Answer:
First National Bank = 14.6%
First United Bank.= = 14.8%
Explanation:
<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>
It can be calculated as follows:
EAR = ( (1+r)^(n) -1) × 100
r -interest rate per period
n- number of period
EAR - Effective annual rate
First National Bank
r - interest rate per month = 13.7%/12 = 1.141%
number of period = 12 months
EAR =( (1+011141)^(12) - 1) × 100
= 0.145938395 × 100
= 14.59
= 14.6%
First United Bank.
r- interest rate per quarter - 14%/4 = 3.5% per quarter
n- number of quarters = 4
EAR = ((1+0.035)^(4)- 1) × 100
= 0.147523001 × 100
= 14.8%
Answer:
the amount of interest that is collected is $503.75
Explanation:
The computation of the amount of interest that is collected is shown below:
= Cash loan × number of days ÷ total number of days × rate of interest
= $31,000 × 90 days ÷ 360 days × 6.5%
= $503.75
Hence, the amount of interest that is collected is $503.75
This is the answer but the same is not provided in the given options
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
A. two balance sheets and B. income statement
Explanation:
There are three types of activities in the cash flow statement which are described below:
1. Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income and the loss on sale of assets is added whereas the gain on sale of assets is deducted
2. Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance. The issue of shares is an inflow of cash whereas redemption and dividend is an outflow of cash.
Answer:
A. incentives
Explanation:
An incentive is a motivator to do something. Traditionally incentive is extrinsic, that is there is a reward given when an achievement is made. This is the rational for bonuses on the job. Where an employee is compensated for achieving a milestone at work.
Ultrinsic.com is using incentive of a cash reward for those that get As as a motivator for the students. Students pay an entry fee of $70 and if one student gets an A he will get the whole pool of funds. If more than one person gets an A they will share the money in the pool.
More students will be motivated to get As.
<span>the answer for this question is 10.50%</span>
