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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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Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:
const2013 [10]

Answer and Explanation:

a. The computation of the earning per share is given below:

As we know that

Earning per share = (Net income - preference dividend) ÷ (average no of common shares oustanding)

For 20Y5

= ($1,508,000 - $60,000)  ÷ 80,000 shares

= $18.1

For 20Y6

= ($2,676,000 - $60,000) ÷ 120,000 shares

= $21.8

b. Since the earning per share is increased from 20Y5 to 20Y6 so it is favorable

4 0
3 years ago
Identify and explain two reasons why effective communication within a business is important to the management​
steposvetlana [31]

Answer:

Why effective communication within a business is important to the management?

In order to attain your objectives, it is critical to communicate well during negotiations. Within the business, communication is also crucial. Effective communication can aid in the development of a positive working connection between you and your employees, which can enhance morale and productivity.

Explanation:

It Builds and Maintains Relationships: Positive interactions with people help to form and maintain relationships. Communication will be crucial in this process; without it, it would be difficult to build and maintain fruitful partnerships. Communication is an important component of any relationship. Two people cannot be friends until they begin to communicate with one another. A supervisor-underling relationship is similar, in that the boss should be able to explain how to do his job to a new office worker.

It Facilitates Innovation: Collaboration and innovation inside the unit or organisation can be improved when employees feel free to express themselves. Employees, for example, will be able to share their ideas on how to improve a company process. Furthermore, if employees are unable to communicate their ideas owing to a lack of communication skills, the idea is unlikely to be fully implemented.

3 0
2 years ago
Q 8.2: On June 15th, Buehler Company sells merchandise on account to Chaz Co. for $1,000, terms 2/10, n/30. On June 20th, Chaz C
Pavel [41]

Answer:

C : $686

Explanation:

The computation of the cash received amount is shown below:

= (Sale value of merchandise - returned merchandise) × (100 - discount rate)

= ($1,000 - $300) × (100 - 2%)

= $700 × 98%

= $686

Since the payment is made within 30 days, so the company could avail the discount of 2% and the return goods should be deducted so that the actual amount of cash received can come.

8 0
3 years ago
A decision is made at the margin when each alternative considers
laila [671]
The Answer is D cost and benefit ranked in progressive units.
8 0
3 years ago
5. One-year interest rates are 2% in the U.S. and 5% in Canada. “Jackie the carry trader” borrows $3,000,000 to execute a carry
pogonyaev

A)

  • Firstly convert $3000000 into CAD

          So, CAD is 3405221.33938

  • Invest CAD  in Canada 5% for 1 year
  • In t= 1yr realize canadian investment with interest so, CAD  on maturity

        = CAD 3405221.33938 (1+ 0.05)

        = CAD 3575482.40634

  • Again now convert CAD into US $ so, equivalent  US $ realised on conversion = CAD 3575482.40634 * $0.865/ CAD

                            = $ 3092792.28148

  • US repayment = $ 3000000*(1+ 0.02)

                                  = $ 3060000

That's why,

Profit over the year = $3092792.28148- $3060000

                                  = $32792.28148

B) doesn't depreciates relative to USD

C) appreciates relative to Canadian dollar

D) BEEX = US$ borrowings to be repaid with interest/ CAD realized with interest on maturity

               = $3060000/ CAD 3575482.40634

               = 0.8558

Learn more about this-

brainly.com/question/3729664

#SPJ10

7 0
2 years ago
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