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lesya692 [45]
3 years ago
15

You are currently earning 12% (APR) compounded semiannually. Your investment company is switching all accounts to daily compound

ing. What rate will give you the same effective annual rate of return as you are receiving now
Business
1 answer:
Sav [38]3 years ago
6 0

Answer:

The rate that will give the same effective annual rate of return is 0.033%.

Explanation:

a) Data and Calculations:

APR = 12%

Semi-annual compound rate = 6% (12/2)

Assumed calendar days in a year = 360 days

Effective daily rate of return = 12%/360 = 0.033%

b) The conversion of semi-annual compounding to daily compounding results in reduced rate of return.  In this case, we assume that there are 360 days in a year.  Since the APR = 12%, it means that the daily rate of return will be 12%/360, which is 0.033%.

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The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31.
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Mary, Susan, and Sarah are running a beach boutique on the board walk of Ocean City. Their favorite product is a red lifeguard h
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Answer:

358.33 times

Explanation:

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lora16 [44]

Answer:

The correct option is;

B. Companies use GAAP when preparing financial statements

Explanation:

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The financial statements include an introduction known as the management discussion and analysis. This preface must contain info
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