Answer:
<u>2.53%</u>
Explanation:
We need to understand what effective annual rate is to solve this question.
Effective Annual Rate is the actual interest earned on an investment due to effect of compounding.
The formula is:
Effective Annual Rate = 
Where
i is the interest rate given (nominal interest rate)
n is the number of compounding per year
For the old bank,
5% is the interest rate, so i = 5% = 5/100 = 0.05
n is the number of compounding per year, that will be n = 12 since compounding monthly
So, we have:
Effective Annual Rate 
For second bank, we have:
i = what we need to find
n = 2 (since semi annual compounding, every 6 months)
So,
Effective Annual Rate = 
This should be equal to APR from 1st bank (0.05)
So, we solve for i:
So, the interest would have to be
0.0253 * 100 = <u>2.53%</u>
Answer:
The price of the product is $59
Explanation:
Contribution margin is the net of the selling price and variable cost per unit. Contribution margin ratio is the ratio of contribution per unit to selling price per unit. As given below
Contribution margin ratio = Contribution margin per unit / Selling price per unit
23% = $13.57 / Selling price per unit
Selling price per unit = $13.57 / 23% = $59
Answer:
d. 6 years
Explanation:
Depreciation is the loss of value of an asset over a period of time. The asset has a useful life period after which it is referred to as scrap.
The value of the asset after it's useful life is called the salvage value.
Useful life of an asset is estimated and deductions in its value are made till the useful life is exhausted.
In this scenario the useful life was initially taken to be 6 years.
After 4 years it was realised a mistake wasade and useful life is supposed to be 10 years
Since useful life of the asset remains contstant, the remaining years of useful life is the real estimate of useful life less years already used.
Remaining useful life = 10 - 4 = 6 years
<em>Price indexes define the cost of goods in the entire economy at a given point in time.</em>
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A price index is a scale used to measure changes in the levels of prices. This is a percentage scale that can be either based on prices of a single good or an entire market basket. This is only a small-scale index, not representative of an entire economy.
Answer:
Comparative advantage
Explanation:
This concept of economics is comparative advantage that means one country has advantage of producing same product at lower cost than other. In this question China has comparative advantage over USA,
This may be due to different reasons.
1. Population of China is greater than USA, that is why employees are willing to work on low salaries in China as compared to salaries are offered in the US.
2. China is comparatively better in manufacturing industry as of with USA.
