Answer:
17.5%
Explanation:
Effective annual rate is a yearly rate of return which includes the compounding effect. APR is the simple rate of return which is being paid on the principal amount that is being invested.
Formula for Effective Interest rate
EAR = ( 1 + APR/n )^n -1
0.18974 = ( 1 + APR/12 )^12 -1
0.18974 + 1 = ( 1 + APR/12 )^12
1.18974 = ( 1 + APR/12 )^12
(1.18974)1/12 = (( 1 + APR/12 )^12 )1/12
1.0146 = 1 + APR/12
1.0146 - 1 = APR / 12
0.0146 = APR / 12
APR = 0.0146 x 12
APR = 0.175 = 17.5%
Answer:
Explanation:
Present value of Annuity will be used for this as the future payments are given after equal intervals.
PV of an Annuity = C x [ (1 – (1+i)^-n) / i ]
Where,
C is the cash flow per period
i is the rate of interest
n is the frequency of payments
add given Values in the formula:
$1,000 x [ (1 – (1+4%)^-12) / 0.04 ]= $9387.5 is the Answer
Answer:
$663.420
Explanation:
The value for the investment is the future of $1000, earning a compound interest of -5% for eight years.
The formula for compound interest is as below.
FV = PV × (1+r)^n
Fv = $1000 x ( 1 + (-5/100)^8
Fv= $1000 x (1 +(-0.05)^8
FV= $1000 x (0.95)^8
Fv=$1000x 0.6634204
Fv=$663.420
The value will be $663.42
Answer:
$100 income, that added fees are only $600.
Answer: A. identifying pricing objectives and constraints
Explanation:
It is in the above mentioned stage of the Price Setting Process that the sales growth rate and business stages are accounted for as constraints or objectives to be met.
In identifying the pricing objectives and constraints, the expected growth rate should be factored in to find out what price the goods can be sold at to ensure that sales grow at the required rate for example.
