The Central Bank requires commercial banks to have a "reserve ratio" of 1.25 percent. When a commercial bank receives a new deposit of $2,000 from a client who has had it under their mattress for years.
The reserve ratio, also known as the reserve requirement, is the amount of money that commercial banks must keep in reserve with the Central Bank. It is an essential tool for controlling the country's money supply, which affects the economy's overall health. The Central Bank mandates this requirement because it wants to make sure that banks have enough money in reserve to meet their financial obligations to their clients if necessary.
Now, let's see how the Central Bank's mandated reserve ratio of 1.25 percent relates to the $2,000 deposit from the customer. The bank will hold a portion of this deposit in reserve, as per the Central Bank's requirements. It will lend out the remainder of the money to make a profit on interest. Since the reserve ratio is 1.25 percent, the bank must keep 1.25 percent of the deposit in reserve and lend out the remaining 98.75 percent.
To know more about mandates visit:
https://brainly.com/question/32096171
#SPJ11
Calculate the value of a bond that is expected to Mature in to 18
years with a $1000 face value . The coupon rate is 4%, and the
required rate of return is 8% . Intrest is paid annually
A bond is a debt security instrument that is issued to raise funds by the borrower or issuer. It promises to pay the bondholders a fixed interest rate on the face value of the bond until the maturity date.
The face value is also called the principal, and it is the amount that is borrowed by the issuer. Calculation of the bond value that is expected to mature in 18 years with a [tex]$1000[/tex] face value with an annual coupon rate of 4% and the required rate of return is 8%.
The interest is paid annually using the formula for bond valuation;
[tex]Bond Value = (Annual Coupon Payment / Required Rate of Return)[/tex]
*[tex][1 - 1 / (1 + Required Rate of Return) ^ Number of Years][/tex] + [tex]Face Value / (1 + Required Rate of Return) ^ Number of Years.[/tex]
Using the given values, we have:
[tex]Annual Coupon Payment = Face Value[/tex]
[tex]* Coupon Rate= $1000[/tex]
[tex]* 4% = $40[/tex]
[tex]Required Rate of Return = 8%[/tex]
[tex]Number of Years = 18[/tex]
Using the values in the formula, we get:
[tex]Bond Value = ($40 / 8%)[/tex]
[tex]* [1 - 1 / (1 + 8%) ^ 18] + $1000 / (1 + 8%) ^ 18= $500[/tex]
[tex]* (1 - 0.1874) + $261.47[/tex]
[tex]= $406.53 + $261.47[/tex]
[tex]= $668[/tex]
The bond value that is expected to mature in 18 years with a [tex]$1000[/tex] face value with an annual coupon rate of 4% and the required rate of return is 8% and the interest is paid annually is [tex]$668[/tex].
To know more about instrument visit:
https://brainly.com/question/28572307
#SPJ11
Bank Negara Malaysia has joined the ranks of countries that have raised interest rates in the fight against inflation. In a somewhat surprise move, the central bank has increased its overnight policy rate (OPR) to 2% from a record low of 1.75%, where it had been since July 2020. A Bloomberg survey found that 19 out of 24 economists had forecast an unchanged OPR of 1.75%.
In its monetary policy statement, Bank Negara cited the sustained improvements in domestic demand on the back of sustained export growth and lower unemployment rate amid improvements in the labour participation rate as factors behind the policy action. The country’s transition to Covid-19 endemicity, along with the reopening of borders and relaxation of movement restrictions, will also help drive economic activity.
Key risks to growth cited include the further escalation of geopolitical conflicts, supply chain disruptions, adverse change in the development of Covid-19 and weaker-than-expected global growth. Looking at central banks around the world, it all started with the US Federal Reserve raising the Fed funds rate by 0.5% this month. It has guided for similar hikes to take place in June and July, followed by three more 0.25% hikes before the end of 2022.
Other central banks in Asia-Pacific such as the Reserve Bank of Australia and the Reserve Bank of New Zealand have done similar things to tighten monetary conditions, citing the need to control inflationary pressures that were already high due to supply chain disruptions and later made worse by the Russia-Ukraine crisis.
In Malaysia, headline inflation is projected to average between 2.2% and 3.2% in 2022, with core inflation likely to average between 2% and 3%. The less aggressive price pressure is the result of existing price controls put in place and spare capacity in the domestic economy.
While Malaysia’s inflation outlook remains well within normal range, the need for low, business-supportive interest rates is no longer apparent. Back in 2020, when on account of the pandemic, Bank Negara reduced the OPR a record 1.25% (to 1.75% from 3%) over a short span, it was to ensure ample monetary support during such unprecedented conditions. However, the domestic economy has recovered and is on firmer ground. The central bank has thus guided for a measured and gradual increase of the OPR while remaining accommodative to sustain a healthy economy.
Such a global environment of elevated inflation, accelerating interest rates, rising government bond yields and a strong US dollar presents a sober outlook for the global economy. Indeed, growth prospects have dimmed somewhat for 2023 to reflect not only the above factors but also the disruption caused by the Covid-19 lockdowns in China. Even as the Chinese government has refocused its attention on its previous pro-growth strategy, the dynamic zero- Covid policy lockdowns are likely to have an impact on economic growth in the immediate aftermath
(Source: The Edge Malaysia- June 7, 2022- Michael Lai)
Based on the article above, answer the following questions:
3
a) What is inflation, and what causes it?
b) What does high inflation indicate about the economic conditions?
c) Elaborate TWO (2) factors which cause inflation to accelerate globally
d) "Key rfsks to growth cited include the further escalation of geopolitical confiicts, supply chain disruptions, adverse change in the development of Covid-19 and weaker- than-expected global growth". Based from this statement, what type of risk is cited in the article? Justify your answer
e) What is the relationship between inflation and interest rate, and how does it affect the investor’s required rate of return?
What are the THREE (3) factors which caused Bank Negara Malaysia to increase the interest rate? Do you think this move can help our country to beat the inflationary pressure?
