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Kamila [148]
2 years ago
11

The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaper is published 252 days per year (5 days

per week, except holidays). If a 10% nominal annual interest rate compounded quarterly is used: What is the effective annual interest rate in this problem?
Business
1 answer:
elena-s [515]2 years ago
8 0

Answer:

The effective annual rate of interest is "10.38%".

Explanation:

The given values are:

Nominal annual interest rate,

Q = 10%

i.e.,

   = 0.10

Quarterly compounding,

q = 4

Now,

The effective annual rate of interest will be:

=  [{1 + (\frac{Q}{q} )}^q] - 1

On substituting the given values in the above formula, we get

=  [{1 + (\frac{0.10}{4} )}^4]  1

=  [(1 + 0.025)^4] - 1

=  (1.025)^4-1

=  1.10381289 - 1

=  0.10381289

On converting it into percentage, we get

=  10.38%

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(Ignore income taxes in this problem.) The Sawyer Corporation has $145,000 to invest and is considering two different projects,
Ivan

Answer: -$‭20,529.6‬0

Explanation:

Net Present value of Y = Present Value of Inflows - Present value of Outflows

Present Value of Y inflows

$32,000 inflows for 5 years. This is therefore an annuity

Present value of annuity = Annuity * Present value interest factor, 9%, 5 years

= 32,000  * 3.8897

= $‭124,470.4‬0

Net Present Value = 124,470.4‬0 - 145,000

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3 years ago
14) What are the two parts of demand?
Usimov [2.4K]

Answer: The two parts of demand are:

• Willingness to buy

• Ability to pay

Explanation:

Demand simply refers to the amount of the goods and services which the buyers want to purchase at a certain price for a particular period of time.

There are two parts of demand which are the willingness of a buyer to purchase a certain good and also the ability to pay by the person.

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3 years ago
Generally, firms entering foreign markets begin with:
kirill115 [55]

Answer:

a. less risky strategies first.

Explanation:

When find enter into foreign markets their knowledge and experience in the market space is limited. They will most likely implement less risky strategies of doing business bearlier on.

As they get to understand the market dynamics of the foreign country they are more confident in doing more risky transactions.

For example they can start with local production and exporting to the foreign country first. Then later open up operations in the foreign country.

7 0
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Read 2 more answers
Marshall has received an inheritance and wants to invest a sum of money today that will yield $4,800 at the end of each of the n
In-s [12.5K]

Answer:

B

Explanation:

We are to find the present value of the annuity

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 10 = $4,800

I = 5%

Present value = 37,064.16

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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3 years ago
Georgia Corp. uses the indirect method to prepare the statement of cash flows. Refer to the following section of the comparative
Lelu [443]

The change in Accounts Receivable will be shown on the statement of cash​ flows as:

C. Subtraction from net income under the operating activities section.

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Change in Accounts Receivable:-  

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           In 2019                                 $ 48,000  

           In 2018                                 $ 45,000  

Increase in Current Assets              $ 3,000  

This implies Cash outflow from Operating Activities.

Thus it should be subtracted from Net Income under the Operating Activities section.

Net income is a company's profit for a given period, whereas cash flow from operating activities measures the cash that comes in and goes out during a company's day-to-day operations. Net income is used to calculate cash flow from operating activities. However, both are important in determining a company's financial health.

For more information on Net income, visit :

brainly.com/question/14213197

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3 0
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