Black Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and round your final answer

Valentin [98]

Answer:

Stated Rate No. of Times Compounded Effective Rate (EAR) %

11.85% Semiannually 12.2 %

12.37% Monthly 13.1%

110.27% Weekly 10.8%

13.54% Infinite 14.5%

Explanation:

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

Semiannually

m = 12 / 6 = 2

0.1220 = ( ( 1 + ( APR / 2 ) )^2) - 1

0.1220 + 1 = (1 + ( APR / 2 ) )^2

1.1220 = ( 1 + ( APR / 2 ) )^2

$\sqrt{1.1220}$ = $\sqrt{( 1 + ( APR / 2 ))^2}$

1.059 = 1 + ( APR / 2 )

1.059 - 1 = APR / 2

0.059 x 2 = APR

APR = 0.1185 = 11.85%

Monthly

m = 12 / 1 = 12

0.1310 = ( ( 1 + ( APR / 12 ) )^12) - 1

0.1310 + 1 = (1 + ( APR / 12 ) )^12

1.1310 = ( 1 + ( APR / 12 ) )^12

APR = 12.37%

Weekly

m = 52

0.1080 = ( ( 1 + ( APR / 52 ) )^52) - 1

0.1080 + 1 = (1 + ( APR / 52 ) )^52

1.1080 = ( 1 + ( APR / 52 ) )^52

APR = 10.27%

Infinite

m = 20,000

0.1450 = ( ( 1 + ( APR / 12 ) )^12) - 1

0.1450 + 1 = (1 + ( APR / 12 ) )^12

1.1450 = ( 1 + ( APR / 20,000 ) )^20,000

APR = 13.54%

3 0

3 years ago

14.Outline four features that constitutes a market <br>

ICE Princess25 [194]

Answer:

as

Explanation:

8 0

2 years ago

In implementing a lean production system you should work with suppliers to do which of the following? open facilities near your

Lera25 [3.4K]

<span>In implementing a lean production system you should work with suppliers to do which of the following? Reduce lead time. In a lean production system, the ultimate goal is to reduce the amount of time wasted on production activities. Maximizing your time allows for more productivity and the work gets completed at a faster rate. </span>

7 0

3 years ago

your firm is contemplating the purchase of a new $545,000 computer-based order entry system. the system will be depreciated stra

liberstina [14]

The IRR of the new computer-based order entry system is 22.87%.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

The cash flow at the beginning of the period = purchase price of the system - reduction in working capital

$545,000 - $96,000 = $449,000

Depreciation expense = (cost of the asset - salvage value) / useful life

($545,000 - 0) / 5 = $109,000

Cash flow each year from year 1 to 5 = (amount saved - depreciation)(1 - taxes) + depreciation

($165,000 - $109,00)(1 - 0.22) + $109,000 = $152,680

Terminal cash flow = Salvage value - (tax x salvage value)

$71,000 - (0.22 x 71,000) = $55,380

IRR can be determined using a financial calculator:

Cash flow in year 0 = $-449,000

Cash flow in year 1 - 4= $152,680

Cash flow in year 5 = $152,680 + $55,380 = 208,060

IRR = 22.87%

To learn more about IRR, please check: brainly.com/question/26484024

#SPJ1

3 0

1 year ago

In July 2008, the average price of gasoline in the United States was $4.09 per gallon and consumers bought 6 percent less gasoli

Basile [38]

Answer:

PED= 0.1571

Explanation:

The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:

Price Elasticity of Demand = Percentage change in Q/ Percentage change in P

In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:

%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%

%Change in quantity is= -6%

PED= -6%/38.17%

In absolute value:

PED= 0.1571

If the PED is less than 1 then gasoline is considered as inelastic.

6 0

3 years ago