This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Your company is able to arrange financing at either a rate of 12.75 annually, or at a rate of 12 ... (Read 48 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
on: Jul 10, 2018
Your company is able to arrange financing at either a rate of 12.75 annually, or at a rate of 12
  compounded monthly. Assuming financing is needed for one year, which rate is the best?
 
  A) 12.75 annually, because the annual percentage yield for 12 compounded monthly is
  greater than 12.75.
  B) 12.75 annually, because even though the annual percentage yield is higher, interest if paid
  only once per year at year end.
  C) 12 compounded monthly, because the annual percentage yield is 12.68.
  D) Both rates are effectively the same, so your company should be indifferent between the two.

Question 2

If 100 is placed in an account that earns a nominal 4, compounded quarterly, what will it be worth in 5 years?
 
  A) 122.02
  B) 105.10
  C) 135.41
  D) 120.90
  E) 117.48
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ashely1112

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly


dollx

  • Member
  • Posts: 558
Reply 2 on: Jul 10, 2018
Wow, this really help

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Primary production is positively correlated with the evapotranspiration rate. Primary production is positively correlated with the evapotranspiration rate.
The Rate Law The Rate Law
Christian Gladu, The Bungalow Company, The Birch, North Town Woods, Bainbridge Christian Gladu, The Bungalow Company, The Birch, North Town Woods, Bainbridge
How would you rate your overall health?” The percent of adults answering “excellent” or ... How would you rate your overall health?” The percent of adults answering “excellent” or ...
Target Heart Rate Target Heart Rate
For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ... For each function f(x) = 6x^2 - 4, estimate the instantaneous rate of change for the given ...
Video: Sex-Linked Traits! How are eye colors inherited in fruit flies?

For a complete list of videos, visit our video library