Answer:
8.46%
Explanation:
Monthly interest rate = 0.640%
Number of month in year = 12
Investment in non-interest bearing = 6%
Effective annual interest = [(1 + Monthly interest rate)^Number of month] - 1 / (1 - Investment in Non-interest)
Effective annual interest = [(1 + 0.640%)^12] - 1 / (1 - 6%)
Effective annual interest = (1.0064)^12 - 1 / 0.94
Effective annual interest = 1.07956187072 - 1 / 0.94
Effective annual interest = 0.07956187072 / 0.94
Effective annual interest = 0.084640288
Effective annual interest = 8.46%
Hence, the Effective annual is 8.46%.
Answer:
ROI = net profit / total investment
1. What is the current return on investment (ROI) being realized by your division
- ROI = $625,000 / $4,150,000 = 15.06%
2. What would happen to the near-term ROI of your division after adding the effect of the new investment?
- ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) = 14.36%
If you carry out the new project the ROI of your division will decrease.
3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?
- Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.
When a tax of $1.00 per gallon is imposed on sellers of gasoline, the supply curve for gasoline shifts upward, but by less than $1.00. A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied.
Answer: Decision tree
Explanation: A support tool that uses a tree like model for decision making by evaluating the possible consequences by taking into consideration chance event outcomes, resource cost and utility. Largely used in non parametric effective machine, it is a learning modelling technique for regression and classification problems.
It should be noted that the banker that would be visited to raise large amounts of capital is an investment banker.
<h3>Who is an investment banker?</h3>
It can be noted that an investment banker simply means a person that is involved in helping to raise capital for large corporations.
In this case, the banker that a software company most likely visit for help to raise large amounts of capital to acquire, or buy out another company is an investment banker.
Learn more on investment banking on:
brainly.com/question/12301548