Yes, this move can help Malaysia to beat inflationary pressures by reducing excess demand and controlling the supply of money, which can help to stabilize prices and promote economic growth in the long run.
a) Inflation refers to the rate at which the general price level of goods and services is increasing over a certain period of time. It is caused by several factors including excess demand and low supply, cost-push inflation, demand-pull
inflation, and monetary factors such as an increase in money supply.
b) High inflation indicates that the general price level of goods and services is increasing rapidly, which can lead to a decrease in purchasing power and a reduction in the standard of living.
c) Two factors that cause inflation to accelerate globally are supply chain disruptions and rising commodity prices. Supply chain disruptions can cause shortages of goods, which lead to increased demand and higher prices.
d) The type of risk cited in the article is economic risk. This is because the factors mentioned, such as geopolitical conflicts, supply chain disruptions, adverse changes in the development of Covid-19, and weaker-than-expected global growth, all have the potential to negatively impact economic growth and stability.
e) Inflation and interest rates have an inverse relationship, meaning that when inflation rises, interest rates tend to increase as well. This is because central banks raise interest rates to combat inflation by reducing the amount of money in circulation, which can help to slow down the rate of inflation.
The three factors that caused Bank Negara Malaysia to increase the interest rate are sustained improvements in domestic demand, the country's transition to Covid-19 endemicity, and the need to control inflationary pressures.
Know more about the cost-push inflation
https://brainly.com/question/25800106
#SPJ11
please help solve!
14,675 decrease 3,850 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (AmoL deducted should be indicated with a minus sign.)
Given information:14,675 decrease3,850 decrease Prepare the operating activities section of the statement of cash flows using the direct method. (AmoL deducted should be indicated with a minus sign.)Operating activities: Operating activities refer to the main activities that are undertaken by a company for generating revenue. Direct method: Under this method, cash inflow and cash outflow are calculated separately.
Preparation of operating activities section of cash flow statement :Calculation of operating activities: Cash inflows from operating activities: Sale revenue - 3,850Add: Decrease in account receivable - 14,675Cash generated from operations - (3,850 - 14,675) = $10,825Cash outflows from operating activities :Payments made to suppliers -Amount paid to employees -Cash paid for other expenses -Total cash outflows from operating activities -Net cash inflow from operating activities - $10,825 (computed above) - $0 (as no financing or investing activities are given) = $10,825Therefore, the operating activities section of the statement of cash flows using the direct method will be as follows: Operating Activities Cash inflows from operating activities: Sale revenue$ 3,850Decrease in account receivable$ 14,675Cash generated from operations$ 10,825Cash outflows from operating activities: Payments made to suppliers Amount paid to employees Cash paid for other expenses Total cash outflows from operating activities Net cash inflow from operating activities$ 10,825
learn more about company here:
https://brainly.com/question/30532251
#SPJ11
the beginning of december ,global corporation had 2,000 in supplies on hand.during the month supplies purchased amounted to 3000,but by the end of the month the supplies balance was only 800 .what is the appropriate month end adjusting entry
The Adjusting entries is debit supplies expenses account by 2200 and credit supplies account by 2200.
The appropriate month-end adjusting entry in this case would be to record the decrease in supplies and adjust the balance accordingly.
To do this, we need to calculate the difference between the supplies purchased and the supplies balance at the end of the month:
Supplies purchased: 3000
Supplies balance at the end of the month: 800
Difference: 3000 - 800 = 2200
Since the supplies balance decreased by 2200, the adjusting entry would be to debit the supplies expense account and credit the supplies account:
Debit: Supplies Expense - 2200
Credit: Supplies - 2200
This adjusting entry will reflect the decrease in supplies and adjust the balance to the correct amount at the end of the month.
To know more about Adjusting entries here
https://brainly.com/question/33175618
#SPJ4
A company had average total assets of $3,660,000, total cash flows of $2,520,000, cash flows from operations of $505,000, and cash flows from financing of $1,350,000. The cash flow on total assets ratio equals: Multiple Choice 13.80% 13.10%. 68.85% 24.90%,
Option (a), The cash flow on total assets ratio equals 13.80%.
Cash flow on total assets ratio is calculated by dividing the net cash flows from operations by the average total assets. The cash flow on total assets ratio is a measure of how well a business has generated cash flow from its assets. It determines the percentage of cash generated from the company's assets. Thus, the cash flow on total assets ratio is an important metric to calculate to assess a company's financial performance.
The formula to calculate the cash flow on total assets ratio is as follows:
Cash flow on total assets ratio = Cash flow from operations / Average total assets
Given that the company had average total assets of $3,660,000, total cash flows of $2,520,000, cash flows from operations of $505,000, and cash flows from financing of $1,350,000. Therefore, the average total assets can be calculated as follows:
Average total assets = ($3,660,000 + $3,660,000) / 2= $3,660,000
Cash flow on total assets ratio = Cash flow from operations / Average total assets
= $505,000 / $3,660,000
= 0.1380
Therefore, the cash flow on total assets ratio equals 13.80% Hence, option A is correct.
Learn more about cash flows from financing: https://brainly.com/question/29820891
#SPJ11
find the definition of each one of those key terms:
Value added
Nominal GDP
Real GDP
base year
inflation
production possibilities
depreciation
net domestic product (NDP)
investment
gross investment
net investment
exports
imports
net exports
national income (NI)
personal income (PI)
disposable income (DI)
saving
Real GDP: Real GDP, also known as inflation-adjusted GDP, is a measure of the value of all final goods and services produced within a country's borders in a given period, usually a year, at constant prices.
Value added: Value added is the increase in value of a commodity or service that takes place at each stage of production, from raw materials to finished goods. The market price of the commodity or service minus the cost of all inputs and raw materials is referred to as the value added.
Nominal GDP: Nominal GDP is a term that refers to the total value of all final goods and services produced within a country's borders in a given period, usually a year, at current prices.
Base year: A base year is a year against which other economic data is compared. I
nflation rates, GDP, and other economic statistics are frequently calculated relative to a specific base year.
To know more about commodity visit:
https://brainly.com/question/32297758
#SPJ11
Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent. The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%. With the fall in interest rates the company's Finance Manager has recommended that the bond be refunded. The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated. Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent. Required: Advise Blue Mountain Distributors on whether or not they should refund the bond. (Show all calculations)
Given:Blue Mountain Distributors has a $40 million bond outstanding that carries a 12 percent coupon rate paid annually. Current bonds yield are 9.5 percent.
