Effective versus nominal interest ratesBank A pays 8% interest compounded annually on deposits, while Bank B pays 7% compounded daily. Based on the EAR (or EFF%), which bank should you use?A. You would choose Bank A because its EAR is higher.B. You would choose Bank B because its EAR is higher.C. You would choose Bank A because its nominal interest rate is higher.D. You would choose Bank B because its nominal interest rate is higher.E. You are indifferent between the banks and your decision will be based upon which one offers you a gift for opening an account.Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year? Assume that your funds must be left on deposit during an entire compounding period in order to receive any interest.A. If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank A might be preferable.If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you have no intentions of making a withdrawal during the year, then Bank B might be preferable.B. If funds must be left on deposit until the end of the compounding period (1 day for Bank A and 1 year for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank B might be preferable.C. If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank B might be preferable.D. If funds must be left on deposit until the end of the compounding period (1 day for Bank A and 1 year for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank A might be preferable.
Answers
Answer:
A. You would choose Bank A because its EAR is higher.
C) If funds must be left on deposit until the end of the compounding period (1 year for Bank A and 1 day for Bank B), and you think there is a high probability that you will make a withdrawal during the year, then Bank B might be preferable.
Explanation:
Effective interest rate(EFF%) or EAR=[ (1+r/n)^n -1]
r= nominal interest rate
n= number of compounding period per year.
For bank A we have 8%
%FF%)=[(1+0.08/1)^1 -1]
= 1.08-1
= 0.08×100
= 8%
For bank B we have 7%
EFF%)=[(1+0.07/365)^365 -1]
= 1.0725-1
= 0.0725×100
= 7.25%
You would choose Bank A because its EAR is higher. i.e bank A has 8% and bank B
7.25 respectively.
.Could your choice of banks be influenced by the fact that you might want to withdraw your funds during the year as opposed to at the end of the year?
Yes, it will , because bank B will bring interest every day, so it will be preferable, in the case that the funds is withdrawable during the year and that no interest will be generated.
because for bank A to earn interest you will need to leave the fund there for the whole year incase the fund will remain as deposit for the compounding period for interest sake.
Related Questions
Which of these does research show is the best study technique?
Highlighting
Rereading
Doing practice questions
Summarization
Answers
Answer:
highlighting
Explanation:
Highlighting is characterized as the 'process of marking the significant or important information in a chapter or text.'
The most adequate study technique displayed by research is:
A). Highlighting
'Highlighting' helps the students keep their focus on the important details ideas of the text. This will not only assist the students in memorizing the information effectively but also in revising them during the exams as the important details are already highlighted. It allows the students in effective and efficient learning of the key concepts and to understand the texts comprehensively.
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Three years ago, Cornelius Matthews purchased 500 shares in the Vanguard Dividend Growth fund - a Morningstar five-star fund that invests in corporations that are currently paying dividends and is a fund that will provide a steady stream of dividend income. His rationale fort choosing this fund was that he wanted a fund that was conservative and highly rated. Each share in the fund cost $22. At the end of the three years, he received income dividends and capital gain distributions that total $3.62 a share for the three-year period. At the end of the three years, the shares in the fund were selling for $27.
How much did Mr. Matthews invest in this fund?
A$11,000
B$13,500
C$5.14
D$3.62
Answers
Mr. Matthews' investment in the Vanguard Dividend Growth fund was (A) $11,000
To determine how much Mr. Matthews invested in the Vanguard Dividend Growth fund, we need to calculate the cost of the initial investment of 500 shares at $22 per share:
500 shares x $22 per share = $11,000
Therefore, Mr. Matthews invested $11,000 in the fund.
We are also told that Mr. Matthews received income dividends and capital gain distributions that total $3.62 per share for the three-year period. To determine the total amount of dividends and distributions received, we can multiply $3.62 per share by 500 shares and by 3 years:
$3.62 per share x 500 shares x 3 years = $5,430
Therefore, Mr. Matthews received $5,430 in income dividends and capital gain distributions over the three-year period.
Finally, we are told that the shares in the fund were selling for $27 at the end of the three years. To determine the value of Mr. Matthews' investment at the end of the three years, we can multiply the current share price by the number of shares he owns:
500 shares x $27 per share = $13,500
Therefore, Mr. Matthews' investment in the Vanguard Dividend Growth fund was $11,000, and the value of his investment at the end of the three years was $13,500.
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How many miles is 64km?
