1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anna11 [10]
3 years ago
5

Determine which is the better investment: compounded semiannually or compounded quarterly. Round your answers to decimal places.

Business
1 answer:
klemol [59]3 years ago
8 0

Answer:

the numbers are missing, so I looked for a similar question and found:

<em>Determine which is the better investment: 5.22% compounded semiannually or 5.24% compounded quarterly. Round your answers to 2 decimal places.</em>

  • effective interest rate for semiannual compounding = (1 + 5.22%/2)² - 1 = 5.29%
  • effective interest rate for quarterly compounding = (1 + 5.24%/4)⁴ - 1 = 5.34%

Compounded quarterly is a better investment than compounded semiannually

Explanation:

The shorter the compounding period, the more interests received (or paid if it is a loan) and the nominal interest rate is the same:

E.g. lets assume that the nominal interest rate is 10% per year:

  • effective interest rate for annual compounding = 10%
  • effective interest rate for semiannual compounding = (1 + 10%/2)² - 1 = 10.25%
  • effective interest rate for quarterly compounding = (1 + 10%/4)⁴ - 1 = 10.38%
  • effective interest rate for monthly compounding = (1 + 10%/12)¹² - 1 = 10.47%
You might be interested in
Executive pay at Ashance Inc., a manufacturing company, includes bonuses based on the year’s profits or other measures related
Debora [2.8K]

Answer:

Short-term incentive

Explanation:

The reason is that long term incentives are based on achiving goals that take more than a year and short term goals achievement duration is less than 12 months. This means that the profit maximization benefit is short term goal and the incentive on short term goal is short term incentive.

The company has gained the tax advantages by including the payment of the bonus in thier retirement plans which is an example of short term incentive.

6 0
3 years ago
Which of the following fees would likely be the highest? AOverdraft fee BAccount transfer fee CMonthly service fee D
slamgirl [31]
A. overdraft fees would likely be the highest. you could buy something for $5 and go negative and banks would charge you way more than $5
8 0
3 years ago
Which of the following is NOT true regarding the production possibilities frontier (PPF)? The PPF illustrates the trade-offs tha
ddd [48]

Answer:

The correct answer is: The PPF shows us that gains from trade are maximized when countries produce goods for which they have an absolute advantage in production.

Explanation:

A production possibilities frontier is a curve that shows different combinations or bundles of two goods that can be produced using all the resources and technology available.

It represents the concept of scarcity of resources and opportunity costs. Because of the scarcity of resources we cannot increase the production of both goods. To increase the production of one good we need to sacrifice the production of others. So, there is some opportunity cost involved in producing each additional unit of output.

7 0
3 years ago
Conducting an inaccurate self-assessment can lead you to work at a job that you do not enjoy.
tatuchka [14]
True because c<span>onducting an inaccurate self-assessment is the main key to working a bad job.</span>
4 0
3 years ago
Read 2 more answers
1. Which method of job-searching has been shown to have the highest success rate. a. Cold-calling potential employers b. Using a
daser333 [38]

Answer:

The correct answer is letter "D": Networking.

Explanation:

According to an article published by Forbes in September 2016, networking is the method of job-searching with the highest rate of success. Individuals asking to their close environment -whether families or clubs- about job positions that may fit their skills 33% of the time end up being hired. The second place is for <em>agency firms</em> with 28% of success rate followed by <em>answering newspaper ads</em> with a 24% success rate.

5 0
3 years ago
Other questions:
  • Anything called money will be<br> large and heavy<br> easy to create<br> scarce<br> backed by gold
    13·2 answers
  • Leonard Technologies invests $ 62,000 to acquire $ 62,000 face​ value, 8​%, fiveminusyear corporate bonds on December​ 31, 2014.
    6·1 answer
  • Accounting for lean operations requires fewer transactions because
    9·1 answer
  • 5. Which is an external users of accounting?
    11·1 answer
  • Which of the following best exemplifies the relationship between a capital good and a consumer?a. A commercial baking oven and l
    9·1 answer
  • As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two n
    5·1 answer
  • Which of the following is a good time management technique
    5·2 answers
  • Assume that the corporate tax rate is 34% and the personal tax rate is 30%. The founders of a newly formed business are debating
    5·1 answer
  • Bow-Wow Company manufactures a product with a unit variable cost of $50 and a unit sales price of $88. Fixed manufacturing costs
    5·1 answer
  • The amount of a real estate broker's commission is
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!