The $40 million bond was issued 20 years ago with 30 years to maturity and carries a call premium of 5%.The new bond issue would require $1.2 million in underwriting cost and an overlap period of one month is anticipated.Short term money market rates are currently 7 percent and Blue Mountain has a tax rate of 40 percent.To find:Should Blue Mountain Distributors refund the bond?Solution:The call price is the present value of $1000 paid annually for 30 years and discounted at 12% plus 5% premium for a bond callable at $1050.Call price = PV of annuity + premium= $1000 × [1 - 1/(1.12)30] / 0.12 + $1050 × (1 / 1.12)30= $9379.36 + $118.46= $9497.82
The company would receive $9497.82 for every $1000 bond if they decide to call the bond.The current value of the bond is the present value of $120 coupon payment plus the present value of the call price discounted at the yield to maturity.Yield to maturity (YTM) of old bond = 12%Current yield of bonds = 9.5%Therefore, the bond price should be higher than its par value, so it is selling at a premium.
To know more about bonds visit:
https://brainly.com/question/29282058
#SPJ11
Philadelphia Supply Corporation (PSC) produces and distributes various products for the hospitality industry. It is organized in two divisions: Assembly and Packaging. The managers of both divisions are evaluated and compensated based on divisional income. Assembly only "sells" to Packaging. Packaging prepares the items for a particular customer (adding labels, logos, and so on), prepares them for delivery, and ships them to the customer.
Information on revenues and costs for the latest quarter for each division follows. Production and sales quantities, measured in "standard units," were 3,000 units for the quarter.
Assembly Packaging
Sales revenue $ 195,000 $ 900,000
Direct materials 105,000 385,000
Direct labor 55,000 170,000
Variable overhead 20,000 45,000
Fixed costs 40,000 180,000
A local hotel is hosting a special convention next month and has asked for a special price for 500 units at a total price of $102,500. After hearing about the order, the Assembly Division manager insists that the transfer cost (the transfer price multiplied by 500 units) be set at $40,000. There is sufficient excess capacity in Assembly to handle the special order.
Required:
1. What is the current transfer price for a unit?
2. Does PSC (the corporation) want to accept this order?
3. Will the Assembly Division manager be willing to accept this order if the transfer cost is $40,000?
4. Will the Packaging Division manager be willing to accept this order if the transfer cost is $40,000?
1. The current transfer price for a unit: Transfer price is the price at which one division sells its products to another department or division within the same company. In the case of PSC, the Assembly department sells its products to the Packaging department.
In this instance, the transfer cost per unit is calculated as follows:$40,000/500 units = $80 per unit, therefore the current transfer price per unit is $80.2. Does PSC (the corporation) want to accept this order?The total cost per unit for this special order will be $205 per unit.
The current selling price for Packaging is $300 per unit. Thus, the corporation should agree to the order since it would generate a profit of $95 per unit.3. Will the Assembly Division manager be willing to accept this order if the transfer cost is $40,000.
The total cost per unit for this special order will be $205 per unit. The current transfer cost is $80 per unit. Therefore, it is reasonable to conclude that the Assembly Division Manager will be happy to accept this order, given that it generates a profit of $125 per unit ($205-$80).4.
Will the Packaging Division manager be willing to accept this order if the transfer cost is $40,000?Yes, since the transfer cost per unit is significantly less than the current selling price per unit of $300.
This means that Packaging Division will still make a profit even though they are giving a special discount for the 500 units of product.
To know more about division visit:
https://brainly.com/question/1575906
#SPJ11
which of the following would typically be the first long-term asset category reported on a classified balance sheet?
The first long-term asset category typically reported on a classified balance sheet is Property, Plant, and Equipment (PP&E).
PP&E represents tangible assets that are used in the production or operation of a business and are expected to provide economic benefits over a long period. Examples of PP&E include land, buildings, machinery, vehicles, and equipment. These assets are essential for the company's operations and are not intended for sale in the ordinary course of business.
On a classified balance sheet, assets are categorized into current assets and long-term assets. Current assets are those that are expected to be converted into cash or used up within one year, while long-term assets are held for more than one year. Within the long-term assets section, PP&E is typically the first category reported. It is followed by other long-term assets such as intangible assets, investments, and other non-current assets.
By reporting PP&E as the first long-term asset category, the balance sheet provides a clear distinction between the company's current and long-term assets, giving stakeholders valuable insights into the composition and value of the company's long-term assets.
To learn more about asset
https://brainly.com/question/27972503
#SPJ11
Mognec, Inc. uses the absorption costing approach to cost-plus pricing to set prices for its products. Based on budgeted sales of 34,000 units next year, the unit product cost of a particular product is $61.80. The companys selling. general, and administrative expenses for this product are budgeted to be $809.200 in total for the yeat. The company has invested $400.000 in this product and expects a feturn on investment of 9%. The target selling price for this product based on the absorption costing approach would be closest to which of the following? Multiple Choice 56736 505.60 50660 $13003
The target selling price for the product based on absorption costing approach would be closest to $36,085.60.
Based on the information provided, the target selling price for the product based on the absorption costing approach can be calculated as follows:
Total product cost per unit = Unit product cost + Selling, general, and administrative expenses per unit
[tex]Total product cost per unit = $61.80 + ($809,200 / 34,000)\\\\Total product cost per unit = $61.80 + $23.80\\\\Total product cost per unit = $85.60[/tex]
Return on investment (ROI) = (Net profit / Investment) * 100
[tex]ROI = (Net profit / $400,000) * 100\\ROI = 9% (given)[/tex]
Let's assume the target selling price per unit is "X."
[tex]X - Total product cost per unit = (ROI / 100) * Investment\\X - $85.60 = (9 / 100) * $400,000\\X - $85.60 = $36,000\\X = $85.60 + $36,000\\X = $36,085.60[/tex]
Therefore, the target selling price for the product based on the absorption costing approach would be closest to $36,085.60.
Learn more about the selling price from the given link:
https://brainly.com/question/27796445
#SPJ11
goshen company applies overhead on the basis of 120% of direct labor cost. job no. 150 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. the total manufacturing costs for job no. 150 is
The total manufacturing costs for job no. 150 amount to $470,000.
To calculate the total manufacturing costs for job no. 150, we need to determine the direct labor cost first. Since Goshen Company applies overhead on the basis of 120% of direct labor cost, use this information to find the direct labor cost.
Let's assume the direct labor cost for job no. 150 is DL.
Manufacturing Overhead = 120% of Direct Labor Cost
$180,000 = 1.2 ×DL
Dividing both sides of the equation by 1.2,
DL = $180,000 / 1.2
DL = $150,000
Now that the direct labor cost, calculate the total manufacturing costs for job no. 150.
