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shepuryov [24]
2 years ago
8

An effective 12.68% per year, compounded monthly is the closest to:

Business
1 answer:
Sergio039 [100]2 years ago
8 0

Answer:

a. 12% per year

Explanation:

Effective interest rate

r = (1 + i/n)^n - 1

r = effective interest rate

i = simple interest rate compounded monthly

n =  number of compound intervals

12.68% = ((1+i/12)^12)-1)

1+0.1268 = ((1+i/12)^12)

1.1268^(1/12) =1+i/12

1.010 = 1+i/12

1.010-1 = i/12

0.010 x 12 = i

i = 0.12 = 12%

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For each of the transactions in APA-1, indicate how the operating activities and investing activities sections of the cash flow
jolli1 [7]

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8 0
1 year ago
Paul consumes only books and DVDs. At his current consumption​ bundle, his marginal utility from DVDs is 21 and from books is 4
Nat2105 [25]

Answer:

Paul is NOT maximizing his utility.

Explanation:

Given:

MU_{D} = Marginal utility from DVDs = 21

MU_{B} = Marginal utility from books = 4

P_{D} = Price of DVDS = $11

P_{B} = Price of books = $1

Under the utility maximization theory for two or more goods, utility is said to be maximized by a consumer when the ratios of the marginal utility to price per unit of each good are equal to each other. For this question, this implies that when we have:

MU_{D} / P_{D} = MU_{B} / P_{B} ………………………….. (1)

Therefore, we have:

MU_{D} / P_{D} = 21 / 11 = 1.91

MU_{B} / P_{B} = 4 / 1 = 4

Since 1.91 = MU_{D} / P_{D}  < MU_{B} / P_{B} = 4, this implies that these conditions are NOT consistent with equation (1). Therefore, Paul is NOT maximizing his utility.

In order to maximize his utility, Paul should consume more DVDs and consume less books until these conditions are consistent with equation (1).

7 0
2 years ago
What is joint tenancy?
NeTakaya

Answer:

Explanation:

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