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Bingel [31]
3 years ago
6

First National Bank charges 13.6 percent compounded monthly on its business loans. First United Bank charges 13.9 percent compou

nded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan
Business
1 answer:
melomori [17]3 years ago
8 0

Answer:

First National EAR 14.48%

First United EAR 14.38%

Explanation:

Calculation to determine Calculate the EAR for First National Bank and First United Bank.

Using this formula

EAR = [1 + (APR / m)]m − 1

Let plug in the formula

First National EAR = [1 + (.136 / 12)]12 − 1

First National EAR= .1448*100

First National EAR=14.48%

First United EAR = [1 + (.139 / 2)]2 − 1

First United EAR = .1438*100

First United EAR = 14.38%

Therefore the EAR for First National Bank and First United Bank will be :

First National EAR 14.48%

First United EAR 14.38%

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Ad libitum [116K]

Answer:

False

Explanation:

A common size income statement is an income statement expressed in percentages. Each line item is expressed as a percentage of total revenue or total sales, not as a percentage of net income.

A common size income statement is used to analyze the relative weight of the company's accounts, e.g. gross margins, net margins, manufacturing expenses relative to total sales, etc.

3 0
3 years ago
The management of Penfold Corporation is considering the purchase of a machine that would cost $270,000, would last for 5 years,
Lorico [155]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Initial investment= $270,000

Cash flow= $60,000

Number of years= 5

Discount rate= 12%

<u>To calculate the net present value (NPV), we need to use the following formula:</u>

NPV= -Io + ∑[Cf/(1+i)^n]

∑[Cf/(1+i)^n]:

Cf1= 60,000/1.12= 53,571.43

Cf2= 60,000/1.12^2= 47,831.63

.....

Cf5= 60,000/1.12^5= 34,045.61

∑[Cf/(1+i)^n]= 216,286.57

<u>Now, the NPV:</u>

NPV= -270,000 + 216,286.57

NPV= -53,713.43

5 0
2 years ago
Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to:_____
andrew-mc [135]

Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to a temporary increase in the growth rate.

In the Solow model, a larger saving rate has no long-term impact on the growth rate. Higher steady-state capital stock and level of output do follow a higher saving rate. The growth rate briefly increases as production changes from a lower to a higher steady-state level. Low rates of saving the result in small capital stock in the steady state and low levels of output in the steady state. Only in the near run do higher savings translate into quicker economic development. Up until the economy reaches its new steady state, an increase in the saving rate causes growth to accelerate.

Learn more about the economy here brainly.com/question/1106682

#SPJ1.

7 0
1 year ago
Please help me asap!!!
melomori [17]

Answer:

Finder's fee. good luck dude

6 0
2 years ago
Mr. Albanese turns to spending hundreds of millions of dollars for water management systems. These systems are to address more i
Veronika [31]
<span>The component of triple bottom line is Economic -- as enabling the business to run.
In the triple bottom line concept, economic refers to environmental policies that will affect Company's financial condition. In this particular case, spending money for water management sysyems will actually financially benefit Mr.albanesse because intense rains wont stunt his bbusiness operations</span>
4 0
3 years ago
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