Answers
Answer:
The Answer is 39.769 miles
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following:
Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line)
Machine A $ 39,000 $ 3,000 6 years $ 24,000 (4 years)
Machine B 53,000 4,000 8 years 36,750 (6 years)
Machine C 76,900 5,200 17 years 50,612 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $14,500 cash.
b. Machine B: Sold on December 31 for $10,725; received cash, $2,300, and a $8,425 interest-bearing (12 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.
Required:
Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Answers
Answer:
Merkley Company
a. Journal Entries:
January 1:
Debit Disposal of Machines $39,000
Credit Machine A $39,000
To transfer machine A to the Disposal of Machines account.
Debit Accumulated Depreciation $24,000
Credit Disposal of Machines $24,000
To transfer the accumulated depreciation of machine A to the Disposal of Machines account.
Debit Cash Account $14,500
Credit Disposal of Machines $14,500
To record the proceeds from disposal of machine A.
Debit Loss on Disposal of Assets $500
Credit Disposal of Machines $500
To record loss incurred on disposal of machine A.
b. December 31:
Debit Disposal of Machines $53,000
Credit Machine B $53,000
To transfer machine B to the Disposal of Machines account.
Debit Accumulated Depreciation $36,750
Credit Disposal of Machines $36,750
To transfer the accumulated depreciation of machine B to the Disposal of Machines account.
Debit Depreciation Expense $6,125
Credit Disposal of Machines $6,125
To record the depreciation expense for the year.
Debit Cash Account $2,300
Debit Notes Receivable $8,425
Credit Disposal of Machines $10,725
To record the proceeds from disposal of machine B.
Debit Disposal of Machines $600
Credit Gain from Disposal of Machines $600
To record gain from the disposal of machine B.
c. January 1:
Debit Disposal of Machines $76,900
Credit Machine C $76,900
To transfer machine C to the Disposal of Machines account.
Debit Accumulated Depreciation $50,612
Credit Disposal of Machines $50,612
To transfer the accumulated depreciation of machine C to the Disposal of Machines account.
Debit Loss on Disposal of Assets $26,288
Credit Disposal of Machines $26,288
To record loss incurred on disposal of machine C.
Explanation:
a) Data and Calculations:
Asset Original Residual Estimated Accumulated Book
Cost Value Life Depreciation Balance
Straight-line
Machine A $ 39,000 $ 3,000 6 years $ 24,000 (4 years) $15,000
Machine B 53,000 4,000 8 years 36,750 (6 years) $16,250
Machine C 76,900 5,200 17 years 50,612 (12 years) $26,288
b) Machine B recorded a gain on disposal because it was sold on December 31 of the current year. Thus the last year's depreciation expense must be provided. This automatically turned the difference between net book value and disposal proceeds into a disposal gain.
Design Thinking is the discipline of developing solutions to create significant
value for clients by keeping end user experience at its core.
True or False?
Answers
What is not a potential risk of purchasing a used car?
O used cars can require repairs sooner
O warranties can be very limited
O used cars can have lower initial cost
unexpected issues may arise
Answers
Answer:
used cars can have lower initial cost
Explanation:
Remember, the term risk often refers to an unpleasant or unwelcome event such as a loss arising from a particular action.
Hence, since we are looking for what is not a loss (potential risk) of purchasing a used car, the best option that matches this is that used cars have a lower initial cost which ofcourse can be seen as an advantage.
The fact that "used cars can have lower initial cost" is not a potential risk.
Potential risk in this context refers to various risk or issues that the used car can develop in the course of active use of the purchased car.
Usually, cars which are bought fairly requires more repair and maintenance than newly bought carsUsed cares are very susceptible to break-down at any point in time.Some others potential risk to this context includes:
They are less reliable because its good moment have been used by previous user.Ignorance of how the car have been managed in past may prove costly ir the routine is not adhered to.A used car usually have a shorter or no warranty.In conclusion, as this context i concern, the car having a lower initial cost is not a potential risk because the value ofa used car is expected to drop.
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Net exports equal
a. imports minus exports.
b.Y-(C + I + G).
c. Y-(C-1-G)
d. exports plus imports.
Answers
Answer:
b.Y-(C + I + G).
Explanation:
The net exports is determined when the import is deducted from the exports
i.e.
Net exports = Exports - imports
So according to the given situation, the first option is correct
As
GDP = Consumption + investment + government purchase + net exports
Here
GDP be Y
Consumption be C
Investment be I
Government purchase be G
So, the correct option is a.
analysis of marketing perspectives over time. As a business, what perspectives will you use to develop a sustainable business?
