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krek1111 [17]
3 years ago
13

What is the effective annual interest rate of an investment that pays 14.75% per year with a compound frequency n= 2? (Answer pe

rcentage rounded to second decimal place).
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

15.29%

Explanation:

r = Interest rate = 14.75%

m = Number of times compounding in a year = 2

Effective Annual Rate = (1 + r/m)^m - 1

Effective Annual Rate = (1 + 0.1475/2)^2 - 1

Effective Annual Rate = 1.07375^2 - 1

Effective Annual Rate = 1.1529390625 - 1

Effective Annual Rate = 0.1529391

Effective Annual Rate = 15.29%

So, the effective annual interest rate of the investment is 15.29%

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Kevin analyzes the quarterly earnings statements of some fifty obscure small-cap stocks. He then buys according to the earnings
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Answer:

Semi-strong form efficiency.

Explanation:

Semi-strong form efficiency contends that security prices have factored in publicly-available market and that price changes to new equilibrium levels are reflections of that information. It is considered the most practical of all Efficient Market Hypothesis(EMH) hypotheses but is unable to explain the context for material nonpublic information (MNPI). It concludes that neither fundamental nor technical analysis can be used to achieve superior gains and suggests that only MNPI would benefit investors seeking to earn above average returns on investments.

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3 years ago
A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be pe
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Answer:

A. the FCAC is less than the TBC

Explanation:

If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, then the FCAC is less than the TBC

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3 years ago
Which of the following is an example of fraud?
Dmitry_Shevchenko [17]

Answer:

c

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if it was never in stock its misleading and a fraud

7 0
3 years ago
Read 2 more answers
Which of the following accurately describes the requirements banks must meet under a fractional reserve banking system? A. Banks
ikadub [295]

Answer:A,B,E,F

Explanation:

Just took the test

5 0
3 years ago
Present value with periodic rates. Sam​ Hinds, a local​ dentist, is going to remodel the dental reception area and add two new w
rusak2 [61]

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)

  • $2,820.62

and monthly payments ​(12 per​ year)?

  • $531.13

Compare the annual cash outflows of the two payments.

  • total semiannual payments per year = $2,820.62 x 2 = $5,641.24
  • total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each​ year?

  • The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments ​(2 per​ year)?

  • $2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

5 0
3 years ago
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