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
krok68 [10]
3 years ago
8

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compou

nded semiannually.
Business
1 answer:
Ugo [173]3 years ago
8 0

Answer:

a. EAR for First National Bank  = 12.35%

b. EAR for First United Bank = 12.25%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compounded semiannually.

Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Explanation of the answers is now given as follows:

The effective annual rate (EAR) can be calculated using the following formula:

EAR = ((1 + (i / n))^n) - 1 .............................(1)

Where;

i = Annual interest rate of the bank

n = Number of compounding periods in a year

Therefore, we have:

a. Calculation of the EAR for First National Bank

i = Annual interest rate of First National Bank  = 11.7%, or 0.117

n = Number of compounding periods in a year = 12

Substituting the values into equation (1), we have:

EAR for First National Bank = ((1 + (0.117 / 12))^12) - 1

EAR for First National Bank = 1.12348257790079 - 1

EAR for First National Bank  = 0.12348257790079, or 12.348257790079%

Rounding to 2 decimal places as required, we have:

EAR for First National Bank  = 12.35%

b. Calculation of the EAR for First United Bank

i = Annual interest rate of First United Bank = 11.9%, or 0.119

n = Number of compounding periods in a year = 2

Substituting the values into equation (1), we have:

EAR for First United Bank = ((1 + (0.119 / 2))^2) - 1

EAR for First United Bank = 1.12254025 - 1

EAR for First United Bank = 0.12254025, or 12.254025%

Rounding to 2 decimal places as required, we have:

EAR for First United Bank = 12.25%

You might be interested in
Grocery stores are likely to hold ______ inventory of candies to meet the extra demand during halloween.
Degger [83]

Grocery stores are likely to hold<u> anticipation</u> inventory of candies to meet the extra demand during Halloween.

Halloween's origins may be traced returned to the historical Celtic pageant referred to as Samhain, which become held on November 1 in modern-day calendars. It become believed that on that day, the souls of the useless returned to their homes, so humans wore costumes and lit bonfires to ward off spirits.

Halloween, a contraction of All Hallows' Eve, a holiday discovered on October 31, the nighttime before All Saints' (or All Hallows') Day. The party marks the day earlier than the Western Christian dinner party of All Saints and initiates the season of Allhallowtide, which lasts three days and concludes with All Souls' Day.

Halloween Ends is an upcoming American slasher film directed via David Gordon Green and written by using inexperienced, Danny McBride, Paul Brad Logan, and Chris Bernier. it's far a sequel to 2021's Halloween Kills and the thirteenth installment within the Halloween franchise.

Learn more about Halloween here brainly.com/question/18459726

#SPJ4

4 0
1 year ago
A demand curve is built on the assumption that
Natali5045456 [20]

Answer: A demand curve is built on the assumption that only the demand and price of the good/service will change.

Explanation: A demand curve is a graph that shows the change in how much demand may change if price of the good/service changes well. The graph helps connect the relationship between both price and demand

6 0
3 years ago
Havermill co. establishes a $460 petty cash fund on september 1. on september 30, the fund is replenished. the accumulated recei
svp [43]

Answer:

Explanation:

The journal entry to record the establishment of the fund on September 1 is:

Debit: Petty Cash. $460

Credit: Bank. $460

Being cash drawn for petty cash.

Other journal entry for the disbursement of the petty cash fund are:

1. Debit: Office Supplies. $94

Credit: Petty cash. $94

Being cash paid for office supplies

2. Debit:Merchandise inv. $170

Credit: Petty Cash. $170

Being cash paid for merchandise inventory

3. Debit: Miscellaneous exp. $43

Credit : Petty cash. $43

Being cash paid for miscellaneous expenses.

4 0
3 years ago
As the director of information systems at your​ company, you receive reports regarding crackpot postings on the company sm site.
Luda [366]

The best course of action is to remove the reponses that were not intended for the site. I would also reach out to those who posted the inappropriate remarks and give them a warning regarding the comments. If they make those comments again or anything of inappropriate nature, they will be terminated.

7 0
3 years ago
The production team of U Sandals that manufactures women's footwear has determined the quantity of leather, threads, labor, and
velikii [3]

Answer:

D) multifactor productivity

Explanation:

Multifactor productivity measures the total output vs total inputs needed to produce them. It basically measures economic performance and productive efficiency. How many inputs (labor, materials and overhead) are needed to produce a certain amount of finished goods or services.

7 0
3 years ago
Other questions:
  • What type of technology would be needed to gather evidence of a jet stream?
    14·1 answer
  • God will remain faithful only as long as man believes.<br><br><br> True False
    9·1 answer
  • Which job is categorized as professional and would most likely earn a salary?
    5·2 answers
  • A company borrowed cash from the bank and signed a 6-year note at 7% annual interest. The present value for an annuity (series o
    14·1 answer
  • If the selling price is $22 per unit, what is the contribution margin per unit sold? (round your answer to 2 decimal places.)
    5·1 answer
  • Selling the bonds at a premium has the effect of a. raising the effective interest rate above the stated interest rate b. causin
    5·1 answer
  • Both Bond Bill and Bond Ted have 10.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 ye
    11·1 answer
  • How many people do online school here...? Because I see a lot of the same questions here...?
    13·2 answers
  • Seven years ago, Goodwynn &amp; Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium.
    5·1 answer
  • Some companies use ____ as internal tools for teams working on a project requiring lots of documentation.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!