You can borrow $200 today and repay $215 in one week. What is the effective annual rate (EAR) implied by this 7.5 percent rate charged for only one week?

a. 45,602%
b. 4,198%
c. 14,104%
d. None of these are correct.
e. 1,164%

Answers

Answer 1

Answer:

Effective Annual Rate = 4,198%  (Approx)

Explanation:

Given:

Weekly rate = 7.5%

Find:

Effective Annual Rate

Computation:

Effective Annual Rate = (1+weekly rate)^52-1

Effective Annual Rate = (1+7.5%)⁵²-1

Effective Annual Rate = (1+0.075)⁵²-1

Effective Annual Rate = 4,198%  (Approx)


Related Questions

Partnership should be one of the 8 Ps, but it's not because it doesn't have enough of an effect on organizations.
O True
False

Answers

Answer:

I think true and thanks for point

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,050 units. The budgeted production units for July are:

Answers

Answer: 4,375 units

Explanation:

The budgeted production for July will be;

= July sales + Ending inventory - Beginning inventory

Ending inventory = 25% * August sales =25% * 4,900 = 1,225

Budgeted production = 4,200 + 1,225 - 1050 = 4,375 units

If Bounder Dog Supplies, Inc. purchased inventory at $2,200 list price and the terms were 3/10, n/30, what would be the value associated with the inventory if payment was made within 10 days? $2,200. $2,134. $2,334. $2,268.

Answers

Answer:

the  value associated with the inventory is $2,134

Explanation:

The computation of the value associated with the inventory is shown below

= Purchase value of the inventory - discount allowed

= $2,200 - $2,200 × 3%

= $2,200 - $66

= $2,134

hence, the  value associated with the inventory is $2,134

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

Suppose the Chief Financial Officer (CFO) of a company is interested in raising funds for a major investment by issuing bonds of varying maturity to investors. One of the longer-term bonds being issued can be purchased for $75,000.00 per bond and pays $7,125.00 annually to the investor. What is the anual interest rate on this bond

Answers

Answer:

9.5%

Explanation:

Interest rate on the bond = Annual payment on thr bonds / Cost of the bonds * 100

Interest rate on the bond = 7.125 / 75,000 * 100

Interest rate on the bond = 0.095 * 100

Interest rate on the bond = 9.5%

Thus, the annual interest rate on the bond is 9.5%

The inflation rate over the past year was 3.7 percent. If an investment had a real return of 9.2 percent, what was the nominal return on the investment?

Answers

Answer:

The nominal return on the investment is 13.2404%

Explanation:

The computation of the nominal return on the investment is shown below:

As we know that

nominal return = (1 + real rate) × (1 + inflation rate) - 1

= [(1  +0.092) × (1 + 0.037)] - 1

= (1.037 × 1.092) - 1  

= 13.2404%

Hence, the nominal return on the investment is 13.2404%

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

United States Steel Corporation’s (X) 7.5% bonds due in 2022 were reported as selling for 103.2.

Icon Were the bonds selling at a premium or at a discount? Why is United States Steel able to sell its bonds at this price?

Answers

Answer:

because they are able to create it at a lower price

Explanation:

As a result of the lower market interest rate for bonds of comparable quality, the bonds were being sold for a premium.

What are bonds?

The loan given by an investor to a debtor is represented by a bond, a fixed-income financial instrument. The terms of the loan and the payments are outlined in a bond, which can be compared to an I.O.U. between the lender and borrower.

The amount the bank charges the borrower when making a loan of any kind is referred to as the interest rate. This interest rate-based loan amount must be repaid by the borrower along with the principal sum.

Keeping in mind that investors are prepared to pay more for securities that have lesser potential risk, the bonds are going to sell for more than their nominal value if the market rate of return is lower than the contract rate of interest.

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What is a hallmark of essembly lines in Henry fords time?

Answers

Answer:

On December 1, 1913, Henry Ford installs the first moving assembly line for the mass production of an entire automobile. His innovation reduced the time it took to build a car from more than 12 hours to one hour and 33 minutes.