Total Manufacturing Costs = Direct Materials Cost + Direct Labor Cost + Manufacturing Overhead
Total Manufacturing Costs = $140,000 + $150,000 + $180,000
Total Manufacturing Costs = $470,000
To know more about manufacturing here
https://brainly.com/question/32717570
#SPJ4
Share the criteria of a good evaluation. Be sure to include: the elements and considerations for quality assessments, the concept of rigor including defining and commenting on the concepts of reliability and validity, a description of the four standards of evaluation that have been established by the American Evaluation Association.
Evaluation can be defined as the systematic process of collecting and analyzing data to make informed decisions. It is an important tool for assessing the effectiveness of programs, policies, and projects.
To ensure the quality of an evaluation, several elements and considerations should be taken into account:
1. Relevance: The evaluation should be directly related to the program, policy, or project being assessed and address the key questions that need to be answered.
2. Clarity: The purpose, objectives, and methods of data collection and analysis should be clearly defined in the evaluation.
3. Feasibility: The evaluation should be feasible in terms of the available resources and time required to complete it.
4. Credibility: The evaluation should be credible, supported by reliable evidence, and conducted by qualified evaluators.
Rigor is another important concept in evaluation, which encompasses the following components:
1. Validity: The evaluation should measure what it intends to measure, ensuring accuracy and appropriateness.
2. Reliability: The evaluation should produce consistent results over time and when conducted by different evaluators.
3. Objectivity: The evaluation should be unbiased and free from personal subjectivity or preferences.
4. Generalizability: The findings of the evaluation should be applicable to other settings or contexts.
The American Evaluation Association has established four standards of evaluation that evaluations should meet:
1. Utility: The evaluation should be useful and provide valuable insights to the intended users.
2. Feasibility: The evaluation should be feasible within the available resources and time constraints.
3. Propriety: The evaluation should be conducted ethically and in compliance with legal standards.
4. Accuracy: The evaluation should be accurate, based on sound evidence, reliable methods, and qualified evaluators.
Adhering to these standards helps ensure that evaluations are relevant, rigorous, and provide valuable information for decision-making.
Learn more about Evaluation
https://brainly.com/question/33104289
#SPJ11
what was the state of the canada economy during 2020? what was the state of the economy before the pandemic? collect time series data on nominal GDP, real GDP, per capita real GDP, unemployment rate ,bank rates, supply of money, bond yields, exchange rate(s), and any other important macroeconomic data?
The state of Canada's economy in 2020 was negatively impacted by the COVID-19 pandemic. The pandemic led to the government imposing restrictions on businesses and individuals to curb the spread of the virus.
This led to a contraction in the economy and a rise in unemployment. The government intervened by providing stimulus packages to support businesses and individuals. The economy before the pandemic was relatively stable, with a low unemployment rate and steady GDP growth.
The economy was driven by a thriving manufacturing industry, natural resources, and service sectors. Here is a summary of the state of Canada's economy before and during the pandemic based on the time series data on various macroeconomic indicators.
To know more about pandemic visit:
https://brainly.com/question/28941500
#SPJ11
Why do you think that some sports, such as baseball are more successful in bargaining against club owners as opposed to basketball?
Some sports, such as baseball, have been more successful in bargaining against club owners compared to basketball. Collective bargaining is a negotiation process that occurs between the players' union and team owners in sports.
It is essential to determine salaries, work conditions, and other benefits. Baseball players have been successful in this regard because of several reasons.There are a few reasons why baseball has a stronger bargaining power than basketball, which I will explain below:History of the sport: Baseball has a rich history dating back to the 19th century, and the players' union was established in 1954.
It is the first professional sport to form a union. In contrast, the NBA Players Association was not established until 1957. Baseball has had more time to develop its negotiation skills and strategies compared to basketball. The union has a strong sense of tradition and unity. Baseball is also considered to be America's pastime, which means that it holds a special place in the nation's culture.
Television revenue: Baseball generates more television revenue than basketball. Baseball games are shown on national television more frequently, and they have more playoff games, which generate significant revenue. In contrast, the NBA has fewer games that are shown on national television, and their playoffs are shorter.
To know more about negotiation visit:
https://brainly.com/question/33445141
#SPJ11
Give an introduction of the case with clear description of the characteristics of the local telecommunication retail market in Singapore. The introduction should also include some analysis of the demand, supply and elasticity concepts of telecommunication retail market before the entry of MVNOs.
The telecommunication retail market in Singapore has evolved over the years and has seen significant growth in terms of demand, supply and elasticity concepts. In the past, the market was dominated by three major players, SingTel, Starhub and M1.
However, with the entry of Mobile Virtual Network Operators (MVNOs) in recent years, there has been an increase in competition in the market. The demand for telecommunication services in Singapore has been on the rise over the years, driven by the increasing use of mobile devices and the internet.
Consumers are constantly seeking faster and more reliable networks and telecommunication services, which has resulted in increased competition in the market. With the entry of MVNOs, the demand for telecommunication services has become more elastic, as consumers have more options to choose from.
This has also resulted in a reduction in prices, as the major players try to compete with the MVNOs. Supply in the telecommunication retail market in Singapore is also influenced by factors such as regulations, infrastructure, and technology.
The three major players have invested heavily in infrastructure to support their networks, which has given them a competitive edge. However, with the entry of MVNOs, the supply in the market has become more elastic, as there are now more players in the market competing for the same resources and infrastructure.
To know more about telecommunication visit:
https://brainly.com/question/3364707
#SPJ11
almost no personal or household wealth in the united states is derived from housing equity.
The statement that "almost no personal or household wealth in the United States is derived from housing equity" is not accurate.
Housing equity, which refers to the difference between the market value of a property and the outstanding mortgage debt on that property, is a significant source of personal or household wealth for many individuals and families in the United States. Homeownership is often considered a crucial component of building wealth and financial stability
For most Americans, their primary residence represents a substantial portion of their net worth. As homeowners make mortgage payments over time, they build equity in their homes, which can be accessed through selling the property or borrowing against it. The accumulated housing equity can be used for various purposes, such as funding education, starting a business, or supplementing retirement savings.
Furthermore, housing appreciation can contribute to the growth of personal wealth. When the value of a home appreciates over time, homeowners can experience an increase in their overall net worth, driven by the equity gained from the appreciation.
While it is true that personal and household wealth can also come from other sources such as investments, savings, or business ownership, housing equity remains a significant component of wealth accumulation for many individuals and households in the United States.
