A bank is offering an interest rate of 6.00% per year, compounded every 2 months. What is the effective annual interest rate?

Answers

Answer 1

The effective annual interest rate is 6.16% when interest is compounded every 2 months at an interest rate of 6% per year.

Nominal interest rate = 6.00%

Compounding periods = 12 / 2 = 6 periods

We need to use the effective annual interest rate formula to calculate the interest rate for every 2 months.

The annual interest rate = (1 + (basic interest rate ÷ number of compounding years))^(number of compounding periods) - 1

substituting the values in the formula,

Effective annual interest rate = \((1 + (0.06 / 6))^6 - 1\)

Effective annual interest rate = \((1.01)^6 - 1\)

Effective annual interest rate = 1.061 - 1

Effective annual interest rate =  6.16%

Therefore, we can conclude that the effective annual interest rate is 6.16% when interest is compounded every 2 months.

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Related Questions

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.

Answers

Answer:

Liability will be $2,030,412

Explanation:

We need to calculate the present value of future cash flows in order to determine the liability value.

Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%

As we know the payment of $200,000 for 10 years is the annuity payment.

Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10

Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18

problem 2-3 dividends and retained earnings [lo1] nataro, incorporated, has sales of $675,000, costs of $337,000, depreciation expense of $81,000, interest expense of $50,500, a tax rate of 23 percent, and paid out $42,500 in cash dividends. what is the addition to retained earnings? (do not round intermediate calculations.)

Answers

The addition of retained earning of Nataro Inc is $116,505

Retained earnings are a company's cumulative net earnings or profits after dividend payments are deducted.

Formula for calculating the retained earning is:

RE = RE(o) + NI - D

where:

RE = retained earning

RE(o) =  beginning period retained earning

NI = net income

D = cash dividends

In the given problem:

sales = $675,000

cost = $337,000

depreciation expense = $81,000

interest expense = $50,500

Hence,

Gross income = sales - all expense

                       = 675,000 - (337,000 + 81,000 + 50,500)

                       = 206,500

Net income =  gross income - tax

                    = 206,500 - 23% x 206,500 = 159,005

Therefore, retained earning addition:

retained earning addition = RE - RE(o) =  NI - D

                                           = 159,005 - 42,500 = 116,505

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if a firm is earning negative accounting profits, it implies a. ​that the firm’s economic profits are necessarily positive b. ​that the firm’s economic profits are necessarily negative c. ​that the firm’s economic profits are necessarily zero d. ​accounting profits alone cannot determine economic profits

Answers

If a firm is earning negative accounting profits, it implies more information is needed to conclude about accounting profits.

Accounting profit is a company's net income or revenue fewer expenses. By deducting entire costs from the overall revenue or return of a business or investment, you may calculate economic profit. Businesses disclose their accounting gains to investors on their income statements as well as to the IRS for tax reporting purposes.

Because it contains all required reporting of both revenues and expenses, accounting profit is one of the main sources of information used by investors. As a result, it comprises the full cost of goods sold as well as all marketing, general and administrative, finance, and realized gain and loss costs.

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At the end of the fiscal period, Burton Company omitted the adjusting entry for depreciation
on equipment. The effect of this error on the financial statements is to

a. understate liabilities.
b. understate owner's equity.
c. overstate expenses.
d. overstate assets

Answers

The impact of the given error on the financial statement should be an overstatement of the assets.

Since the adjusting entry for depreciation is omitted i.e.

Depreciation expense Dr XXXXX

    To accumulate depreciation  XXXXXX

(being depreciation expense is recorded)

Here depreciation expense is debited as it increased the assets and credited the accumulated depreciation as it decreased the assets.

So if the above journal entry is omitted so it means the assets should be overstated.

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A goal that you want to achieve by next year is which type of goal?
A.
Short-term
B.
Intermediate
C.
Long-term
D.
Lifestyle

Answers

B, Intermediate. It isn’t a super lengthy goal but not one you could achieve over a few weeks of hours.

What is the standard deduction for marry filing joint for tax year 2017?

