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Hatshy [7]
3 years ago
15

Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe

rcent compounded annually. Calculate the effective rates and state which bank offers the lowest cost of borrowed capital.
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer and Explanation:

The computation is given below:

For Bank A,

Effective annual rate is

= (1 + 0.10 ÷ 12)^12 - 1

= 10.47%

For Bank B,

Effective annual rate is

= (1 + 0.11 ÷ 4)^4 - 1

= 11.46%

And,

For Bank C,

Effective annual rate = 12%

Therefore, Bank A is best to borrow at lowest effective annual rate

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On average, workers in Australia can produce 3 units of agriculture output or 9 units of manufacturing output per day. In Guyana
tester [92]

Answer:

3 UNITS OF MANUFACTURING OUTPUT

2 units of manufacturing output?

Explanation:

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

the opportunity cost of agricultural output in Australia = manufacturing output per day / agricultural output

= 9/3 = 3

the opportunity cost of agricultural output in Guyana = manufacturing output per day / agricultural output

= 8/4 = 2

8 0
3 years ago
The owner of Marshall Restaurant is disappointed because the restaurant has been averaging 7,500 pizza sales per month, but the
Troyanec [42]

Answer:

No of units                6,000            7,500       10,000  

Total fixed cost              $12,000.00   $12,000.00   $12,000.00  

Total variable cost         $9,000.00     $11,250.00   $15,000.00  

Total cost                 $21,000.00   $23,250.00   $27,000.00  

Fixed cost per pizza  $2.00                $1.60   $1.20  

Variable cost per pizza  $1.50                 $1.50   $1.50  

Average cost per pizza  $3.50                $3.10   $2.70  

3 0
3 years ago
Which of the following refers to a set of rights to control a tangible or intangible thing?
Lyrx [107]

Answer:

a) Property

Explanation:

A property right is the exclusive or sole authority which determines the legal ownership of tangible and intangible resources and how these resources are to be used, whether by individuals or government.

Basically, properties can either be owned by the government, an individual or business entity. Some examples of a property include cars, land, houses, machines, books, inventions, mobile phones, ideas, birds, etc.

Hence, property rights refers to a set of rights to control a tangible or intangible thing.

6 0
3 years ago
On jan. 2, callie company received a $700 payment from a customer previously billed for services performed. the journal entry to
svp [43]

To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

<h3>What is Journal entry?</h3>

A journal entry exists as an act of keeping or creating records of any transactions either economic or non-economic. Transactions exist listed in an accounting journal that indicates a company's debit and credit balances. The journal entry can consist of several recordings, each of which exists either a debit or a credit.

A journal entry exists as a record of the business transactions in the accounting books of a business. A properly recorded journal entry consists of the correct date, amounts to be debited and credited, an explanation of the transaction, and a unique reference number. A journal entry exists as the first step in the accounting cycle.

Hence, To record On Jan 2, Callie Taylor received a $700 payment from a customer formerly billed for services performed. The journal entry to record this transaction would contain a debit to the cash account and a credit to the Accounts Receivable account.

To learn more about Journal entry refer to:

brainly.com/question/14279491

#SPJ4

7 0
2 years ago
Tangerine Tangerine ink Target capital structure is 20% debtthe following information about sleep please Corporation a company h
Tasya [4]

16% is the answer.

<u>Explanation:</u>

<u>The following is used in order to calculate the cost of the retained earnings. </u>

The Calculation of cost of retained earnings by using bond yield plus the risk premium method

= Long term bond yield + the risk premium

The Long term bond yield = 12 percent

The risk premium = 4 percent

Cost of retained earnings = 12 percent plus 4 percent = 16 %

Therefore, the correct option will be with the 16 percent .

7 0
3 years ago
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