All categories

3 years ago

bank pays interest quarterly with an EAR of 9%. What is the periodic interest rate applicable per quarter

Business

1 answer:

Vika [28.1K]3 years ago

7 0

Answer:

2.18%

Explanation:

Effective interest rate = (1+i/m)^n - 1

i is stated as interest rate

m is the compounding frequency

Here, the compounding is quarterly and the effective interest rate is 8%

Since one year is equal to 4 quarter, the value of m is equals to 4

Effective interest rate = (1 + i/4)^4 - 1

9% = (1 + i/4)^4 - 1

0.09 + 1 = (1 + i/4)^4

(1.09)^1/4 = 1 + i/4

1 + i/4 = 1.02178

i/4 = 1.02178 - 1

i/4 = 0.2178

i/4 = 2.18%

You might be interested in

A revenue variance is the:

IceJOKER [234]

Answer: Option C

Explanation: In simple words, revenue variance refers to the difference between the revenue one expects to earn as per the budget made for a specified period of time and the revenue it actually earned in that time.

Organisations calculate revenue variance to identify the reasons they are not performing well or the qualities they are performing more than expected.

This measure helps organisation in decision making as to whether they should make changes in their process, and if so then wheat changes, or should remain as they are.

6 0

3 years ago

You have been asked to create a code of ethics for the staff of a school paper to follow. Create a list of 10 rules based on the

Daniel [21]

Thank you for coming to Brainly with your questions :)

Here's my answer:

1. No hurtful gossip.
2. Stay professional.
3. Do not publish anything untruthful.
4. Work together as a team.
5. Meet all deadlines on time.
6. Be accountable.
7. Avoid stereotyping, including race, ethnic, gender, sexuality, etc.
8. Be careful when it comes to what is published.
9. Do not publish anything that is misleading.
10. Support others views besides their own.

I hope this helps you. Please mark Brainliest :) Lemme know if I can do anything else to help you.

-Belle

7 0

3 years ago

The Silver Center (TSC) produces cups and platters. TSC purchases silver and other metals that are processed into silver alloy t

MatroZZZ [7]

Answer: Income earned for cups = $1,000

Explanation:

Given:

Materials cost = $40,000

Labor cost = $44,000

Remixing cost amount to $2,000

TSC sold the platters for $100,000 and the cups for $12,000

There will be a decrease in net income due to non-selling of cups

= $12,000 - $2,000

= $10,000.

Thus, the Company's total income will decrease by $10,000 if it stops making and selling cups.

Joint cost allocated to cups

= (40,000 + 44,000)×12,000 ÷ (100,000 + 12,000)

= $9,000

∴

Income earned for cups

= $12,000 - $2,000 - $9,000

= $1,000

7 0

4 years ago

Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls-the Flight Dynamic and the Sure Shot

lesya [120]

Increase in contribution margin = P 183,750×45.9% = P84,341.25.

Gross margin and gross margin both consider the profitability of businesses of all sizes. The difference between them is that gross margin compares profits and sales in dollars, whereas gross margin compares costs and sales. To calculate profit margin, start with gross profit, which is the difference between sales and COGS. Then find the percentage of sales that equals the gross profit.

Margin is the down payment you make for the total cost of your home. Lenders will only finance up to 75-90% of the total cost of the property, leaving the rest as margin. Lenders see this upfront payment as a sign of commitment, and large payments reduce lending risk.

Learn more about margin at

brainly.com/question/10218300

#SPJ4