Answer:
heat map
Explanation:
The map that Simone will use will be a Heat map, which is a graph that uses colors for the understanding of the information, that is, according to the color suggested by the map, it is possible to identify patterns that are desired, as in the case of the question above, where each variation sells best and in which regions.
In the heat map, each color corresponds to a value, and this tool is widely used in digital marketing, for understanding customer behaviors on websites, for example.
Olaf lives in the state of Minnesota. In 2019, a tornado hit the area and damaged his home and automobile Applicable information is as follows:
Item Adjusted Basis FMV before FMV after Insurance Proceeds
Home $350,000 60,000 $500,000 40,000
Auto $100,000 10,000 $280,000 20,000
Because of the extensive damage caused by the tornado, the President designated the area a Federal disaster area. Olaf and his wife, Anna, always file a joint return. Their 2019 tax return shows AGI of $180,000 and taxable income of $145,000. In 2020, their return shows AGI of $300,000 and taxable income (exclusive of the casualty loss deduction) of $225,000. Assume the taxpayers are in the 22% tax bracket in 2019 and the 24% tax bracket in 2020.
Required:
Determine the amount of Olaf and Anna's loss and the year in which they should take the loss.
At Blossom Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $148000. (2) A strike by the employees of a supplier resulted in a loss of $124000. (3) The inventory at December 31, 2018 was overstated by $199000. The effect of these events and transactions on 2020 income from continuing operations net of tax would be
Answer:
$99,200
Explanation:
Calculation to determine The effect of these events and transactions on 2020 income from continuing operations net of tax would be
Using this formula
Effect income from continuing operations net of tax=Strike loss amount-(Strike loss amount*Tax rate )
Let plug in the formula
Effect income from continuing operations net of tax=$124,000 - ($124,000 × .20)
Effect income from continuing operations net of tax=$124,000-$24,800
Effect income from continuing operations net of tax=$99,200
Therefore The effect of these events and transactions on 2020 income from continuing operations net of tax would be $99,200
Pension data for Coda Corporation included the following for the current calendar year: Service cost $ 112,000 PBO, January 1 810,000 Plan assets, January 1 860,000 Amortization of prior service cost 6,600 Amortization of net loss 2,600 Discount rate, 8% Expected return on plan assets, 10% Actual return on plan assets, 12% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Pension expense $100,000
Explanation:
The computation of the pension expense for the year is shown below:
Service cost $112,000
Interest cost $64,800 ($810,000 × 8%)
Amortization of prior service cost $6,600
Amortization of net loss $2,600
Less: Expected return on plan assets -$86,000 ($860,000 × 10%)
Pension expense $100,000
Computing Retained Earnings and Preparing a Classified Balance SheetThe following data, in no particular order, are from the accounts of Brown Corp. as of December 31, 2020, its annual year-end. All amounts are accurate, all accounts have normal balances, and total debits equal total credits.Accounts payable (trade) $28,000 Deferred revenue $7,000Debt retirement fund (long-term) 14,000 Cash dividends payable 17,500Accounts receivable 59,500 Inventory 105,000Income taxes payable 14,000 Land held for future business site 63,000Short-term investments, marketable securities(cost which approximates fair value) 35,000 Equipment and furniture 245,000Bonds payable (long-term) 178,500 Net income for 2020 122,500Accumulated depreciation, equipment and furniture 21,000 Dividends (cash) declared (a debit) 10,500Common stock, par $1 (300,000 shares authorized) 245,000 Prepaid expenses (short-term) 3,500Cash 70,000 Patent 14,000Retained earnings, December 31, 2019 59,500 Prepaid rent (long-term) 7,000Allowance for doubtful accounts 7,000 Investment in capital stock of Zinc ProductsCorporation (long-term) 91,000Premium on common stock 17,500Requireda. Compute the year-end balance of retained earnings. b. Prepare a classified balance sheet as of December 31, 2020.Do not use negative signs with any of your answers.
Answer:
a. Retained Earnings:
Retained earnings, December 31, 2019 $59,500
Net income for 2020 122,500
Dividends (cash) declared (a debit) (10,500)
Retained earnings, December 31, 2020 $171,500
b. Classified Balance Sheet as of December 31, 2020
Assets
Current Assets:
Cash $70,000
Accounts receivable 59,500
Allowance for doubtful accounts 7,000 52,500
Inventory 105,000
Prepaid expenses (short-term) 3,500
Short-term investments 35,000 $266,000
Long-term Investments:
Investment (long-term) 91,000
Prepaid rent (long-term) 7,000
Debt retirement fund (long-term) 14,000 $112,000
Long-term Assets:
Land held for future business site 63,000
Equipment and furniture 245,000
Accumulated depreciation,
equipment and furniture 21,000 224,000
Patent 14,000 $301,000
Total assets $679,000
Liabilities and Equities
Current Liabilities:
Accounts payable (trade) $28,000
Deferred revenue 7,000
Income taxes payable 14,000
Cash dividends payable 17,500 $66,500
Long-term Liabilities:
Bonds payable (long-term) $178,500
Total liabilities $245,000
Equities:
Common stock, par $1
(300,000 shares authorized) $245,000
Premium on common stock 17,500
Retained earnings, December 31, 2020 171,500 $434,000
Total liabilities and equity $679,000
Explanation:
a) Data and Calculations:
Accounts payable (trade) $28,000
Deferred revenue $7,000
Cash dividends payable 17,500
Income taxes payable 14,000
Bonds payable (long-term) 178,500
Common stock, par $1
(300,000 shares authorized) 245,000
Premium on common stock 17,500
Retained earnings, December 31, 2020 $171,500
Cash 70,000
Accounts receivable 59,500
Allowance for doubtful accounts 7,000
Inventory 105,000
Prepaid expenses (short-term) 3,500
Short-term investments 35,000
Investment (long-term) 91,000
Prepaid rent (long-term) 7,000
Debt retirement fund (long-term) 14,000
Land held for future business site 63,000
Equipment and furniture 245,000
Accumulated depreciation,
equipment and furniture 21,000
Patent 14,000
A company has bonds on the market with 13 years to maturity, a YTM of 7.6 percent, and a current price of $1,000. The bonds make semiannual payments and have a face value of $1,000. What is the dollar value of each coupon
Answer:
$38.00
Explanation:
The dollar value of each coupon of each coupon is also known as the PMT of the Bond and this is made twice in a year for this question.