To learn more about equity
https://brainly.com/question/11556132
#SPJ11
Frederick Consulting had just landed a white whale of a customer, Wilfrid Laurier University, after spending $52,000 in initial acquisition costs! Laurier is expected to generate $39,000 a year in margin, and Frederick Consulting expects this relationship to last for a very long time (decades). Additional costs to serve and retain Laurier are estimated to be $20,000 annually. The retention rate per period is 92%. The cost of capital for Frederick Consulting is 15%.
What is the customer lifetime value of Wilfrid Laurier University for Frederick Consulting?
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is $156,780.27.
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is calculated as follows:
Customer Lifetime Value (CLV) = Margin X (Retention Rate / (1 + Cost of Capital - Retention Rate))
According to the question, Frederick Consulting has the following data:
Acquisition Cost = $52,000
Margin = $39,000
Additional Costs = $20,000
Retention Rate = 92%
Cost of Capital = 15%
The customer lifetime value of Wilfrid Laurier University for Frederick Consulting is calculated as follows:
Customer Lifetime Value (CLV) = Margin X (Retention Rate / (1 + Cost of Capital - Retention Rate))
Customer Lifetime Value (CLV) = $39,000 X (92% / (1 + 15% - 92%))
Customer Lifetime Value (CLV) = $39,000 X (92% / 0.23)
Customer Lifetime Value (CLV) = $156,780.27
Learn more about The customer lifetime value: https://brainly.com/question/28539902
#SPJ11
At public TV station, QQTV, the Membership Department currently keeps donation information on database which runs on their local area network. QQTV would like to pursue more direct marketing and World Wide Web applications. At QQTV there are two kinds of donors: individual and corporate. Cash donations are made by both. Corporations also make "in-kind" donations, i.e., donations of non-cash items such as food, office supplies, advertising space, etc.
The following information is kept on in-kind donations: the item, quantity, and cash value. In-kind donations are not accepted from individuals. Individuals who donate a total of $50 or more a year are considered members and receive a monthly magazine and discount coupons from local merchants. Individual who donate less than $50 and corporations do not receive these items. Individuals and corporate members receive annual renewal notification one month in advance of their membership expiration.
Additional donations and new members are sought during quarterly, week long on-air fund drives. Some corporations provide "matching gift" programs where employee contributions to QQTV are matched by the corporation. Finally, QQTV seeks donations through estate planning and bequests.
The computing environment at QQTV consists of a local area network of PCs running the Microsoft Windows XP operating system. Users of the system will be the full-time staff of QQTV and volunteers. The typical full-time staff member has a background in broadcast communications and basic facility with the Microsoft Office Suite and Internet applications. During pledge drives, volunteers will be performing data entry tasks. These volunteers possess a wide range of computer skills and have all chosen "data entry" as their task for the fund drive.
The objective of this assignment is to: Develop a business plan for introducing an integrated IS (Internet/Electronic commerce) strategy to QQTV
You should develop an integrated IS (Internet/E-commerce) strategy for a first phase of Internet business presence at QQTV.
This will include explaining what Internet capabilities should be used, technical requirements (hardware, software, and other equipment) and how this new technology would be integrated into the business.
Please find the answer on Chegg that has 3 up votes for this question, use that answer to answer the following questions:
1. What are the technical requirements (hardware, software, and other equipment) to support the integrated IS strategy?
2. What resources (personnel, equipment, etc.) will be needed to implement your strategy?
3. Purpose of the web site you developed
1. Technical requirements (hardware, software, and other equipment) for an integrated IS strategy at QQTV are as follows: Hardware: Servers, Routers, Computers, Data Storage, Networking equipment, etc. will be required for an integrated IS strategy.
These are required to provide the infrastructure for the internet and electronic commerce. Software: Databases, Security software, and appropriate application software are required to manage the organization’s e-commerce services. With the help of these software services, the management of donation data and member records, as well as data input from on-air fund drives and volunteers, is simplified.
Other Equipment: Appropriate scanning and printing equipment will be required for volunteer data entry workstations in support of pledge drives.2. For implementing an integrated IS strategy at QQTV, following resources are required:Personnel:
Professionals from the IT sector will be required to manage, design, and maintain an electronic commerce web site. Additionally, appropriate IT personnel should be hired for managing the networks and database servers. Equipment: The procurement of software, hardware, and networking equipment will be required to set up the infrastructure required to facilitate internet and electronic commerce services.
A separate workstation with scanning and printing equipment is also required to manage data input from on-air fund drives and volunteers.3. The primary purpose of the website developed is to facilitate electronic commerce and enable better data management. Donor data and member records can be maintained more efficiently through this online platform. It will also serve as a virtual hub for fund drives.will be facilitated through the platform.
To know more about Storage visit:
https://brainly.com/question/86807
#SPJ11
In the economy described in the TREES QUESTION 1, suppose that in a given year $100 worth of trees are produced. These trees are sold to paper producers who in turn produce $130 worth of paper. Half of that is sold to consumers. The rest is sold to the producers of books who produce $112 worth of books and sell them to the consumers. The GDP of this economy is $ QUESTION 5 (TREES QUESTION 3) In the economy described in TREES QUESTION 2 (this may be below in your PreHW1), the value added of trees producers is A. $60 B. $20 C. $40 D. $100
The GDP of the economy is [tex]$221[/tex].In the given economy, [tex]$100[/tex] worth of trees are produced. Therefore, the value added by the trees producers is [tex]$100[/tex].The correct option is D. [tex]$100[/tex].
Half of this paper is sold to consumers, and the remaining is sold to book producers, who then produce [tex]$112[/tex] worth of books, which is then sold to the consumers.To find: The GDP of the economy.Solution:Gross Domestic Product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific period.
This value is added to the economy by the paper producers and the book producers.
GDP of the economy = [tex]$100[/tex] + [tex]$65[/tex]+ [tex]$56[/tex]
=[tex]$221[/tex]
Therefore, the GDP of the economy is [tex]$221[/tex].In the given economy, [tex]$100[/tex] worth of trees are produced. This value is added to the economy by the trees producers, which is equal to the value of the trees produced.
Hence, only the value-added to the economy by the book producers is considered.
Value added by book producers =
Value of books produced - Value of paper purchased from paper producers
= [tex]$112[/tex] - [tex]$65[/tex]
= [tex]$47[/tex]
The value added by trees producers is equal to the value of trees produced, which is [tex]$100[/tex].
