is 1 hour which can be converted to secunds and this will be:

1 hour = 3600 seconds

Hourly Demand = 100

Then, the takzeit will be:

= 3600/100

= 36 seconds

5 0
3 years ago
Arlington Town uses an Internal Service Fund to account for its motor pool activities. Based on the following information, calcu
sergij07 [2.7K]

Solution :

The price per trip is given as $=\frac{\text{total cost}}{\text{No. of trips}}$

The number of trips is given as = 800

The total cost calculations are as follows :

Particulars                                             Amount            Calculations

Annual cost for automobile van             $ 18,000           $\frac{45000 \times 2}{5}$

Cost of driver salary                               $ 80,000        45000 + 35000

Cost of fringe benefits                           $ 24,000         80000 x 30%

Cost of insurance                                  $ 2,000                 \frac{6000}{3 \text{ years}}

Fuel and maintenance                           $ 8,000

Total cost                                              $ 132,000.00

Therefore the price per trip $=\frac{\$ 132,000}{800 \text{ trips}}$

                                          $= \$ 165 \text{ per trip}$

5 0
2 years ago
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