Answers
A company activity is typically viewed as sustainable if it is both financially feasible and socially and environmentally responsible. Businesses that incorporate ethical business practices and environmental awareness as key components of their growth strategy frequently produce sustainable economic values.
What do you mean by Business?An organization or enterprising entity engaging in commercial, industrial, or professional activity is referred to as a business.
An examination of the market might reveal information about your competitors and potential clients. The following are the main parts of the market analysis: Analyze the broad industrial environment in which you compete through industry analysis. Determines and quantifies the clients you will target for sales through target market analysis.
Therefore, A company activity is typically viewed as sustainable if it is both financially feasible and socially and environmentally responsible.
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In reviewing the Generally Accepted Auditing Standards (GAAS), there are three main conduct expectations identified, as follows:
Independence
Due care
Technical training and proficiency
Answers
The three main conduct expectations identified in the Generally Accepted Auditing Standards (GAAS) are independence, due care, and technical training and proficiency.
Independence requires the auditor to maintain an objective and impartial attitude throughout the audit process, avoiding any relationships or situations that could compromise their objectivity. Due care requires the auditor to exercise professional skepticism and diligence in planning, performing, and reporting on the audit.
Technical training and proficiency require the auditor to possess the necessary knowledge, skills, and expertise to effectively carry out the audit engagement, staying current with industry developments and professional standards. These conduct expectations serve as a foundation for ensuring the quality and integrity of audit engagements.
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--The complete question is, What are the three main conduct expectations identified in the Generally Accepted Auditing Standards (GAAS)?--
A successful data-driven market segmentation program depends on each of the following except:
a.
the rejection of tradiitional marketing research techniques
b.
the use of transactional and event data
c.
a common definition of market segments across all areas of the business
d.
developing a centralized and accessible CRM (Customer Relationship Management) database
Answers
A successful data-driven market segmentation program depends on the "use of transactional and event data", "a common definition of market segments", "and the development of a centralized CRM database" but it does not depend on "the rejection of tradiitional marketing research techniques".
The correct option to the given question is option a.
Traditional marketing research techniques, such as surveys, focus groups, and interviews, have long been used to gather insights about consumer behavior and preferences. While these techniques may have limitations, they still play a valuable role in understanding customer motivations and attitudes. Data-driven market segmentation programs can benefit from a combination of both traditional and data-driven research approaches. The use of transactional and event data is crucial for a data-driven market segmentation program. This type of data provides valuable information about customer behaviors, purchase patterns, and interactions with the business.
Having a common definition of market segments across all areas of the business ensures consistency and alignment in marketing efforts. This allows for targeted and personalized messaging that resonates with each segment. It also facilitates coordination between different departments, such as marketing, sales, and customer service, leading to a more cohesive and effective customer experience.
Finally, developing a centralized and accessible CRM database is essential for managing and analyzing customer data. It enables the integration of data from various sources, such as transactions, interactions, and demographic information, into a single platform. This centralized database provides a comprehensive view of customers, enabling more accurate segmentation and personalized marketing initiatives.
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Of the two scenarios, what do you believe is best; please explain why? 1) Submitting an underwriting model that is 80% complete but on-time 2) Submitting an underwriting model that is 100% complete but past the deadline. *
Answers
The best scenario would be to present a subscription model that is 80% complete but on time.
What is a underwriting model?This model is an economic tool used by banks and financial institutions to assess the level of vulnerability in terms of non-payment to avoid or reduce the possibilities of credit risk.
According to the above, the best scenario is 80% on time because it will give an indicator of more than half to know the vulnerability of the financial risk since the other option already exceeds the established time and would not be of any use.
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provide the name of the financial institution and the account name
Answers
Explanation:
Global investment banks include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Credit Suisse, and Deutsche Bank.
Monopoly firms face a. downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve. b. horizontal demand curves, so they can sell only a limited quantity of output at each price. c. horizontal demand curves, so they can sell as much output as they desire at the market price. d. downward-sloping demand curves, so they can sell as much output as they desire at the market price.
Answers
Answer:
Option d (downward..................................market price) would be the right approach.
Explanation:
The monopoly is attributed to the idea that an organization and therefore its distribution channels control one market or business. Monopolies may be called a social consequence of unlimited access competition and therefore are frequently further used to characterize an organization that had already absolute or relatively close market power.Other options aren't connected to something like the situation in question. So the above alternative seems to be the right one.
According to the College Board, how much more money do people with a
bachelor's degree tend to earn than those with only a high school diploma?
This is after accounting for the cost of the degree.
