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san4es73 [151]
3 years ago
5

First National Bank charges 13.5 percent compounded monthly on its business loans. First United Bank charges 13.8 percent compou

nded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
7 0

Answer: 14.28%

Explanation:

Effective Annual Rate is the rate that takes the periodic rates and converts it to an annual rate if compounding the periodic rate was taken into account.

The formula is;

EAR = (1 + r/m)^m - 1

Where;

r is the Annual nominal rate of interest and,

m is Number of compounding periods in a year

EAR = ( 1 + 13.8/2)² - 1

= 1.142761 - 1

= 0.142761

= 14.28%

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A recent college graduate with a major in economics attends a job fair but has not yet found a job. this graduate is counted as
Ipatiy [6.2K]

A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a Frictionally unemployed worker.

What is frictional unemployment?

Frictional unemployment happens when a person is voluntarily job searching or searching for a new career. Frictional unemployment isn't necessarily a bad thing. In fact, because frictional unemployment is voluntary, it can be a sign of a healthy economy. It means that employees are seeking new jobs and new careers

What is an example of frictional unemployment?

Examples of frictional unemployment include: Employees leaving their current positions to find new ones. Employees seeking a career change. Individuals entering the workforce for the first time after graduating from college or searching for their first job.

Learn more about frictional unemployment:

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5 0
1 year ago
The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:
olchik [2.2K]

Answer:

Kindly check attached picture

Explanation:

Given the details below

Accounts Debit Credit

Cash $16,000

Accounts receivable 162,000

Prepaid rent 10,000

Supplies 31,000

Equipment 370,000

Accumulated depreciation $129,000

Accounts payable 11,000

Salaries payable 3,500

Interest payable 1,900

Notes payable (due in two years) 37,000

Common stock 210,000

Retained earnings 176,100

Dividends 27,000

Service revenue 360,000

Salaries expense 150,000

Advertising expense 75,000

Rent expense 18,000

Depreciation expense 32,000

Interest expense 2,500

Utilities expense 35,000

Totals $928,500 $928,500

Prepare an income statement for China Tea Company for the year ended December 31, 2021

Kindly check attached picture

8 0
3 years ago
The Esposito Import Company had 1 million shares of common stock outstanding during 2021. Its income statement reported the foll
borishaifa [10]

Answer:

Explanation:

The preparation of the 2021 EPS presentation for the Esposito Import Company is shown below:

Income from continuing operations                           $7 million

Less: Loss from discontinued operations                  ($1.4 million)

Net income                                                   $5.6 million

Now the earning per share would be

Earning per share = (Net income) ÷ (Number of shares)

                              = ($5.6 million) ÷ (1 million shares)

                              = $5.6 per share

5 0
3 years ago
You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years
Radda [10]

Answer:

21%

Explanation:

Given that,

Cost of share = $21.70

Expect to pay dividend in year 1 = $1.00

Expect to pay dividend in year 2 = $1.16

Expect to pay dividend in year 3 = $1.3456

Expected selling price of share at the end of year 3 = $28.15

Growth rate in Dividends:

= [(Dividend in Year 2 - Dividend in Year 1) ÷ Dividend in Year 1] × 100

= [($1.16 - $1.00) ÷ $1.00] × 100

= 0.16 × 100

= 16%

Expected dividend yield :

= (Dividend in year 1 ÷ Cost of Share ) × 100

= (1.00 ÷ $21.70) × 100

= 0.05 × 100

= 5%

Stock's expected total rate of return:

=  Expected Dividend Yield + Growth rate in Dividends

= 5% + 16%

= 21%

8 0
3 years ago
Kimberly sold equipment that she uses in her business for $50,000. Kimberly bought the equipment two years ago for $60,000 and h
PSYCHO15rus [73]

Answer:

$20,000 ordinary gain

Explanation:

Data provided in the question:

Cash proceeds from Selling of the equipment = $50,000

Purchasing cost of the equipment = $60,000

Depreciation expense = $30,000

Now,

The book value of the equipment

= Purchasing cost of the equipment - Depreciation expense

= $60,000 - $30,000

= $30,000

Since,

the amount of proceeds from sales is higher than the book value of the equipment

Therefore a gain will be recognized

The amount of Gain = proceeds from Selling - book value

= $50,000 - $30,000

= $20,000

Hence,

$20,000 ordinary gain

7 0
3 years ago
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