Explanation:

Tidy Limited purchased a new van on January 1, 2018. The van cost $36,000. It has an estimated life of six years and the estimated residual value is $3,600. Tidy uses the double-declining-balance method to compute depreciation. What is the adjusted balance in the Accumulated Depreciation account at the end of 2019

Answers

Answer:

$18,002.88

Explanation:

Depreciation Expense = 2 × SLDP × BVSLDP

Where,

SLDP = 100 ÷ Number of useful life

Therefore,

SLDP =  100 ÷ 6

         = 16.67 %

2018

Depreciation Expense = 2 × 16.67 % × ($36,000 - $3,600)

                                      = $10,802.16

2019

Depreciation Expense = 2 × 16.67 % × ($36,000 - $3,600 - $10,802.16)

                                      = $7,200.72

Accumulated Depreciation at the end of 2019 :

Accumulated Depreciation = $10,802.16 +  $7,200.72

                                             = $18,002.88

Evidence that a source is authoritative includes
a.
An email address to ask further questions about information in the source
c.
No verbiage used which could identify bias about the information provided
b.
A date regarding when the source was written
d.
Logical structure of the information provided so that it is easily read and understood


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

A is correct

Explanation:

its right

Answer:

a

Explanation:

edge2020

Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30% of earnings. Investors have a required return on FSL shares of 12.4%. The company has a profit margin of 10%, total asset turnover of 0.9, and total debt ratio of 0.4.
a) Calculate the ROE of the company.
b) Calculate the price of FSL shares.
c) How much of that price is due to future growth opportunities?

Answers

Answer and Explanation:

The computation is shown below:

a) For ROE of the company

As we know that

Debt ratio = 1 - (1 ÷  Equity multiplier)

0.4 = 1 - (1 ÷ Equity multiplier)

(1 ÷ Equity multiplier) = 0.6

Equity multiplier = 1 ÷ 0.6

= 1.6667

Now ROE is  

ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier

= 10% × 0.9 × 1.6667

= 15%

b) For the Price of FSL shares

Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio

= $3.50 × 30%

= $1.05  

And, Required Return(ke) = 12.4%

Growth Rate(g) = ROE × (1 - Dividend payout ratio)

= 15% × (1 - 0.30)

= 10.5%

And finally the Price of STock:-

= D1 ÷ (ke - g)

= $1.05 ÷ (0.124 - 0.105)

= $55.26

C. For  Present Value of Growth Opportunity(PVGO)

As we know that

Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)

= $55.26 - ($3.50 ÷ 12.4%)

= $27.03

In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.4 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production

Answers

Answer:

Fixed costs= $4,382,800

Explanation:

Giving the following information:

3.2 million hamburgers at a total cost of $5.4 million.

5.4 million hamburgers at a total cost of $6.1 million.

To calculate the fixed cost, we can use the high-low method. We will use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (6,100,000 - 5,400,000) / (5,400,000 - 3,200,000)

Variable cost per unit= $0.318

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 6,100,000 - (0.318*5,400,000)

Fixed costs= $4,382,800

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,400,000 - (0.318*3,200,000)

Fixed costs= $4,382,800

Historically, the ________ risk an investor is willing to accept, the ________ the potential return for the investment.

Answers

Answer:

The correct option is (A)  more, greater

Explanation:

According to the risk return trade off, the risk is increased with the return that means if the returns are increased the risk is also increased and vice versa

So as per the given scenario, if there is more risk that investor wants to accept so the return should be more for the investment. This represents the direct relationship between the risk and return of the investment

hence, the correct option is (A)  more, greater

g At the optimal quantity of a public good: A. marginal benefit exceeds marginal cost by the greatest amount. B. total benefit equals total cost. C. marginal benefit equals marginal cost. D. marginal benefit is zero.

Answers

Answer: C. marginal benefit equals marginal cost.

Explanation:

As is the case in the private sector , the optimal quantity of a public good is the quantity where Marginal benefit (revenue in private) equals marginal cost.

This is the optimal quantity because any quantity made that is more than this will result in marginal cost being greater than marginal benefit. This is therefore the highest quantity that can be produced without costs exceeding benefits so it is optimal.

Kate owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. Kate is considered a

Answers

Answer:

retailer

Explanation:

From the question, we are informed about Kate who owns a refreshment-stand business at the community ball park. She goes to a warehouse like Sam's and purchases snacks and canned soda that she will sell at her stand. In this case Kate is considered a retailer. A retailer is someone or business that buy goods from the wholesaler or manufacturers and sell to the consumer in small quantities. Their role is important because they are found in promoting sustainability of consumption and production.

During 2020, Benson purchased $1,450,000 of raw materials, incurred direct labor costs of $250,000, and incurred manufacturing overhead totaling $160,000. How much is total manufacturing costs incurred during 2020 for Benson?

Answers

Answer:Total manufacturing cost = $1,876,000

Cost of goods sold =$1,668,000

Explanation:

The  Total manufacturing costs is defined as  how much a company uses in production of  its inventory at a particular time. It takes three costs into consideration and they are Direct materials, Direct labor and Manufacturing overhead.

it is calculated using the formulae.

