Answer:
a) 12%
b) 12.36%
c) 12.55%
d) 12.68%
Explanation:
Data provided in the question:
Nominal rate of return, r = 12% = 0.12
Now,
Effective rate of interest is given as :
i = [ 1 + ( r ÷ n ) ]ⁿ - 1
here,
Number of compounding periods = n
Thus,
a) compounded annually %
n = 1
i = [ 1 + (0.12 ÷ 1 )]¹ - 1
= 1.12¹ - 1
= 0.12 or 12%
b) compounded semiannually %
n = 2
i = [ 1 + ( 0.12 ÷ 2 ) ]² - 1
= 1.06² - 1
= 0.1236 or 12.36%
c) compounded quarterly %
n = 4
i = [ 1 + ( 0.12 ÷ 4 ) ]⁴ - 1
= 1.03³ - 1
= 0.1255 or 12.55%
(d) compounded monthly %
n = 12
i = [ 1 + ( 0.12 ÷ 12 ) ]¹² - 1
= 1.01¹² - 1
= 0.1268 or 12.68%
Answer:
20%
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has
Real GDP in 2015 = ( $2 x 250) + ($3 x 300) + ($4 x 400) = $3000
Real GDP in 2016 = ( $2 x 200) + ($3 x 400) + ($4 x 500) = $3600
Growth rate in real GDP = $3600 / $3000 - 1 = 0.2 = 20%
Answer:
$1,200
Explanation:
The total revenue generated by the burrito tax is $1,200 (= $2 x 600). Since this tax increases the price of the burritos above equilibrium price, it generates a deadweight loss since the quantity demanded decreased because of the tax.
Answer:
c. Accounting anomalies indicate fraud has occurred or is occurring.
Explanation:
Anomaly is a term describing the incidence when the actual result under a given set of assumptions is different from the expected result. .In finance, two common types of anomalies are market anomalies and pricing anomalies. Market anomalies are distortions in returns that contradict the efficient market hypothesis.