Question 3(Multiple Choice Worth 10 points)

Sophie's credit card has an APR of 19 percent. What is the periodic rate?

In-s [12.5K]

Her daily periodic interest rate is 0.05%, her monthly periodic interest rate is 1.58%, and her semiannually periodic interest rate is 9.5%.
APR stands for the annual percentage rate of an interest rate of a person. The periodic interest rate is the portion of an annual percentage rate based on a specified period such as daily, monthly, and semi-annually. The Periodic interest rate is calculated by dividing the APR by the specified period such as 365 for the daily period, 12 for the monthly period, and 2 for the semi-annual period<span>.</span>

3 0

3 years ago

The ending Retained Earnings balance of ABC decreased by $1.5 million from the beginning of the year. The company declared a div

saveliy_v [14]

Based on the information given the net income for the year will be is : $2.9 million.

<h3>Net income</h3>

Using this formula

Net income=Dividend declared-Decrease in Ending Retained earning

Where:

Dividend declared=$4.4 million

Decrease in Ending Retained earning=$1.5 million

Let plug in the formula

Net income=$4.4 million-$1.5 million

Net income=$2.9 million

Inconclusion the net income for the year will be is : $2.9 million.

Learn more about net income here:brainly.com/question/13186458

7 0

3 years ago

Departmental overhead rates are generally preferred to plant-wide overhead rates when:a) the activities of the various departmen

elena55 [62]

Answer:

a) the activities of the various departments in the plant are not homogeneous.

Explanation:

When the activities are homogeneous in nature then common factor for such allocation can be derived.

With that the activities overhead cost would be allocated based on that common factor.

But when the activities are not homogeneous in nature then there can not be any common basis to allocate factory overheads in that case the company uses the plant wide overhead rate that is generally predetermined based on budgets.

8 0

4 years ago

Consider a firm making production decisions in the short run. Select the statement(s) that must be correct. Choose one or more:

k0ka [10]

Answer:

A). Average total cost will always exceed average variable cost.

C). Average fixed cost cannot increase with output, at any level of output

Explanation:

In the short term, a company that increases its profits will increase production if the marginal cost is less than the marginal income.
Reduction in production if marginal cost exceeds marginal income. Continue production when the average variable cost is less than the unit.
so correct answer is A and C

4 0

3 years ago

Suppose the spot exchange rate for the Hungarian forint is HUF 203.86. The inflation rate in the United States will be 1.2 perce

Goryan [66]

Answer:

(1) Exchange Rate in 1 year = HUF 209.90 / $ (2)Exchange Rate in 2 years = HUF 216.12 / $ (3)Exchange Rate in 5 years = HUF 235.92 / $

Explanation:

Solution

Given that:

The Spot Rate = HUF 203.86 /$

This implies that 1 dollar is equivalent to 203.86 Hungarian Forint

Now

(1) The exchange rate in one year

The Purchasing power parity equation is shown below:

Thus

E(S1) / S0 = (1 + RA) / (1 + RB)

Here

E(S1) = Expected Spot Rate of Year 1

S0 = Current Spot Rate - 203.86

RA = Inflation Rate in Hungary - 4.2%

RB = Inflation Rate in United States - 1.2%

Hence

The Exchange Rate in 1 year will be :

E(S1) / S0 = (1 + RA) / (1 + RB)

E(S1) / 203.86 = (1 + 0.042) / (1 + 0.012)

E(S1) / 203.86 = 1.042 / 1.012

E(S1) = (1.042 * 203.86) / 1.012

E(S1) = 209.90

Exchange Rate in 1 year is HUF 209.90 / $

(2)The exchange rate in 2 years

Thus

E(S2) / S1 = (1 + RA) / (1 + RB)

E(S2) = Expected Spot Rate of Year 2

S1 = Spot Rate of Year 1 - 209.90

RA = Inflation Rate in Hungary - 4.2%

RB = Inflation Rate in United States - 1.2%

Hence

The exchange rate in 2 years is HUF 216.12 / $

(3) Exchange Rate in 5 years

The first step here is to compute the expected spot rate of year 3 and year 4 respectively

So,

E(S3) / S2 = (1 + RA) / (1 + RB)

E(S3) = Expected Spot Rate of Year 3

S2 = Spot Rate of Year 2 - 216.12

RA = Inflation Rate in Hungary - 4.2%

RB = Inflation Rate in United States - 1.2%

E(S3) = (216.12 * 1.042) / 1.012

E(S3) = 222.53

E(S4) / S3 = (1 + RA) / (1 + RB)

Now

E(S4) = Expected Spot Rate of Year 4

S3 = Spot Rate of Year 3 - 222.53

RA = Inflation Rate in Hungary - 4.2%

RB = Inflation Rate in United States - 1.2%

E(S4) = (222.53 * 1.042) / 1.012

E(S4) = 229.13

Thus

The exchange rate in year 5 is given below:

E(S5) / S4 = (1 + RA) / (1 + RB)

E(S5) = Expected Spot Rate of Year 5

S4 = Spot Rate of Year 4 - 229.13

RA = Inflation Rate in Hungary - 4.2%

RB = Inflation Rate in United States - 1.2%?

E(S5) = (229.13 * 1.042) / 1.012

E(S5) = 235.92

Therefore the exchange rate in 5 years is HUF 235.92 / $

6 0

4 years ago