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead

Direct raw materials =Beginning raw materials +materials purchased -Ending raw materials

=84000+1,450,000-68000=$1,466,000

Total manufacturing cost =$1,466,000+ $250,000 +$160,000

= $1,876,000

The total manufacturing costs incurred during 2020 for Benson is $1,876,000

Cost of goods sold =  Beginning Inventory of Finished goodd + Cost of Goods – Ending Inventory Of finished goods.

 $100,000 +  $1,660,000 - 92,000

$1,668,000

Note :

The beginning inventory =the value of inventory at  end of the previous year.

Urban Bloom, Inc.'s books show an ending cash balance of $18,000 before preparing the bank reconciliation. Given the bank reconciliation shows outstanding checks of $4600, deposits in transit of $3600, NSF check of $260, and interest earned on the bank account of $170, the company's up-to-date ending cash balance equals:

Answers

Answer:

$17,910

Explanation:

With regards to the above, we would calculate the company's up to date ending cash balance as;

Up to date ending cash balance = Ending cash balance per books + Interest received from bank - NSF check

Up to date ending cash balance = $18,000 + $170 - $260

Up to date ending cash balance = $17,910

*Please note that outstanding checks and deposits in transit are used mainly to reconcile bank statements and not cash or book balance.

On February 28, Katherine wrote a check number 1021 to Hoopers Market for $189.43. Her beginning balance was $584.77. Calculate the new balance.

Answers

Answer:

Her new balance is $395.34

Explanation:

You take the starting balance of $584.77 and subtract it by the amount spent which was $189.43. Which gives you $395.34

Being held accountable and obligated to fulfill a commitment is ___.

Assets
Liability
Partnership
Logistics

Answers

The answer is Liability

Being held accountable and obligated to fulfill a commitment is Liability. Thus, option B is correct.

What is the liability?


A liability is defined as the future sacrifices of economic advantages that an entity is obligated to make to other entities as a result of previous transactions or other past occurrences.

In accounting, liability refers to any type of financial obligation that a company must pay to another person or company at the conclusion of an accounting period.

Financial advantages such as money, products, or services are used to satisfy liabilities. It is a company's future obligation to pay money to other persons or businesses.

Therefore, option B is correct, that being held accountable and required to fulfill a contract is Liability.

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What accounts for increases in both the relative wage and the relative employment of U.S. nonproduction workers during the 1980s?

a. The relative demand for nonproduction workers fell.
b. The relative supply of nonproduction workers rose.
c. The relative demand for nonproduction workers rose.
d. The relative supply of nonproduction workers fell.

Answers

Answer:

My Answer is D

Explanation:

Im not sureeee

A bank will often hold government securities as an asset. If a bank were to sell $100,000 in government securities to an individual who paid for the bond in cash and the bank placed this cash in their vault, by how much would the money supply change as a result

Answers

Answer:

e. It would decrease by S100,000.

Explanation:

Options are "a. It would increase by $100,000 multiplied by the reciprocal of the required reserve ratio. b. It would decrease by $100,000 multiplied by the reciprocal of the required reserve ratio. c. There would be no change to the money supply. d. It would increase by $100,000. e. It would decrease by $100,000."

An individual paid cash in exchange of bond to bank and bank has that cash in its vault. Now, the bank sells securities worth $100,000 to that individual. In this case, the cash at bank will decrease by the amount of securities, that is $100,000 and the money supply also reduce by the same amount of $100,000.

Moving truck makes the displacement of (180m) toward east in period of(9.0s). What is the average velocity of the truck?someone please help!!

Answers

Answer:

20m/s due east

Explanation:

Given parameters:

Displacement  = 180m due east

Time taken = 9s

Unknown:

Average velocity of the truck  = ?

Solution:

The average velocity is the displacement divided by the time taken;

   Average velocity  = [tex]\frac{displacement}{time}[/tex]  

Insert the parameters and solve;

 Average velocity = [tex]\frac{180}{9}[/tex]   = 20m/s due east

[tex]\mathrm {Hey, there!}[/tex]

Let's solve your problem:

20 m/s due east is your answer.

For this question, we will use the displacement method.

The displacement method states:

You divide the larger number by the smaller number.

--- [tex]\mathrm {Equation}[/tex] - [tex]\mathrm {180m / 9.0 = 20.0}[/tex]

How does increased competition through FDI in the form of greenfield investments affect the host country

Answers

Answer: It drives down prices and increases the economic welfare of consumers.

Explanation:

Greenfield investment is a form of Foreign Direct Investment where the investors build a facility/ies in the host nation from scratch as opposed to buying or leasing one.