To know more about economy visit:
https://brainly.com/question/18461883
#SPJ11
Essay Question: should project managers only pay attention to
managing negative risk on their projects?
Project managers should not only pay attention to managing negative risks on their projects as they may fail to benefit from positive risks. Instead, they should focus on risk management as a whole, which includes both negative and positive risks. This will enable them to identify and exploit positive risks while mitigating negative risks.
1. Project managers should not only focus on managing negative risks on their projects as it is important to also benefit from positive risks. In addition, ignoring positive risks could lead to missed opportunities for the project.
2. Therefore, project managers should focus on risk management as a whole. This involves identifying and assessing both positive and negative risks and implementing strategies to mitigate the negative risks while exploiting the positive risks.
3. By adopting a comprehensive risk management approach, project managers can achieve their project goals while minimizing the impact of negative risks and maximizing the benefits of positive risks. This can result in increased project success and stakeholder satisfaction.
Project managers have a responsibility to manage risks on their projects to ensure successful project outcomes. However, risk management should not only be focused on negative risks but should also consider positive risks. Ignoring positive risks could lead to missed opportunities for the project.
Thus, project managers need to adopt a comprehensive risk management approach that considers both negative and positive risks. By identifying and assessing both negative and positive risks, project managers can implement strategies to mitigate negative risks while exploiting positive risks.
This will enable them to achieve project goals while minimizing the impact of negative risks and maximizing the benefits of positive risks. Overall, a comprehensive approach to risk management can result in increased project success and stakeholder satisfaction.
To learn more about risk management
https://brainly.com/question/31923615
#SPJ11
Ellis Don Construction company have obtained a large construction project from the Government of Ethiopia in Africa. As part of the Tender Process, the project spans 4 years at a maximum ceiling cost of USD 2 Billion Dollars. However, the target cost for this project has been fixed at USD 1.5 Million Dollars. Due to the risky nature of this project owing to the volatile economic and political conditions prevalent in Ethipia, both parties have come to a decision on the method to calculate the incentive, based on the contractual performance of the contractor and the level of applicable proft. This proft / incentive adjustment method is based on a 60/ 40 ratio. After contract performance evaluation, if the final cost of the project is less than the target cost, then the contractor will be paid, the final cost, the proft and the incentive which is calculated at 60% of the total profit. Conversely, after contract performance evaluation, if the final cost of the project is more that the target cost, then the contractor will be paid, the final cost, the proft and the incentive which is calculated at 40% of the total profit, in which case, the incentive to the contractor decreases a. This contract is an FPIF contract, since the scope of work is fixed b. This contract is an FPIF contract since FPIF contracts shares the risk between buyer and contractor c. This contract is an FPEPA contract due to the volatility of the economic and political conditions in Ethiopia d. This contract is a CS contract, because the incentives are shared Jansen Brothers Construction-ABC IT Solutions Ltd has just received a large construction project involving the Design, Construction, Testing and Commissioning of a Hospital Infrastructure. However, since this project involves a large Information Technology Implementation, Jansen Brothers Construction had formed a partnership / joint venture with ABC IT Solutions Ltd, by signing a contract with ABC. This has enabled the risk between both Jansen Brothers Construction and ABC IT Solutions to a. Transfer the risk, since this is a contract between Jansen Brothers Construction and ABC IT Solutions Ltd, and does not depend on the Joint Venture Agreement b. Share the risk, since even though the contractis a risk transference tool, nevertheless, both parties have entered into a Partnership / Joint Venture Agreement c. Mitigate the risk, since Jansen Brothers has entered a subcontract with ABC IT Solutions d. Transfer the risk from Jansen Brothers Construction to ABC IT Solutions Ltd, since contract is a form of risk transference tool
The correct statement is: a. Transfer the risk, since this is a contract between Jansen Brothers Construction and ABC IT Solutions Ltd, and does not depend on the Joint Venture Agreement.
How to explain the informationThis means that the risk has been transferred from Jansen Brothers Construction to ABC IT Solutions Ltd through the terms and conditions outlined in the contract. The contract specifies the responsibilities, obligations, and liabilities of each party, including the risks they assume.
The joint venture agreement, on the other hand, refers to the broader agreement between Jansen Brothers Construction and ABC IT Solutions Ltd regarding the collaboration and partnership aspects of the project. While the joint venture agreement may include provisions related to risk sharing or allocation, the primary tool for risk transfer in this case is the contract between the two parties.
Learn more about contract on
https://brainly.com/question/5746834
#SPJ4
When investors tend to increase their investments in debt securities into those on the long end of the spectrum rather than those with short-term maturities, it generally leads to
A) long-term yields that greatly exceed short-term yields.
B) a positive yield curve.
C) an inverted yield curve.
D)a flat yield curve.
When investors tend to increase their investments in debt securities into those on the long end of the spectrum rather than those with short-term maturities, it generally leads to a positive yield curve. The correct option is B.
A positive yield curve results from investors placing more of their money into debt securities with long maturities than short maturities. In a scenario with a positive yield curve, long-term yields are greater than short-term rates.
This is a reflection of the market's expectation that interest rates will rise in the future and serves as compensation for the higher risk involved with longer-term investments.
Thus, the ideal selection is option B.
Learn more about Yield Curve Investment here:
https://brainly.com/question/34809055
#SPJ12
A customer buys 1,000 shares of XYZ at $47. Several months later, the stock is at $56. The customer, concerned about a possible pullback and wanting to best protect the unrealized gain, should:
A) sell 10 XYZ 55 puts.
B) sell 10 XYZ 60 calls.
C) buy 10 XYZ 55 puts.
D) buy 10 XYZ 60 calls.
C) Buy 10 XYZ 55 puts.A customer buys 1,000 shares of XYZ at $47. Several months later, the stock is at $56.
Buying 10 XYZ 55 puts would be the best choice to protect the unrealized gain. By purchasing put options, the customer gains the right to sell the stock at the strike price (in this case, $55) even if the stock price drops. If the stock experiences a pullback, the customer can exercise the put options and sell the shares at the higher strike price, limiting potential losses. This strategy acts as a form of insurance against downward price movements and helps protect the unrealized gain in case of adverse market conditions.
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
Talk about (Revised) IAS No. 1: Presentation of
Financial Statements in term of assets
classification.
(Revised) Guidelines for the presentation and disclosure of financial statements are outlined in IAS No. 1: Presentation of Financial Statements.
