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Maslowich
3 years ago
14

You just borrowed money for four years to buy a car. The payments are $218 a month and the APR is 7 percent. How is the EAR comp

uted?
Business
1 answer:
Serggg [28]3 years ago
5 0

Answer:

EAR= 0.072 = 7.2%

Explanation:

Giving the following information:

Nominal interest rate= 7%

Number of periods= 12 months

<u>To calculate the Effective Annual Rate (EAR), we need to use the following formula:</u>

EAR= (1 + nominal rate/number of periods)^number of periods

EAR= [(1 + 0.07/12)^12] - 1

EAR= 0.072 = 7.2%

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If a county government decided to build parks, then the money and resources would not be available for additional fire fighters.
Keith_Richards [23]

Answer:

a. Misallocation of resources

Explanation:

Misallocation of resources implies that assets are not put to their best, best, or proficient use. The utilization of the term misallocation in financial matters is that market analysts recognize two kinds of efficiencies: productive and allocative. The productive alludes to the (effective) utilization of assets to deliver given merchandise and ventures. The allocative alludes to which merchandise and enterprises ought to be created, and who ought to get the opportunity to devour them. Financial matters are generally worried about allocative thought of productivity.

3 0
3 years ago
Corporations with control both within and across industries are formed by a series of mergers and acquisitions across industries
Zielflug [23.3K]

Answer:

conglomerate                

Explanation:

In simple words, A conglomerate refers to the multi-industry corporation, which is a mixture of many enterprises operating within one organizational group in completely different sectors, which can include a holding company and several branches.

The conglomerates are always global and massive. The predominant conglomerates consolidate financial risk through investing in a variety of different industries, although other conglomerates opt to engage in a single sector, like those in mines.        

6 0
3 years ago
As of December 31, 20X14, Eliot Corp. has net income per books of $100,000, which includes municipal bond interest of $4,000, a
muminat

Answer:

Option (e) is correct.

Explanation:

Taxable Income:

= Net income per book - municipal bond interest + deduction for business meals + deduction for a net capital loss + deduction for federal income taxes

= $100,000 - $4,000 + 50% of $5,000 + $5,000 + $22,000

= $125,500

Eliot Corp.'s current earnings and profits (Current E&P) for 2014:

= Taxable Income + municipal bond interest - deduction for federal income taxes - deduction for a net capital loss

= $125,500 + $4,000 - $22,000 - $5,000

= $102,500

5 0
3 years ago
The holder of a promotional permit may:
timurjin [86]

Answer:

Offer in-store wine and beer samples.

Explanation:

Promotional permit was established to allow a person promote sale of alcoholic beverages on behalf of the manufacturer. Such alcoholic beverage must however be sold on the premises of the licenced holder.

A promotional permit holder, according to the Texas Alcoholic Beverage Commission,which was established in 1935, may involve in the sales of alcoholic beverages in a state or premises of the license holder. It is to be noted that the license holder must qualify enough before being granted the permit and must also pay some fees before carrying on such activities.

3 0
3 years ago
Company A produces and sells 10,000 units of its product for $10 per unit. Variable costs are $4 per unit and fixed costs total
Anastaziya [24]

Answer:

Effect on income= $2,000 decrease

Explanation:

Giving the following information:

Selling price= $10 per unit.

Variable costs are $4 per unit

A move to a larger facility would increase rent expense by $8,000, and allow the company to meet its demand for an additional 1,000 units.

We need to calculate the effect in the income of moving to a larger facility.

Effect on income= total contribution margin increase - increase in fixed costs

Effect on income= 1,000*(10 - 4) - 8,000

Effect on income= $2,000 decrease

6 0
3 years ago
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