With increased competition from greenfield investments, consumers would be better off because there will be more quantity of the relevant good available in the market. This will lead to the prices falling and consumers being able to afford more of the good at higher qualities.

. Is it illegal to drive without auto insurance?

Answers

Yes because if you get into a car accident and you’re at fault then you have to pay the claims. Hope this helped
Technically yes, but sometimes you aren’t caught. But it’s in your best interest to have it

John House has taken a $250,000 mortgage on his house at an interest rate of 6 percent per year. If the mortgage calls for 20 equal, annual payments, what is the amount of each payment?

Answers

Answer:

$21,796.14

Explanation:

Use the Time Value of Money techniques to calculate the amount of each installment (PMT)

PV = $250,000

i =  6 %

n = 20

P/yr = 1

FV = $0

PMT = ?

Using a Financial calculator to input the values as above, each annual instalment/payment will be $21,796.14.

Hyper, Inc. is a growing firm that chooses to payout only 20% of its earnings as dividends (thus, it has a plowback ratio of .8). Hyper expects EPS next year of $5 and and a Return on Equity of 15%. This ROE is expected to be maintained indefinitely and is also appropriate to use for Hyper's required return on equity. Given this information, what is the current price of Hyper, Inc. stock

Answers

Answer:

a.$33.33

Explanation:

Options are "a.$33.33 , b. $30.13 , c. $16.67 , d. $26.66"

EPS1 = $5

D1 = 0.20($5) = $1

Sustainable Growth Rate = (0.80)(0.15) = 12%

As per Dividend Discount Model,

Stock Price = D1/(r - g)

Stock Price = 1/(0.15 - 0.12)

Stock Price = $33.33

Therefore, the current price of Hyper, Inc. stock $33.33

The forces of love, affection, guilt, fear, or passion that compel consumers to buy

Answers

Answer:

food

Explanation:

what is the question

The forces of love, affection, guilt, fear, or passion compel consumers to buy food.

Who are the consumers?

Consumers are those people or a group who intends to order or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who are not directly related to entrepreneurial or business activities. The term most commonly refers to a person who purchases goods and services for personal use.

Consumers, by definition, include us all," said President John F. Kennedy, offering his definition to the United States Congress on March 15, 1962. This speech became the basis for the creation of World Consumer Rights Day, now celebrated on March 15. In an economy, a consumer buys goods or services primarily for consumption and not for resale or commercial purposes. Consumers pay some amount of money for goods or services.

As such, consumers play a vital role in the economic system of a capitalist system and form a fundamental part of any economy.

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As a meeting leader how should you aim to speak to the participants

Answers

Question: As a meeting leader, how should you aim to speak to the participants?

Answer: It's important you stay professional about things, so talk as formal as possible while still being comfortable enough for your peers to not be intimidated. Remember to be lively yet mature, loud but respectful, excited but diluted, etc.

Uplifting Note: Try making something tasty for your next meal, I made macaroons [not the little cookies, the coconut ones] for a snack!

This table can be used to organize Gigi’s credit card balances and payments over 6 months. The annual percentage rate on the credit card is 14%.

Gigi’s Credit Card Payments
Month
Balance
Payment
Interest Rate
Interest Charged
1
$650
$300
0.01167
$4.08
2
$354.08
$50
0.01167

3
$307.63
$50
0.01167

4
$260.64
$50
0.01167

5
$213.10
$50
0.01167

6
$165
$50
0.01167


What is the amount of interest charged for the first 6 months? (16.34)

Answers

The correct answer is the first option, or 16.34

Just got it right on the edge 2020 exam review, hope this helps!! :)

If you were an investor in a rent-to-own business that takes more than a year to collect revenues while the customers take immediate possession of the goods: Would you prefer to have the income statement prepared by cash basis or by accrual basis and why

Answers

Answer:

I would prefer cash basis over the accrual bases.

Explanation:

Remember accounting entries are prepared on the basis of Accrual Principle. That is transactions are recognized when they meet the definition and recognition criteria of assets, liabilities, incomes and expenses not when cash is received. Taxable Income calculation follows this accrual principle as well.

This means an will mean that as an investor in a rent-to-own business, i will be taxed more often on the Revenues which are not yet paid for and this will be bad for my liquidity.

I would want to have my cash and pay the taxes when i have actually received cash on my revenues so that i wont run into liquidity problems. This is only possible if the cash basis was to be used.

Where to write the account name? *
a)At the bottom of T account
b)At the top of T account
c)In the debit side
d)In the credit side

Answers

Answer:

b)At the top of T account

Explanation:

The account name is always written at the top of a T account. The account name is also the account title.

A T account has a standard format. The title or the name is what differentiates them.

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