Answers
According to the College Board, individuals with a bachelor's degree tend to earn significantly more money than those with only a high school diploma. The earnings gap between these two educational levels is substantial, even after accounting for the cost of obtaining a bachelor's degree.
On average, individuals with a bachelor's degree earn about 66% more than those with only a high school diploma. This earnings premium varies based on factors such as the field of study, occupation, and individual circumstances. However, the College Board's research consistently shows that higher levels of education correlate with higher earning potential.
It is important to note that while a bachelor's degree can significantly increase earning potential, there are other factors that contribute to individual earnings, such as experience, skills, and market demand. Additionally, individual outcomes may vary, and it's important to consider the broader benefits of education beyond just financial gain, such as personal growth, expanded opportunities, and enhanced critical thinking skills
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1 Acts (Laws passed by a government (e.g. the Parliament of South Africa) in accordance with the Constitution of
the country
Answers
Acts, also known as laws, are legislative measures that are passed by a government in accordance with the Constitution of a country.
The process of passing an Act typically involves several stages. It begins with the proposal of a bill, which is a draft law that is presented to the legislative body. The bill goes through a series of readings and debates, during which it may be amended or revised based on input from legislators and stakeholders.
Once the bill is approved by the legislative body, it is sent for further scrutiny, such as legal review and public consultation. Finally, the bill is enacted into law by receiving formal approval, usually through the signature of the head of state or a designated authority.
Acts play a crucial role in shaping the legal framework of a country. They cover a wide range of areas, including civil rights, criminal justice, taxation, environmental protection, labor regulations, healthcare, education, and many more.
Acts provide a legal basis for the functioning of government institutions, define citizens' rights and responsibilities, establish standards for public and private conduct, and promote social order and justice.
Acts are binding and enforceable, meaning that individuals and entities within a country are obligated to comply with their provisions. Violation of an Act can result in legal consequences, such as fines, penalties, or imprisonment, depending on the nature and severity of the offense.
Acts also reflect the evolving needs and values of a society. As societal perspectives change and new challenges emerge, governments may pass new Acts or amend existing ones to address these issues. Acts can be updated and repealed over time to ensure that the legal framework remains relevant and responsive to the needs of the people.
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¿In two to three sentences, explain why it is important to have insurance.?
Answers
Answer:
Explanation:
Insurance protects yourself, your assets, or even your family against financial loss. Oftentimes, events, such as cancer or a car accident, are random and have the potential to financially run people. Insurance is a way to reduce the financial impacts of these risks.
If the adjustment for Supplies used during the period wasn't made,
A. revenue would be too high.
B. assets would be too low.
C. expenses would be too low.
D. expenses would be too high,
Answers
Answer:
D
Explanation:
It will give the suppliers an upper hand or edge over the consumers
Answer: think its expenses would be to low
Explanation:
Could This firm produce an output of 200 at an average total cost of $20?
Answers
Answer:
yes
Explanation:
Explanation: Hope you get it right
including scholarships and financial aid Rachel has 39,000 to spend on college if the total cost of her college education is_____, she will have enough resources to pay
a 36,000
b 42,000
c 48,000
d 45,000
Answers
Answer:
A. 36,000
Explanation:
If the college education cost is less than your financial aid limit then it can pay for it.
Answer:36,000
Explanation:because it say it
QUESTION 3: 3.1 Assume that the South African government have requested you to do a CBA with regard to the two projects. Conduct a research about the two pictures below and answer the questions that follow: PROJECT 1: COSTS AND BENEFIT ANALYSIS PROJECT 2 3.1.1 Identify the TWO projects needed by the South African citizens. 3.1.2 List any TWO private costs that will be incurred in project 2. (2 x 1) (2) (2 x 1) (2) 3.1.3 Why should the government apply the cost benefit analysis for big projects? (8) 3.1.4 Examine the external benefits of Project 1 illustrated above? [20] A Pr
Answers
For the two projects, the South African government has asked for a cost and benefit analysis (CBA), although no precise details or drawings of the projects have been provided.
However, it is clarified that carrying out CBA is important for large scale initiatives as it helps in determining their economic viability and social impact. Decision makers can choose wisely on the basis of net benefit derived from the initiative by weighing the costs and benefits.
The term "external benefit" refers to good outcomes on society as a whole, including social welfare, job growth, environmental sustainability, and infrastructure improvements. But without more details or visuals it's impossible to give specific feedback or evaluate the external benefits of Project 1. It is advised to refer to the actual images and related data to conduct a complete examination.
