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Dominik [7]
2 years ago
14

Say you are considering two loans. Loan F has a nominal interest rate of 5. 66%, compounded monthly. Loan G has a rate of 6. 02%

, compounded semiannually. Which loan will give the lower effective interest rate, and how much lower will it be? a. Loan G’s effective rate will be 0. 091 percentage points lower than Loan F’s. B. Loan G’s effective rate will be 0. 058 percentage points lower than Loan F’s. C. Loan F’s effective rate will be 0. 302 percentage points lower than Loan G’s. D. Loan F’s effective rate will be 0. 149 percentage points lower than Loan G’s.
Business
1 answer:
AnnZ [28]2 years ago
5 0

When the effects and impacts of compounding over time are taken into account, the effective annual interest rate is the true return on a savings account or any other interest-paying investment.

Option C is the correct answer:  Loan F's effective rate will be 0.302 percentage points lower than Loan G's.

<h3>Given</h3>

The interest rate on loan F is 5.66 percent per month, compounded.

The interest rate on loan G is 6.02 percent, compounded semi-annually.

<h3>Computations of effective rates</h3>

\text{Effective rate for loan F}:\\\\r = 1+\frac{0.0566}{12}^{12} - 1 \\\\\n=12\\\\\\text{or}\\\\\r=0.0580916\\\\\\\text{Effective rate for loan G}\\\\r = 1+\frac{0.0602}{12}^{2} - 1 \\\\\\n = 2\\\text{or}\\\\\r=0.0611106\\\\\\\text{ The difference between the loans for G and F}:\\\\=0.061106-0.058091\\\\=0.00302\\\\\text{or}\\\\=0.00302 \text{ x } 100\\\\=0.302 \text{percent}

Therefore, option c is the correct answer.

For more information about the related question, refer below

brainly.com/question/25857212

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While studying the process, it became evident to the team that people and equipment were not optimally positioned. Which process
Verizon [17]

Answer: Spaghetti map

Explanation:

A spaghetti map refers to as a visual representation that makes use of a continuous flow line that's used in the tracing of an activity for a particular process.

Since the people and equipment were not optimally positioned, the process map that would best help the team address this issue is the spaghetti map. It's vital as it helps in identification of workflow redundancies.

8 0
3 years ago
WalCo is a manufacturing company. Assume the estimated inventories on January 1, 2020, for finished goods, work in process, and
ASHA 777 [7]

Answer:

Cost of goods sold=$955000

Explanation:

we know that to calculate cost of goods sold we have to first finds cost of goods manufactured and to calculate cost of goods manufactured we will need total manufacturing cost.

Step#01: Total manufacturing cost=?

Total manufacturing cost= raw material used+direct labour+ factory overhead

Raw material used=?

     Raw material (open)=         72000

Add:  Raw material purchase=<u>467000</u>

                                                  539000

less: Raw material (ending)=   (<u>93000</u>)

      Raw material used            446000

Total manufacturing cost=446000+363000+213000=1021000

Step#2: Cost of goods manufactured (COGM)=?

we know that: COGM= Total manufacturing cost+ work in process (open)-work in process (end)

          COGM= 1021000+63000-84000=1000,000

Step#3: Cost of goods sold (COGS)=?

 we know that : COGS= Cost of goods manufactured+finished goods (open)-finished goods (ending)

               COGS= 1000000+171000-216000=955000

                                                   

6 0
3 years ago
When a firm adopts new technology, it is customary for firms':
Anna35 [415]
I believe the answer is:

a. cost curves to shift upward
6 0
3 years ago
Read 2 more answers
The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day.
frez [133]

Answer:

A) an increase in the price of other kinds of candy

Explanation:

If the price of substitute products (other types of candy) increases, then the suppliers of chewing gum can increase their price without the quantity demanded decreasing. If the decrease in the price of chewing gum is smaller than the increase in the price of substitute products, the quantity demanded will increase.

If there was a price increase of the main ingredients used to produce chewing gum, then the supply curve would shift to the left (option B is wrong).

If the workers signed an agreement that lowered their wages, then the supply curve would shift to the right (option C is wrong).

A decrease in the number of young people in the market would decrease the quantity demanded for chewing gum, which in turn would decrease the equilibrium price (option D is wrong).

A decrease in income would also decrease the quantity demanded, which would in turn decrease the equilibrium price (option E is wrong).

5 0
3 years ago
In year 2, Rossman Corp, changed its inventory method from FIFO to the weighted average method. The change resulted in a decreas
Mila [183]

Answer:

True

Explanation:

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As we know that:

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This means if the closing amount increases the cost of goods decreases and in the given scenario the closing inventory of year 1 has been decreased which means that the cost of goods sold has increased which will decrease the profit. And if the profit decreases then:

Earning per share = Profit after tax (Decreased) / Number of share (Same)

As the profit has decreased the earning per share will also decrease.

5 0
3 years ago
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