The offered investment has a nominal rate (N) of 6% compounded quarterly (n=4 times a year). The effective rate of return (R) is obtained by:
The effective rate of return that you will earn from this investment is 6.14%.
*Note that the amount invested is not relevant when determining the effective rate of return, which means that the rate would be the same for any amount.
The answer is during the period of inventory valuation. It is
the cost linked with an entity’s inventory at every end of the accounting
period. The FIFO method means first in, first out technique which undertakes
that the first product that was obtained are also the first ones to be retailed
or sold.
