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serious [3.7K]
3 years ago
14

You are looking to buy a car and you have been offered a loan with an APR of 6.5 %​, compounded monthly. a. What is the true mon

thly rate of​ interest? b. What is the​ EAR? g
Business
1 answer:
jekas [21]3 years ago
8 0

Answer: The answer is given below

Explanation:

a. What is the true monthly rate of​ interest?

The monthly rate of interest will be the annual percentage rate of charge given in the question divided by the number of months. This will be:

= APR/12

= 6.5%/12

= 0.065/12

= 0.0054

= 0.54%

b. What is the​ EAR?

The effective annual rate will be calculated using the formula:

EAR = (1 + (APR / m)^ m) - 1

EAR = (1 + (0.065/ 12)^12) - 1

EAR = [(1 + 0.0054)^12] - 1

EAR = (1.0054)^12 - 1

EAR = 1.06676 - 1

EAR = 0.06676

EAR = 6.68%

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Which of the following activities of the central bank do not constitute monetary​ policy? A. Monitoring key stock prices. B. Mon
charle [14.2K]

Answer: Please refer to Explanation

Explanation:

1. A. Monitoring key stock prices.

This does not fall under what the Central Bank does when Monetary Policy is implemented. Monetary Policy allows the government to influence interest rates, monitor financial institutions and indirectly control money supply.

2. Low and predictable levels of inflation.

Under the mandate of PRICE STABILITY, the Fed aims to ensure low and Predictable inflation in the long run to preserve the purchasing power of money.

3. Management of interbank transfers.

The Fed monitors and manages Interbank transfers to protect the financial system.

4. Management of Macroeconomic fluctuations.

- The Fed just embarked on monetary policy to correct the Economy. This was a Macro Economic function as it dealt with the entire economy as a whole.

5. Regulation

The Fed acts as the regulator of Banks and ensures that they follow certain practices and rules to ensure the safety of the banking system and the money belonging to the people who put it there.

5 0
3 years ago
Wilson Corporation produces a large number of fishing products. The costs per unit of a particular fishing reel are as follows.
vlada-n [284]

Answer:

The decision is incorrect. It is cheaper to make in house.

Explanation:

Giving the following information:

Make in house:

Direct materials and direct labor 10

Variable factory overhead 6

Fixed factory overhead 4

The company recently decided to buy 10,000 fishing reels from another manufacturer for $18

We need to  calculate the unitary variable cost of production. Fixed costs are unavoidable, therefore they shouldn't be taken into account.

Variable cost= direct material + direct labor + variable overhead

Variable cost= 10 + 6= $16

The decision is incorrect. It is cheaper to make in house.

3 0
3 years ago
Crane Company produces two models: Model 24 has sales of 300 units with a contribution margin of $40 each; Model 26 has sales of
pantera1 [17]

Answer:

Effect on income= 50*50= $2,500 increase

Explanation:

Giving the following information:

Model 26 has sales of 150 units with a contribution margin of $50 each.

To calculate the effect on income, we need to use the following formula:

Effect on income= number of units*unitary contribution margin

Effect on income= 50*50= $2,500 increase

3 0
3 years ago
Fredrick is single and lives alone. He paid more than half of the cost of maintaining a home for his father for the entire year.
Elan Coil [88]

Because Fredrick can not claim his father as a dependent then, the filing status that can Fredrick use is Single.

<h3>What is a filing status?</h3>

A filing status is a tax status that is used to determine a taxpayer's filing requirements, standard deduction, eligibility for certain credits, correct tax etc.

In conclusion, because Fredrick can not claim his father as a dependent then, the filing status that can Fredrick use is Single.

Read more about filing status

<em>brainly.com/question/1831273</em>

4 0
2 years ago
Chan has been happily married to Mei Lin for the last five years and is very secure in their relationship. Over the last year, h
Alisiya [41]

Answer:

Respect

Explanation:

At the fourth level in Maslow´s hierarchy, is the need for respect.

When the needs at the bottos have been satisfied, the esteem needs begin to play a more prominent role in motivating behavior.    The first three steps in the maslow hierarchy are: physiological, safety and love.

3 0
3 years ago
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