In general, it is true that if the frequency is higher, then you make more money. For example, suppose you have a capital 1$ and the interest rate can be either 50% compunded annually or 25% compounded semiannually (same total interest in a year, different compounding rate). In the first case you get 1.5$ back at the end of the year, while in the second case after 1 semester you have 1.25$. After 2 semesters, you have 1.56$. You cannot make infinite money this way though; you can at most gain a factor of 2.7 by reducing the intervals of compounding.
The correct answer is the highest frequency, namely when the interest is compounded as frequently as possible (as long as the total interest rate is the same).
2/5(40k)8 that's your answer. I'm in 8th grade iTS NOT HE RIGHT ANSWER I GUESSED
Answer:
The accrued interest at December 31, 2022 amounts to $3,540
Explanation:
Accrued Interest = Amount borrowed × rate × Number of months/ 12
where
amount borrowed is $88,500
rate is 12%
= $88,500 × 12% × 4/12
= $3,540
The accrued interest for one year note is $3,540
Note: Number of months from September to December will be 4 months that is September, October, November and December.
Answer:
Option D. $0
Explanation:
The reason is that Taj will have to recognize a bad debt expense of $12,000 which would decrease the receivable with the same amount.
The entry would be:
Dr Bad Debt Expense $12,000
Cr Accounts Receivables $12,000
This means that the Taj will not reconize loss, all he will do is pass a bad debt expense entry. So the correct answer is option D.
Answer:
32.64%
Explanation:
Given Data:
Average annual return (mean) = 14.7%
standard deviation = 33%
A) what percent of years does the portfolio lose money ( ?% < 0% )
The percentage of the year that the portfolio loses money = 32.64%
attached below is a detailed solution
The value of P( Z < -0.45 ) = 0.32636 . This value is gotten from standard normal table
