The effective compound interest rate is 13.87%.
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What is Compound Interest?</u></h3>
- The interest on a loan or deposit that is calculated based on both the initial principle and the accumulated interest from prior periods is known as compound interest (also known as compounding interest).
- Compound interest, sometimes known as "interest on interest," is said to have its roots in 17th-century Italy. Compared to simple interest, which is calculated solely on the principal amount, it will cause a sum to grow more quickly.
- The frequency of compounding determines the rate at which compound interest accumulates.
- The compound interest increases with the number of compounding periods.
- For instance, during the same period of time, the amount of compound interest accrued on $100 compounded at 10% yearly will be less than $100 compounded at 5% semi-annually.
Nominal = interest rate
That is Nominal rate is also known as interest rate.
Nominal rate = 13.20%
The invested money is compounded quarterly.
Periodic = 13.2%/4 (quarterly)
Periodic rate = 3.30%
Now,
The interest rate that accounts for compounding over a specific time period is called the Effective Annual Interest Rate (EAR). The rate of interest that an investor can earn (or pay) in a year after taking into account compounding is known as the effective annual interest rate, to put it simply.
Effective annual rate = EFF% = [1 + (0.13200 / 4)]⁴ - 1 = 13.87%
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The answer to the blank space is data.
The contents of the spreadsheet are the annual record of airfares to different cities from Chicago. This is what we call data – which are facts or statistics collected together for reference or analysis. Since Silway Travels plans to use the annual record information to contrast airfares during peak and off-season, it is clear that the data in this case would be used for analysis.
Answer:
The correct answer is normative analysis.
Explanation:
A positive analysis is the one that attempts to reflect reality with statements of cause and effect and is used mainly in microeconomics. On the other hand, a normative analysis, in which reality is prescribed, that is, we go beyond explanation and prediction, value judgments are used.
In contrast to the positive analysis, the normative analysis responds how the law should achieve efficiency objectives. This analysis assumes that efficiency is an objective that law should reflect and that legal norms should change when they fail. From this perspective, efficiency is a social value that the Law should promote.
Answer:
4) recorded as a reduction of the cost of the land.
Explanation:
When you are calculating the cost of any land purchased, you must start with the purchase price and add all the expenditures necessary for getting the land ready, e.g. legal fees, taxes, real estate commissions, land grading, clearing the trees, etc., and subtract any revenue obtained, e.g. from the sale of salvaged materials or timber.
total cost of land = purchase price + (fees, commissions, grading, clearance expenses, taxes, etc.) - revenue (salvaged materials, scrap, timber, etc.)