The updated standard offers a structure for the reporting of assets in a balance sheet in terms of asset classification. According to whether their estimated realisation would occur within the regular operating cycle or 12 months from the reporting date, it requires companies to categorise assets as either current or non-current. Non-current assets are those that are planned for usage outside of the operating cycle while current assets are those that are anticipated to be turned into cash or consumed inside the operating cycle. This classification aids readers of financial accounts in comprehending the assets of an entity's liquidity and long-term survival.
learn more about financial here:
https://brainly.com/question/32292990
#SPJ11
A loan of $15,000 is to be repaid in 4 equal payments (over 4 years) and the interest rate is 10% per year. Determine the principal repayment amount at end of year 2 ? a. $3,910.79 b. $3,232.06 c. $3,555.27 d. $3,0,070 e. $2,10,562
The principal repayment amount at the end of year 2 is $3,910.79. Here's how to arrive at the solution: The principal amount borrowed is $15,000.The interest rate is 10% per year.
Therefore, the interest rate for each of the four years will be 10/4 = 2.5%.We have to find the principal repayment amount at the end of year 2.
At the end of year 1, the outstanding balance will be
[tex]$15,000 + $15,000 × 2.5% = $15,000 + $375 = $15,375.[/tex]
At the end of year 2, the outstanding balance will be:
[tex]$15,375 + $15,375 × 2.5% = $15,375 + $384.38 = $15,759.38[/tex]
This means that in the first two years, the borrower paid back
[tex]$15,759.38 - $15,000 = $759.38[/tex] in total.
At the end of year 2, the borrower still has 4 - 2 = 2 years left to pay back the loan. Therefore, the remaining loan balance after the second year will be paid back in 2 equal payments over the third and fourth years. Using the present value formula, we can find out the size of each of these two payments:
PV = FV / (1 + r)n where PV is the present value of the payment, FV is the future value of the payment, r is the interest rate per period, and n is the number of periods.
Let's use PV1 to represent the present value of the payment to be made at the end of year
To know more about repayment visit:
https://brainly.com/question/31483682
#SPJ11
for tina, the opportunity cost of 1 cup of coffee is 5 cups of tea. for gabe, the opportunity cost of 1 cup of coffee is 2 cups of tea.
The correct statements about terms of trade are:
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea, then Gloria will be neither better off nor worse off.
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea, then both will be better off.
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 4 tea, then both will be better off.
The concept of opportunity cost and comparative advantage plays a key role in understanding terms of trade. Opportunity cost refers to the value of the next best alternative given up when making a choice. Comparative advantage, on the other hand, is the ability to produce a good or service at a lower opportunity cost than others.
In this scenario, Ted's opportunity cost of 1 cup of coffee is 4 cups of tea, while Gloria's opportunity cost of 1 cup of coffee is 2 cups of tea. This means that Gloria has a comparative advantage in producing coffee since her opportunity cost of producing coffee is lower than Ted's.
Now let's analyze the given statements:
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea, then Gloria will be neither better off nor worse off.
Since Gloria's opportunity cost of 1 cup of coffee is 2 cups of tea, she gains 2 cups of tea through trade, which is exactly equal to her opportunity cost. Therefore, she remains neither better off nor worse off.
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea, then both will be better off.
If Ted trades 1 cup of coffee for 3 cups of tea, he gains 3 cups of tea while his opportunity cost is 4 cups of tea. This trade allows Ted to consume more tea than his opportunity cost, making him better off. Similarly, Gloria gains 1 cup of coffee, which has an opportunity cost of 2 cups of tea for her. Thus, both Ted and Gloria are better off through trade.
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 4 tea, then both will be better off.
Explanation: Similar to the previous explanation, if Ted trades 1 cup of coffee for 4 cups of tea, he gains 4 cups of tea while his opportunity cost is 4 cups of tea. This trade allows Ted to consume exactly his opportunity cost, resulting in no change in his well-being. However, Gloria gains 2 cups of tea, which have an opportunity cost of 1 cup of coffee for her. Therefore, Gloria is better off through trade.
Based on the given information, statement d) and e) are not true. In statement d), the trade would not take place because Ted would be worse off, and in statement e), the trade would not take place because Gloria would be worse off.
To know more about Opportunity Cost here
https://brainly.com/question/32971162
#SPJ4
Complete Question
Forted, the opportunity cost of 1 cup of coffee is 4 cups of tea. For Gloria, the opportunity cost of 1 cup of coffee is 2 cups of tea. Given the information above, select all statements about terms of trade that are TRUE: Hint: there is more than one TRUE statement Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit.
a) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 coffee for 2 tea then Gloria will be neither better off or worse off
b) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade coffee for 3 tea then both will be better off
с) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade : coffee for 4 tea then both will be better off
d) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade i coffee for 6 tea then Gloria would be better off but Ted would be worse off so the trade would not take place
e) If Ted and Gloria each specialize in producing the good in which they have a comparative advantage and trade 1 miles for tea then Ted would be better off but Gloria would be worse off so the trade would not take place.
Topic 8 :Market oriented Strategic Planning Page 1 1. The managerial process of developing and maintaining a viable fit between an organisation's objectives, skills, and resources and its market opportunities is called: a. market-oriented strategic planning b. portfolio analysis c. human resource planning d. establishing strategic business units e. market research 2. At which level in the company should market-oriented strategic planning begin? a. strategic business unit b. sales/marketing department c. corporate level d. product level e. functional level 3. Which of the following is an example of one of the elements a company would use to shape its mission? a. the form and number of the company's strategic business units b. the organisational vision c. its current operational processes d. the geographical location of its facilities e. the diversity of its employees 4. Which of the following is an example of a good mission statement? a. GCC will provide superior products at a fair price to our customers while supporting our local community and providing our employees and stockholders with the opportunity to achieve their personal objectives. b. ABC Corporation will produce the highest quality products with the best service and the most affordable prices in the industry. c. Rosita's will provide the world's best pizza to its customers. d. Operating ethically, XYZ Corporation will dominate its industry with low cost products. We will seek to operate in only a limited number of industries, but in those industries will undercut the prices of and provide better service than our competitors. e. All of the above are examples of good mission statements. 5. Which of the following is a market-oriented definition of a market? a. We are in the communications business. b. We operate theme parks. c. We make casings for sausages and wieners. d. We sell women's clothing. e. We raise chickens.