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2. Should the U.S. government support U.S. tobacco company interest abroad if they are using harmful tactics
Answers
When a tactics is harmful causing various harms to human health or posing threat it should not be supported.
What are Harmful tactics?They are some actions that are taken a particular time to achieve a particular goal and objective which is short time.
This actions are harmful and the results are usually detrimental.
Therefore, U.S. government should not support U.S. tobacco company interest abroad if they are using harmful tactics.
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Help pleaseee!
The members of the Federal Reserve System must hold some of their deposits in cash in their vaults. This represents?
A - discount rates
B - reserved requirements
C - selective credit controls
D - open market operations.
Answers
Answer:
B-reserved requirements
Explanation:
You purchase a dishwasher for 1261 .60 plus 7% sales tax. The appliance store offers an loan that allows you to pay for the dishwasher by making 12 equal monthly payments of $123.74 What is the cost of credit, in , for this loan? Round your answer to the nearest cent.
Answers
The cost of credit for this loan is $134.97.
What is the cost of credit?The cost of credit represents the difference between the total payments made and the original mortgage value.
It is also called the finance charge.
Data and Calculations:Purchase price = $1,261.60
Sales tax = 7% or $88.31 ($1,261.60)
Monthly instalment = $123.74
Payment period = 12 months
Total payment for 12 months = $1,484.88 ($123.74 x 12)
Cost of credit = $134.97 ($1,484.88 - $1,261.60 - $88.31)
Thus, the cost of credit for this loan is $134.97.
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Buying a home achieves which two financial goals at the same time?
a. Providing a place to live, paying for your college expenses
b. Providing a place to live, paying off your consumer debt
c. Providing a place to live, investing for the future
d. Providing a place to live, bringing you great happiness
Answers
Explanation: If you buy a house you one now have a place to live and two are setting yourself up for the future.
Why would police file an affidavit of probable cause before a person is
arrested?
O A. To obtain an information
B. To be allowed to read Miranda rights
C. To obtain a search warrant
O D. To schedule an arraignment
SUBMIT
Answers
Answer:
A
Explanation:
they have to know what the person is being arrested for
Think about people, organizations, agencies, or projects that need help in your neighborhood or city. List them below along with a description of how you can help.
Answers
There are several ways to contribute to the development of your neighborhood or city.
You can start researching which social projects and institutions are active in your neighborhood and seek information on ways you can help them.
A simple way to start helping the community with a positive impact is to organize a selective garbage collection and recycling system, so that there is a reduction of polluting waste on the planet and the promotion of good sustainability practices.
You can also help:
work in NGOs, develop tutoring programs for students, create book clubs, support programs for people in needWith small acts and good will, you are able to transform your community into a better place with a better quality of life for everyone who lives in it.
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Question 2a. A car rental agency charges $75 per day plus 70 cents per mile. How
much does it cost to rent a car for a 1-day trip of 50 miles?
Answers
It will cost 250 dollars to rent a car for a 1-day trip of 50 miles.
What is arithmetic progression?A number sequence that has a common difference between them. It is important to mention that the difference between the consecutive numbers is fixed and constant, and it remains the same throughout the sequence.
Given that,
Car rental charge = $75/day
Cost per mile = 70 cents/mile or, $3.5 [1 cent = $0.05]
Distance to be traveled in the 1-day trip = 50 miles
Total cost of 50-mile trip = 50 x 3.5 = $175
Per day car rental charge = $75
Total cost of car rent = $175 + $75 = $250
It can be concluded that it will cost 250 dollars to rent a car for a 1-day trip of 50 miles.
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Discuss the relationship between competition and consumer expectations.
Answers
Answer:
The relationship between competition and consumer expectations is by what the compitition is creating in terms of product and functionability. And the consumer expectation is what will help the by buying into this product.
Explanation:
The owner of a factory regularly requests a graphical summary of all employees' salaries. The graphical summary of salaries is an example of
Answers
Answer: descriptive statistics
Explanation:
The owner of a factory regularly requests a graphical summary of all employees' salaries. The graphical summary of salaries is an example of the descriptive statistics.
Descriptive statistics refers to the branch of statistics that describes features of a data that are involved in a study. The main idea behind the descriptive statistics is simply to provide a summary of the samples that are done on a certain study.
(2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}
Can someone please help me to do this step by step? :(
Answers
Answer:
10
Explanation:
first solve in parenthesis
2+45) + [(+3) + (-4)] + {(+6) + [(-14) + (-13) + (+9)] + (-17)}
46+(-1)+(-35)
46-1-35
10
hope this helps
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