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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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The one-to-one property of natural logarithms states that if ln x = ln y, then
Irina18 [472]
<span>If ln x = ln y, then x=y. Because ln is the constant on both sides of the equation, therefore, ln cancels itself out, leaving x equaling y.</span>
5 0
3 years ago
The Ingraham Corporation has $1,000 par value bonds outstanding. The bonds have an annual coupon rate of 8.90 percent and an ann
Hunter-Best [27]

Based on the inflation rate and the yield to maturity, the real rate of return on the bonds will be 5.23%.

<h3>What is the real rate of return?</h3>

This can be found by the formula:

=  (( 1 + nominal Return) / ( 1 + Inflation rate)) - 1

Solving gives:

= ( ( 1 + 8.0%) / ( 1 + 8.90%)) - 1

= 1.0523 - 1

= 5.23%

Find out more on real rates of return at brainly.com/question/1698368.

7 0
2 years ago
The lakeshore hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: month guest-day of
Law Incorporation [45]

Answer:

cost formula: Total cost = F + (V x Q) = $4,500 + ($0.75 x Q)

  • F = fixed costs = $4,500
  • V = variable costs = $0.75 per guest day
  • Q = number of guest days

Explanation:

month                      occupancy              supplies expenses

march                           4,000                         $7,500

april                              6,500                         $8,250

may                              8,000                        $10,500

june                             10,500                       $12,000

july                               12,000                       $13,500

august                           9,000                       $10,750

september                    7,500                         $9,750

high activity level        12,000                       $13,500

low activity level           4,000                        $7,500

variation                        8,000                        $6,000

variable cost per guest-day = $6,000 / 8,000 = $0.75

fixed costs per month = $13,500 - (12,000 x $0.75) = $4,500

cost formula: Total cost = F + (V x Q)

F = fixed costs = $4,500

V = variable costs = $0.75 per guest day

Q = number of guest days

3 0
3 years ago
the 2010 federal budget for the united states includes spending $164 billion to pay interest on the national debt. if this amoun
Irina-Kira [14]

The total federal budget based on the budgeted interest on national debt is $3550 billion($3.55 trillion)

What percentage of the budget is $164 billion on national budget?

The spending on interest regarding the national debt is 4.62% of the entire federal budget, on that basis, we can convert the 4.62% to what 1% term and multiply that by 100% to ascertain the total federal budget.

4.62% of federal budget=$164 billion

1 % of federal budget=$164 billion/4.62

1 % of federal budget=$35.50 billion

100% of federal budget=$35.50 billion*100

100% of federal budget=$3.55 trillion

Find out more about federal budget on:brainly.com/question/15561900

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6 0
1 year ago
Wildhorse Company purchased 300 of the 1000 outstanding shares of Ayayai Company's common stock for $570000 on January 2, 2021.
GarryVolchara [31]

Answer:

$664,000

Explanation:

Correct words: <em>"If Wildhorse Company used the </em><em>Equity </em><em>value method of accounting for its investment in Ayayai Company"</em>

<em />

Ownership percentage = 300/1000

Ownership percentage = 30%

Balance in equity investment at Dec 31, 2021 = $570,000 + Share in earnings ($370,000*30%) - Share in dividends paid out ($85000*20%)

Balance in equity investment at Dec 31, 2021 = $570,000 + $111,000 - $17,000

Balance in equity investment at Dec 31, 2021 = $664,000

So, the Equity Investments balance for Ayayai company on December 31, 2021 is $664,000.

7 0
3 years ago
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