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Ksju [112]
3 years ago
6

Jing, a recent engineering graduate, never took engineering economics. When she graduated, she was hired by a prominent engineer

ing firm. The earnings from this job allowed her to deposit $10000 each quarter into a savings account. Their way two banks that offer savings accounts in her town(a small town!).The first bank was offering 4.5% interest compounded continuously. The second bank offered 4.6%Compounded monthly. Jing decided to deposit in the first bank because it offered continuous compounding. Did she make the right decision?
Business
1 answer:
serious [3.7K]3 years ago
8 0

Explanation:

Since measuring the effective interest rate and effective interest rate of 4,6% multiplied per month, the effective rate was 4,6980 dollars annually, so she did not use the right option and preferred the lower rate because she was on a lower rate of return while she was a continual companion.

In this issue, the rate of interest has Adjusted and the interest rate paid for this monthly compound is higher than what the interest rate is offered. The rate of the continuous compounds is also higher than the rate of interest offered on the monthly compounding.

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The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this
Paha777 [63]

Answer:

A) The price of a donut is $2.00 in 2012.B) Rina's wage is $14.00 per hour in 2012

Explanation:

Nominal value means face value or stated value.

Real value means nominal value adjusted for inflation. Real value of money can refer to the purchasing power of money. Rina's wage is 2 paperback novels per hour in 2012 is an example of real value.

I hope my answer helps you

3 0
3 years ago
Kaylor Equipment Rental paid $75 in dividends and $511 in interest expense. The addition to retained earnings is $418 and net ne
VladimirAG [237]

Answer:

$1,269.46

Explanation:

Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.

To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)

Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)

= $75 + $418 = $493 - This represents a partial net income

The next step is to calculate the taxable income as follows:

The net income is $493, and the Tax rate is 35%

Taxable Income = $493/ (1-0.35) = $758.46

Earnings before interest and tax therefore =

Interest paid + Taxable Income

= $511 + $758.46 = $1,269.46

7 0
3 years ago
Who decides whether a suspect will be tried for an alleged crime
Nadusha1986 [10]
District attorney decides if a suspect will be tried for a crime.
5 0
3 years ago
Read 2 more answers
The current price of a 10 year $1000 par value bond is $1158.91. Interest on this bond is paid every 6 months, and the nominal a
tatuchka [14]

Answer:

16.22%

Explanation:

To calculate the annual coupon rate, you can use the following formula:

Coupon Rate= (Annual coupon payment/Par value of the bond)* 100%

Annual coupon payment= $1158.91*14%= 162.2

Par value of the bond= $1000

Coupon Rate= (162.2/1000)*100%

Coupon Rate=0.1622*100%

Coupon Rate= 16.22%

The annual coupon rate on this bond is 16.22%

4 0
3 years ago
The Grow Your Garden seed company recently conducted a situation analysis. It decided on its marketing goals too. What is its ne
zhannawk [14.2K]

Answer:

To plan effective strategies and specific tactics to accomplish the strategic objectives

Explanation:

Since the company has conducted situational analysis and chosen its marketing goals the next logical step is to plan effective strategies and specific tactics to accomplish the strategic objectives. Both situational analysis and marketing goals are needed in order to understand who to target and what to aim for. Once a company has this, they need to plan a course of action in order to accomplish those goals as effectively as possible.

3 0
3 years ago
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