Answer:
The correct answer is letter "C": The effective annual rate equals the annual percentage rate when interest is compounded annually.
Explanation:
Interest Rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates are the primary yardsticks for measuring how much return lenders will get.
The effective annual interest rate is a way of restating the annual interest rate so that it takes into account the effects of compounding. Using the effective annual interest rate helps us understand how differently a loan or investment performs if it compounds annually, semiannually, monthly, or in any other time frame. If compounded annually, the effective interest rate equals the annual percentage rate.
Answer:
$143,700
Explanation:
Current assets in Sheridan Company's trial balance are;
Accounts receivable (net) = $37,000
Trading securities = $11,500
Cash = $33,000
Inventory = $58,500
Prepaid expenses = $3,700
Total current assets = $37,000 + $11,500 + $33,000 + $58,500 + $3,700
= $143,700
The right answer is not given as an option.
<span>Service members who take the 25 percent or 50 percent lump sum option will receive less in overall benefits than they would have gotten if their retirement benefits were spread out over normal monthly payments.Since this high percent lump sum option, it may affect decrease in funds flows to retirement benefits</span>
Answer: $700
Explanation:
Based on the information given in the question, the optimal price for this new jPad, which can be assumed to operate in a monopoly will be calculated thus:
P = 2000+Q
TR = P × Q
TR = (2000 + Q) × Q
TR = 2000Q + Q²
MR = 2000 + 2Q
MC = 600
Since marginal revenue equals to marginal cost, this will be:
MR = MC
2000+2Q = 600
2Q = 2000 - 600
2Q = 1400
Q = 1400/2
Q = 700
Expected price next year = $62.58
Beta is 0.75, PO is $50, D1 is $2, RF is 11%, and RM is 4%.
Where,
Expected Dividend = D
Po = Price as of today.
Risk-free Rate is Rf.
Market risk premium is Rm.
g = rate of growth
Equity cost is Rf plus beta minus Rm.
Equity cost is 11% plus 0.75 and 4%.
Equity cost = 3.33%
Making use of the Dividend Discount Model to Estimate Growth Rate
(D1/P0) + g = ke
(2/50) + g = 3.33%
0.04 + g= 3.33%
g = 3%
Expected price for the following year = $2*1.033/ (0.03-0.033)
Expected price next year = $62.58
What is Expected price?
As its name suggests, predicted price level is a forecast that takes into account accurate evaluation of pertinent economic data to foretell what will happen with those goods and services in the future. Making changes to this level when new information becomes available is essential because unknowable factors may become real over time.
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