Answers

Answer: $12700

Explanation:

Standard deduction refers to the portion of income that's not being subjected to tax which can be used in the reduction of the tax bill. It should be noted that the amount of one's standard deduction will be based on the age, filing status, age, as well as some other criteria.

For taxpayers who don’t itemize, it should be noted that the 2017 standard deduction depends on the filing status and this include:

Single = $6,350

Married Filing Jointly = $12,700

Married Filing Separately = $6,350

Head of Household = $9,350

Qualifying Widow(er) = $12,700

Which government act protects the rights of people with disabilities?

Answers

1. Value yourself:

2. Taking care of yourself physically can improve your mental health. Be sure to:

Eat nutritious meals

Drink plenty of water

3. Surround yourself with good people

4. Break up the monotony

what roles are played by risk monitoring in the overall risk management process

Answers

Risk monitoring plays an essential role in the overall risk management process, including tracking and identifying potential risks to the project. Risk monitoring's primary function is to ensure that any potential risks that could threaten the project are appropriately identified and mitigated.

This process is generally broken down into five steps, including Risk Management Planning, Risk Identification, Risk Assessment, Risk Response Planning, and Risk Monitoring and Control. let us know how risk monitoring plays a crucial role in the risk management process. Risk Monitoring: The process of keeping track of the status of risks and actions taken to mitigate them is known as risk monitoring. This approach ensures that any potential threats to the project are appropriately identified, assessed, and managed.

As a result, risk monitoring plays an important role in the overall risk management process. The five stages of risk management include Risk Management Planning, Risk Identification, Risk Assessment, Risk Response Planning, and Risk Monitoring and Control. Risk Monitoring and Control, the final stage, helps to evaluate the effectiveness of the project's risk response strategies, track risks, and measure the overall risk exposure.

Thus, effective risk monitoring improves risk management outcomes by providing valuable insight into the effectiveness of the risk response plan.

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Write in short about medical occupation. Enlist its importance.

Answers

Answer:

Medical Occupations provides an introduction and broad exploration into several careers within the medical field including: Medical Assisting, Emergency Medicine, Veterinary Medicine, Dental Assisting/Hygienist, Geriatric Assistant, Pharmacy Technician, Physical Therapy, Surgical Technician and Nursing.

Explanation:

its importance are: The main focus of occupational health include promotion and maintenance of working capacity and employee health; improvement of working environment; development of work cultures and organizations to support health and safety; promotion of positive social climate and smooth operation; enhanced productivity of the ..

hope it helps you mark as brainlist

HELP PLEASE If in response to an increase in investment of $5 billion, equilibrium output rises by a total of $20 billion, then the marginal propensity to consume is

A) .8

B) .75

C) .7

D) .6

E) .85

Answers

Answer:

Pretty sure its B

Explanation:

lets say you have 20 take away 75% of 20 and your left with 5. every 5 Billion is 25%

Answer:

0.75 took the test

Explanation:

How many manufacturing companies are in the north Georgia area

Answers

Answer:in addition to being a right-to-work state, with low unionization rates (2.5%), our quality workforce is one reason why companies in automotive, machinery, and plastics industries are experiencing high job growth. Whether you are looking for engineering talent to further innovation in products or processes, or a skilled labor force to work on the plant floor, Georgia has the existing and future workforce to fulfill your hiring needs. Georgia is home to many companies with a history of innovation that has impacted their.

Around 10,000 on average

ATP is a vehicle manufacturing company which purchases most of the component from suppliers all around the globe. To minimize inventory costs, management decided to use Economic Order Quantity to control its inventory level. KWP is ATP’s long-term supplier for tire, and they have agreed to strict delivery time and quality requirement. Based on the 202X budget, the following information was collected from production:1. Based on pre-order, ATP requires 5250 units of tire each month for the first 4 months of the year and 3625 units of tires each month for the remainder of the year. 2. The carrying cost per unit is R2 per year. 3. The cost per order is R1,000.

Answers

Economic Order Quantity is 7071 units to control its inventory level. The following variables are necessary to determine the economic order quantity: demand rate, setup costs, and holding costs.

What are EOQ and its formula?

