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Doss [256]
3 years ago
11

Arabian Beauty Cosmetics borrowed BD 152.300 from the National Bank of Bahrain (NBB) for three years. If the quoted rate (APR) i

s 11.75%, and the compounding is daily, what is the Effective Annual Rate?​
Business
1 answer:
Tju [1.3M]3 years ago
5 0

Answer: 12.47%

Explanation:

First convert the APR to the relevant periodic rate.

The compounding is done daily so the periodic rate is:

= 11.75%/365

Effective Annual rate is calculated by the formula:

= ( 1 + periodic rate)  ^ compounding period per year - 1

= ( 1 + 11.75%/365)³⁶⁵ - 1

= 12.47%

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The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet i
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The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled of Long-term liabilities.

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Long-term liabilities can be regarded as loans aa well as other financial obligations that the repayment schedule would be expected to last over a year.

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Suppose you find $20. if you choose to use the $20 to go to the football game, your opportunity cost of going to the game is:___
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Suppose you find $20. if you choose to use the $20 to go to the football game, your opportunity cost of going to the game is <u>$20</u>.

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