1. The correct answer is a. market-oriented strategic planning. Market-oriented strategic planning is the process of aligning an organization's objectives, skills, and resources with market opportunities. It involves analyzing the market, understanding customer needs and preferences, and developing strategies to meet those needs effectively.
2. The correct answer is c. corporate level. Market-oriented strategic planning should begin at the corporate level, where top management sets the overall direction and goals for the entire organization. It then cascades down to lower levels, such as strategic business units and functional areas.
3. The correct answer is b. the organizational vision. A company shapes its mission by considering various elements, and one of them is the organizational vision. The vision outlines the desired future state of the company and helps guide decision-making and goal-setting.
4. The correct answer is a. GCC will provide superior products at a fair price to our customers while supporting our local community and providing our employees and stockholders with the opportunity to achieve their personal objectives. A good mission statement should clearly define the company's purpose, target audience, and values. It should be specific, realistic, and aligned with the company's goals and values.
5. The correct answer is c. We make casings for sausages and wieners. A market-oriented definition of a market focuses on the specific products or services that a company offers. It identifies the target market and highlights the company's specialization or expertise in that particular area.
To know more about stockholders visit:
https://brainly.com/question/33505476
#SPJ11
5.19 Computing and Interpreting Bankruptcy Prediction Ratios. Exhibit 5.21 presents selected financial data for Best Buy Co., Inc., and Circuit City Stores, Inc., for fiscal 2008 and 2007. Best Buy and Circuit City operate as specialty retailers offering a wide range of consumer electronics, service contracts, product repairs, and home installation. Competition from Walmart, Costco, and Internet retailers put downward pressure on prices and margins. In November 2008, Circuit City filed Chapter 7 bankruptcy. In the media, Circuit City's bankruptcy was largely blamed on its poor treatment of employees. In early 2007, Circuit City laid off 3,400 high-paid salespersons, or approximately 8% of its workforce, which left inexperienced, low-paid workers in charge of customer service. Customer service quality plummeted, which was especially harmful for a retail business providing expensive electronic items, warranty products, and installation services. REQUIRED a. Compute Altman's Z-score for Best Buy and Circuit City for 2007 and 2008. b. How did the bankruptcy risk of Best Buy change between 2007 and 2008 ? Explain. c. How did the bankruptcy risk of Circuit City change between 2007 and 2008? Explain. d. As noted, Circuit City filed Chapter 7 bankruptcy in November 2008 . Using the analysis from Requirements b and c, would you have predicted Circuit City or Best Buy to file bankruptcy in 2008? Explain. tnded rebruary L8, 20U8.
The bankruptcy risk of Best Buy may have changed between 2007 and 2008, but without the specific financial data, the extent of the change cannot be determined.
Unfortunately, the requested financial data and Altman's Z-scores for Best Buy and Circuit City in 2007 and 2008 are not provided. Altman's Z-score is a widely used bankruptcy prediction model that assesses a company's financial health based on various ratios. It calculates a score that indicates the probability of bankruptcy within a certain period. The ratios typically considered in the model include profitability, leverage, liquidity, solvency, and activity. By comparing the Z-scores of Best Buy and Circuit City for 2007 and 2008, we can evaluate the changes in their bankruptcy risks. However, without the necessary financial data, it is not possible to perform the calculations or make accurate predictions about bankruptcy filings.
Learn more about bankruptcy risk here:
https://brainly.com/question/33010642
#SPJ11
Suppose the interest rate is 9.4% APR with monthly compounding. What is the present value of an annuity that pays $89 every 6 months for 4 years?
A) The 6 month effective interest rate is
B) The present value is
A) The 6 month effective interest rate is 0.047%n = 0.094/12B) The present value is $ 1163.60The present value of the given annuity that pays $89 every 6 months for 4 years, at a monthly interest rate of 9.4%/12 = 0.783% is computed as shown below:
Use the formula for the present value of an annuity to calculate the present value of the given annuity.
\[PV=\frac{C[1-\frac{1}{(1+i)^{n}}]}{i}\]
Where PV is the present value of the annuity, C is the payment made, i is the interest rate per compounding period, and n is the total number of payments to be made.The amount to be calculated can be split into 8 payments made every 6 months.
Therefore, n = 8, C = $89.The interest rate i per 6 months is calculated as follows: Annual interest rate = 9.4%, Compounding frequency = 12 per year, therefore compounding period, m = 12/2 = 6.Using the formula:\[i = (1 + r/m)^{m}-1\]where, r is the annual interest rate, m is the number of compounding periods per year.\[i = (1 + 0.094/6)^{6}-1 = 0.047\]Therefore, i = 0.047 or 4.7% per 6 months. Substituting values into the formula,\[PV = \frac{89[1 - \frac{1}{(1+0.047)^{8}}]}{0.047}\]\[PV = \frac{89[1 - 0.66398]}{0.047}\]\[PV = 1163.60\].Hence, the present value of the given annuity that pays $89 every 6 months for 4 years at 9.4% APR with monthly compounding is $1163.60.
To know more about effective interest rate visit:
https://brainly.com/question/29514432
#SPJ11
expert card has an apr of 20.4% compounded monthly. passport has a daily periodic interest rate of 0.0425%. explore has a monthly periodic interest rate of 1.55%. which card has the higher apr? (2 points) expert card passport explore expert card and explore are equally high
The APR (Annual Percentage Rate) is used to compare the cost of borrowing on different credit cards. It represents the annualized interest rate charged on the outstanding balance of the credit card.
To determine which card has the higher APR, let's compare the rates: Expert card: APR of 20.4% compounded monthly. Passport card: Daily periodic interest rate of 0.0425%. Explore card: Monthly periodic interest rate of 1.55%. To compare these rates, we need to convert them to the same compounding period. The Expert card has a monthly compounding period, so its APR is already in the correct format.
To convert the Passport card's daily periodic interest rate to a monthly periodic interest rate, we multiply it by the number of days in a month (approximately 30): 0.0425% * 30 = 1.275%. The Explore card's monthly periodic interest rate is already in the correct format. Now, let's compare the APRs Comparing the APRs, we can see that the Expert card has the highest APR of 20.4%. The Passport card has an APR of 15.3%, and the Explore card has an APR of 18.6%. Therefore, the Expert card has the highest APR among the three options provided.
To know more about Annual Percentage Rate visit :
https://brainly.com/question/28347040
#SPJ11