The following is the EOQ formula. EOQ equals the square root of [(2 times demand times ordering cost)/carrying charge]. Demand. The EOQ's assumptions state that the demand is unchanged. The measure of demand is how much inventory is used annually or how many units are sold annually.

Given,

Annual Requirement = 50,000 ( 5250 x 4 + 3625 x 8)

Carrying cost = 2 per year

Order cost = 1000 per order

Required to calculate EOQ =?

EOQ = square root of [(2 times demand times ordering cost)/carrying charge]

EOQ = √ 2 x 50000 x 1000/2

EOQ = √50,000,000

EOQ = 7071 units

Thus, the EOQ is 7071 units. Economic order quantity is crucial since it aids businesses in effectively managing their inventories. Without these inventory management strategies, businesses will frequently store excess inventory during times of low demand while holding insufficient inventory during times of strong demand. Missed opportunities result from either issue.

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Which of the following is an example of promotion?
A The quality of a product
B. The price of a product
C. An advertisement
D. An employee who works for your company

Answers

Answer:

A. An advertisement

Explanation:

Answer:

it is c

Explanation:

on edg 2021

These products include new products that supplement a firm’s established product line. Improvements or revisions of existing products: The new and improved product may be significantly or only slightly changed. is known as ____

Answers

The new and improved product may be significantly or only slightly changed is known as Product line extension.

What is meant by product line extension?

It refers to when a firm introduces new products that supplement their established product line, often involving improvements or revisions of existing products. These new and improved products may have significant or slight changes compared to the original versions.

Product line extensions are a common strategy used by companies to leverage their existing brand equity, customer base, and distribution channels to introduce new products that cater to different customer preferences or needs, or to capture additional market share.

For example, a company that manufactures and sells smartphones may introduce a line extension by offering a new model with upgraded features or a different form factor, or by launching a new color or design variation of an existing model.

Product line extensions can provide several benefits, such as extending the product life cycle, increasing customer loyalty, expanding market share, and leveraging existing brand recognition. However, they also come with risks, such as cannibalization of existing products, dilution of brand identity, and increased operational complexities. Therefore, careful market research, customer analysis, and strategic planning are important when implementing line extension strategies.

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how to estimate elasticity?

Answers

The formula for calculating elasticity is: Price Elasticity of Demand=percent change in quantitypercent change in price Price Elasticity of Demand = percent change in quantity percent change in price .

The interior angles of a hexegon are in the ratio 3:3:4:5:6:7. Find; (a) The size of the smallest angle. (b) The size of the largest angle​

Answers

Answer: (a) \(77\dfrac17^{\circ}\)  (b) 180°

Explanation:

Sum of interior angles of a polygon with n-sides: \((n-2)\times180^{\circ}\)

In hexagon, total sides: n =6

Given: The interior angles of a hexagon are in the ratio 3:3:4:5:6:7.

Let the angles be 3x , 3x, 4x, 5x, 6x, 7x

Then,

\(3x+3x+4x+5x+6x+7x=(6-2)\times180^{\circ}\\\\\Rightarrow\ 28x=4\times 180\\\\\\\Rightarrow\ x=\dfrac{4\times180}{28}\\\\\Rightarrow\ x=25\dfrac{5}{7}^{\circ}\)

Smallest angle= 3x = \(3\times \dfrac{180}{7}=77\dfrac17^{\circ}\)

Largest angle = 7x =\(7\times\dfrac{180}{7}=180^{\circ}\)

A few simple business questions, 50 points

A few simple business questions, 50 points

Answers

Answer: Human resource Management

Explanation: In a buisness people wouldn't be able to mantain employess and recruit new ones without HRM.

Recruitment and onboarding.Training and development.Compensation and benefits.Corporate policy.Employee relations.Risk management.

1.(Sunk Cost and Choice) Suppose you go to a restaurant and buy an expensive meal. Halfway through, despite feeling quite full, you decide to clean your plate. After all, you think, you paid for the meal, so you are going to eat all of it. What is wrong with this thinking?

Answers

Answer:

Sunk cost. The individual is still considering sunk cost in making future decisions

Explanation:

Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.

In this question, the money paid for the meal is the sunk cost and it shouldn't be considered in making the decision of whether to continue the meal or not to.

