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
7nadin3 [17]
3 years ago
6

Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as

a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 9.3% Quarterly % 18.3 Monthly 14.3 Daily 11.3 Infinite
Business
1 answer:
Ierofanga [76]3 years ago
7 0

Answer and Explanation:

The formula to calculate the effective annual rates under the following scenarios is as follows:

As we know that

Effective annual rate = (1 + Annual percentage rate ÷  compounding period)^compounding period - 1

1. For Quartely

EAR = (1 + 0.093 ÷ 4)^4 - 1

= 9.63%

2. For monthly

EAR = (1 + 0.183 ÷ 12)^12 - 1

= 19.92%

3. For daily

EAR  = (1 + 0.143 ÷ 365)^365 - 1

= 15.37%

4. For daily

EAR = (e)^APR - 1

Here

e = 2.71828

EAR = (2.71828)^0.113 - 1

= 11.96%

You might be interested in
The following data pertain to an investment proposal (Ignore income taxes.):
Hoochie [10]

The net present value of the proposed investment is closest to $5,146.

Net present value = Present value of cash-flows - Initial investment

<u>Given Information</u>

PV of cashflows at 18%

Cash flows                            PV at 18%     P.V. of cash-flows

$12,000 (Cost saving)            3.127                 $37,524

$6,000 (Salvage)                   0.437                 <u>$2,622</u>

Total                                                                   <u>$40,146</u>

Net present value = $40,146 - $35,000

Net present value = $5,146

Therefore, the net present value of the proposed investment is closest to $5,146.

Learn more about Net present value

<em>brainly.com/question/25748668</em>

6 0
2 years ago
When starting a business it is best to ? A. Borrow from bank B. Find investors C. Use your saving D. Obtain a loan from family o
nikdorinn [45]
I'd rather use my Saving but Getting a loan from family or friend is Kinda Nice if they have the money for it. but Borrowing from a Bank is Smart But Do You Even Have enough money in you're bank for it?

6 0
4 years ago
A bank with a negative repricing (or funding) gap faces refinancing risk. Group of answer choices True False
guajiro [1.7K]

Answer:

True

Explanation:

hope this helps :(

3 0
2 years ago
Contracts drafted under a common law framework tend to be
Fynjy0 [20]

Answer:

In detailed along with all the contingencies that are spelled out.

Explanation:

Common law is the body which is of legal rules that have been made or build through the judges as they will issue the rulings on cases, which is opposed to the rules and the laws which were made through the official statutes or the legislature.

Under the common law, the contracts are made or stated or drafted so that they will provide a brief as well as detailed rules along with all the possible contingencies which were spelled out or made out.

3 0
3 years ago
Which of the following statements is false concerning the use of ABC in service industries?
ELEN [110]

Answer:

b. When using ABC for service industries, special methods must be used to identify cost pools and cost drivers due to the unique nature of the services offered.

Explanation:

The cost pool method are the same we should look for activities which add value to the product to provide a more accurate product costing.

In cases of services the company will also determinate activities considering this premise therefore, there is no especial nature to offer to the client.

6 0
3 years ago
Other questions:
  • Give examples of factors or criteria often used to determine higher wages for a particular job.
    15·1 answer
  • Flozell Adams is a professional football player formerly with the Dallas Cowboys. He submitted a claim in arbitration against hi
    11·1 answer
  • How is it possible to have a large amount of assets but only modest net worth?
    14·1 answer
  • Can someone please help me?
    13·1 answer
  • Read the following stock quote. How much is this stock worth?
    9·1 answer
  • The following information pertains to Blossom Company.
    12·1 answer
  • Many ironworkers are also experienced in what other skills? (Select all that apply.)
    8·1 answer
  • The following information was extracted from the 2020 financial statements of Max Company: Income from continuing operations bef
    15·1 answer
  • It is very important to you that your work allows you to use your best abilities. You want to see the results of your work and g
    6·1 answer
  • Kunkel Company makes two products and uses a conventional costing system. A single plantwide predetermined overhead rate is comp
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!