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Kruka [31]
2 years ago
10

Joel takes out a loan with a stated rate of 11. 85% interest. If the interest is calculated weekly, how much greater is Joel’s

effective rate than his stated rate? a. 0. 72 percentage points b. 0. 52 percentage points c. 0. 70 percentage points d. 0. 67 percentage points.
Business
2 answers:
vredina [299]2 years ago
8 0

The effective interest rate is greater by 0.72 percentage points as compared to the nominal interest rates.

Computation:

Given,

(r) Nominal Interest rate =11.85%

(m) compounding period = weekly, that is 52.

The formula of the effective interest rate will be used:

\begin{aligned}\text{Effective Interest Rate}&=(1+\frac{r}{m})^m-1\\&=(1+\frac{0.1185}{52})^{52}-1\\&=(1.00227)^{52}-1\\&=0.1257\;\text{or}\;12.57\%\end{aligned}

Now, the difference of the effective interest rate and nominal interest rate will be determined to know the exceeding percentage:

\begin{aligned}\text{Difference Percentage}&=\text{Effective Interest rate - Nominal Interest rate}\\&=0.1257-0.1185\\&=0.72\end{aligned}

Therefore, option a. 0.72 percentage points is correct.

To know more about the effective interest rates, refer to the link:

brainly.com/question/14270693

lukranit [14]2 years ago
5 0

Answer:

12.57−11.85=0.72%

Explanation:

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Elden [556K]

Answer:

The best allocation base for assembling activities costs are the number of parts actually assembled.

Since the number of parts is not an option int his question, the second best allocation base for the assembling process is A) direct labor hours.

If the process is highly automated, then the second best allocation base would be machine hours, but that isn't an option either.

8 0
3 years ago
Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement sta
Elis [28]

Answer:

a. Profit = $780,000

b. Profit = $3,780,000

c. Loss = $2,220,000

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Beedles Inc. needed to raise $14 million in an IPO and chose Security Brokers Inc. to underwrite the offering. The agreement stated that Security Brokers would sell 3 million shares to the public and provide $14 million in net proceeds to Beedles. The out-of-pocket expenses incurred by Security Brokers in the design and distribution of the issue were $220,000. What profit or loss would Security Brokers incur if the issue were sold to the public at the following average price

a. $5 per share

b. $6 per share

c. $4 per share

The explanation of the answer is now given as follows:

The profit or loss can be calculated using the following formula:

Profit or loss = Sales proceed - Net proceeds to Beedles - Out-of-pocket expenses incurred by Security Brokers ........... (1)

Where;

Sales proceed = Average price * Number of shares = Average price per share * 3,000,000

Net proceeds to Beedles = 14,000,000

Out-of-pocket expenses incurred by Security Brokers = $220,000

We can proceed as follows:

a. profit or loss at average price $5 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($5 * 3,000,000) - $14,000,000 - $220,000 = $780,000 profit

b. profit or loss at average price $6 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($6 * 3,000,000) - $14,000,000 - $220,000 = $3,780,000  profit

c. profit or loss at average price $4 per share

Substituting all the values into equation (1), we have:

Profit or loss = ($4 * 3,000,000) - $14,000,000 - $220,000 = -$2,220,000 loss

3 0
3 years ago
In a conversation between two parties, a statement like, "What I'm hearing you say . . ." is an example of:
dimaraw [331]
Communication involves both listening and speaking. When you say "What I'm hearing you say" is an example of reflective listening because you are trying to clarify the idea of what the other party is trying to imply. Then listener recaps the message using his own words and tries to give back the speakers idea to confirm if the idea has been understood. 
3 0
3 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
3 years ago
Assume you sell short 100 shares of common stock at $50 per share, with an initial margin at 50%. The stock paid no dividends du
son4ous [18]

Answer:

40%

Explanation:

Initial amount invested  = $50 × 100 × 50% = $2,500

Profit from sale and repurchase = ($50 - $40) × 100 = $1,000

Rate of return = $1,000 ÷ $2,500 = 0.40, or 40%.

Therefor, the rate of return would be 40%.

4 0
3 years ago
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