I hope my answer helps you

Use the sum-of-year depreciation method to calculate the depreciation for the
following scenario. Company XYZ bought a new machine for $100,000 and
expects the machine will last for 10 years.

Answers

Answer:

20%

Explanation:

How to Calculate Straight Line Depreciation

The straight line calculation steps are:

Determine the cost of the asset.

Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount.

Determine the useful life of the asset.

Divide the sum of step (2) by the number arrived at in step (3) to get the annual depreciation amount.

Straight Line Example

Company A purchases a machine for $100,000 with an estimated salvage value of $20,000 and a useful life of 5 years.

The straight line depreciation for the machine would be calculated as follows:

Cost of the asset: $100,000

Cost of the asset – Estimated salvage value: $100,000 – $20,000 = $80,000 total depreciable cost

Useful life of the asset: 5 years

Divide step (2) by step (3): $80,000 / 5 years = $16,000 annual depreciation amount

Therefore, Company A would depreciate the machine at the amount of $16,000 annually for 5 years.

The depreciation rate can also be calculated if the annual depreciation amount is known. The depreciation rate is the annual depreciation amount / total depreciable cost. In this case, the machine has a straight-line depreciation rate of $16,000 / $80,000 = 20%.

Use the sum-of-year depreciation method to calculate the depreciation for thefollowing scenario. Company

What value do financial ratios offer investors in reviewing the financial performance of a firm?.

Answers

The value that financial ratios offer investors in reviewing the financial performance of a firm includes insight on the company's:

profitabilityliquidityoperational efficiencysolvency.

What are financial ratios?

In accounting, a financial ratio is also known as a ratio analysis, which is a quantitative method of gaining an insight into a company's liquidity, operational efficiency and profitability by studying their financial statements such as the balance sheet and income statement.  This ratio analysis compares data from a company's financial statements to give an insights regarding profitability, liquidity, operational efficiency and solvency.

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Tensions that led to the French and Indian War were based on competition among

the French and American Indian groups.
European colonial powers.
different English colonies.
American Indian groups.

Answers

B) European colonial powers.

Answer: B

Explanation: I am big brain

1. In the POW camps of WWII, what did prisoners do with the contents of their Red Cross packages
that "maximized individual satisfaction"?*
(1 Point)
Prisoners gave away things they didn't want
Prisoners traded for what they wanted.
Prisoners hoarded their meager supplies.

Answers

Answer:

The correct option is;

Prisoners traded for what they wanted

Explanation:

In the war camps, being that there where no privileged persons, everyone had to trade what they where given as rations for what they needed and as such trading became predominant in the camp as those who could afford to manage without taking some of the package contents from the Red Cross such as beef, coffee, biscuits and cheese can trade for other items with some making small fortunes in cigarettes (which became more or less the currency) and biscuits.

Describe the arrangement many parents and students make if the parent decides to take out a Parent PLUS Loan.
I NEED A ANSWER AS QUICKLY AS POSSIBLE I NEED TO TURN IN THIS TODAY

Answers

Parents of dependent undergraduates may use Direct PLUS Loans, which are federal loans, to aid with the cost of attending college or a career school. PLUS loans can help pay for educational expenses that other types of financial aid do not cover.

Are parents need to obtain a parental PLUS loan?

A PLUS loan request from one parent only needs to be turned down. The student is not qualified for higher Stafford Loan limitations, though, if one parent is refused a PLUS loan while the other is authorized for one.

Is obtaining a parental PLUS loan simple?

Although parent PLUS loans have fewer stringent credit standards than student loans from private lenders, your application could still be rejected if you have a poor credit history that will last for longer than a year. contracts for the sale of products worth more than $500.

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Shida has had such great success with his IT consulting company for the last five years that he was able to pay himself a competitive salary within the first 18 months of operation. According to the GEM study, Shida is a/an ______.

Answers

Shida is seen as potential entrepreneur according to the GEM study.

GEM study is conducted by Global Entrepreneurship Monitor that tracked rates of entrepreneurship.

The study conducted on Shisa as a IT Expert shows that the company tries to understand how his entrepreneur skills enables him to pay himself a competitive salary within the first 18 months.

Therefore, Shida is seen as potential entrepreneur according to the GEM study.

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With the help of online research, write a short report on “glocalization.”

Answers

The phenomena of Glocalization, which is best described as Thinking Globally, Acting Locally, is created when the two terms of globalisation and localization are combined.

To put it more properly, we may say that although if a single brand is produced, sold, and distributed globally, it is nevertheless personalised and customised to suit the tastes and preferences of customers in the many global marketplaces.

It is carried out since each region of the world has its own unique culture, linguistic preferences, demands, and desires.

By adjusting their offerings and products to meet the needs of that specific market, businesses may effectively position and place their items, resulting in high revenues and devoted customers.

The following are all global brands, although they cater to the demands of their customers in various parts of the world while selling items.

Chips by Lays (They sell different flavours in different parts of the world, according to the taste preference and eating habits of that country).

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Under what circumstance would a country have a comparative advantage in
the production of a certain good?
A. It has a lower opportunity cost for production of that good.
B. It has a more highly skilled work force.
C. It has well-developed industrial capacities.
D. It uses an assembly line to produce that good.
Ap3x

Answers

Answer:  [A]   It has a lower opportunity cost for production of that good.

Explanation:  It has a lower opportunity cost for production of that good. Comparative advantage comes when a country gives up less than others to engage in a particular type of production.

Answer:

It has a lower opportunity cost for production of that good.

Explanation:

Under what circumstance would a country have a comparative advantage inthe production of a certain good?A.

A company purchases a piece of machinery. This machinery is now the company's _____.

A. asset
B. liability
c. equity
D. capital

Answers

When a company purchases a piece of machinery, the machinery becomes the company's A. asset.

What is an asset?

An asset is a resource owned or controlled by a business or an economic entity, which produces value or more resources.

Assets can be classified into three classes, and they generally fall into the following categories:

CurrentNon-currentPhysicalIntangibleOperatingNon-operating.

Thus, the machinery does not become a liability, equity, or capital but an asset.

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World's Largest Armies Rank Country Active 1 China 2,333,0002 United States 1,492,2003 India 1,325,0004 North Korea 1,190,0005 Russia 845,0006 Pakistan 643,8007 South Korea 630,0008 Iran 523,0009 Turkey 510,600 10 Vietnam 482,000 a. If the average North Korean farmer produces 1,800 pounds of food per year, what is the opportunity cost, in pounds of food, of North Korea's army? b. If a person needs at least 500 pounds of food per year to survive, how many people could have been fed with the forgone food output?

Answers

Answer:

a. 2,142 million pounds of food

b. 4,284,000 people

Explanation:

Opportunity costs are the additional costs or benefits lost resulting from choosing one activity or investment over another alternative.

In this case, a person from North Korea could be working as a farmer instead of being a soldier. Opportunity cost per soldier = 1,800 pounds of food per year. Total opportunity cost of North Korea's army = 1,800 pounds x 1,190,000 soldiers = 2,142 million pounds of food

this is equivalent to feeding 2,142,000,000 / 500 = 4,284,000 people

According to the law of demand, as prices increase, the quantity demanded by people .

Answers

Answer:

Quantity supplied will increase

Answer: decreases

Explanation: right on edmentum

A form of continuing involvement by s transferor that has relinquished control
is called?

Answers

The form of continuing involvement by a transferor that has relinquished control is called residual involvement.

A form of continuing involvement by a transferor that has relinquished control is called a "retained interest." This occurs when the transferor still has some financial interest or connection to the transferred asset, even after losing control over it.

Residual interest refers to the interest that a transferor retains in a financial asset after it has been securitized or sold to another party. This residual interest represents the portion of the original financial asset that the transferor has not transferred to the purchaser or investors in the new security.

In other words, the transferor retains a stake in the securitized financial asset, which provides an ongoing financial interest in the performance of the asset, even though they no longer have control over it.

For example, if a bank securitizes a pool of loans, they may retain a residual interest in the securitized loans, which gives them a stake in the cash flows generated by the loans. This residual interest may take the form of an ownership interest in the securitized loans or a right to receive a portion of the cash flows generated by the loans.

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