The Bond elements can now be established as :
N = 13 x 2 = 26
YTM = 7.6 %
PV = ($1,000)
FV = $1,000
P/YR = 2
PMT = ?
Using a Financial calculator the PMT is $38.00
Thus, the dollar value of each coupon is $38.00
Suppose the economy of the large country of Hendrix is currently experiencing economic growth and has a trade deficit. Consider the possible effects of this economic growth on the trade balance and place them in the appropriate category. 1. Likely to occur during economic growth and increase the trade deficit 2. Likely to occur during economic growth and decrease the trade deficit 3. Not likely to occur during economic growth imports increase a. imports decrease b. government borrowing increases c. private savings decrease d. private savings increase e. government borrowing decreases
Answer:
1. Likely to occur during economic growth and increase the trade deficit - imports increase
Economic growth increases the living standard of people because it raises the average income. People often use this income to buy goods from abroad in case demand is not met by domestic firms.
2. Likely to occur during economic growth and decrease the trade deficit - d. private savings increase
Private savings increase during economic growth because people enjoy a higher disposable income. A share of this private savings are invested abroad, where foreigners use this capital to import goods from the original country, decreasing the trade deficit.
3. Not likely to occur during economic growth - c. private savings decrease
Private savings usually increase during times of economic growth for the reasons explained above.
If different types of parol evidence contradict each other, this is the hierarchy of what prevails:
a. Course of performance, course of dealing, usage of trade Usage of trade.
b. Course of dealing, course of performance.
c. Course of dealing, usage of trade, course of performance
d. Course of performance, usage of trading, course of dealing
Answer:
a. Course of performance, course of dealing, usage of trade.
Explanation:
Parol evidence are oral agreements not in written format. These are agreed orally and the therefore its enforceability is sometimes difficult it either party refuses to accept the oral agreements as there is no physical evidence supporting the statements agreed.
Samuelson Electronics has a required payback period of 4 years for all of its projects. Currently, the firm is analyzing two independent projects. Project A has an expected payback period of 3.1 years and a net present value of $42,000. Project B has an expected payback period of 4.1 years with a net present value of $2,640. Which project(s) should be accepted based on the payback decision rule?
A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:
Answer:
21yhhyhhjjkko
Explanation:
iuuiuuuuyuiiiiiiiiok
At the beginning of 2019, the Healthy Life Food Company purchased equipment for $42 million to be used in the manufacture of a new line of gourmet frozen foods. The equipment was estimated to have a 10-year service life and no residual value. The straight-line depreciation method was used to measure depreciation for 2019 and 2020. Late in 2021, it became apparent that sales of the new frozen food line were significantly below expectations. The company decided to continue production for two more years (2022 and 2023) and then discontinue the line. At that time, the equipment will be sold for minimal scrap values. The controller, Heather Meyer, was asked by Harvey Dent, the company's chief executive officer (CEO), to determine the appropriate treatment of the change in service life of the equipment. Heather determined that there has been an impairment of value requiring an immediate write-down of the equipment of $12,900,000. The remaining book value would then be depreciated over the equipment's revised service life. The CEO does not like Heather's conclusion because of the effect it would have on 2016 income. "Looks like a simple revision in service life from 10 years to 5 years to me," Dent concluded. "Let's go with it that way, Heather."
Required:
What is the difference in before-tax income between the CEO's and Heather's treatment of the situation? Discuss Heather Meyer's ethical dilemma.
How can a company take advantage of viral diffusion in a rapidly growing market?
a. They can give opinion leaders free products to use.
b. They can identify and court opinion leaders in a particular market.
c. All of these are ways for companies to take advantage of viral diffusion in a rapidly growing market.
d. They can encourage experts in the field to use the product first.
e. They can create a partnership with opinion leaders to help further develop the technology.
Answer:
The answer is D
Explanation:
I think so
The answer is d. They can encourage experts in the field to use the product first is the advantage of viral diffusion in a rapidly growing market
Which marketing tactic qualifies as product proliferation in a developed market?
Product proliferation is a strategy used by businesses to increase the range of products they provide in a market or submarket in order to saturate the market and reduce the amount of unmet demand (Mainkar, Lubatkin, & Schulze, 2006).
Product proliferation, pricing games, and preserving surplus capacity are the key strategies used by businesses in established markets to thwart entrants.
a dominator strategy for market share. Market share dominance is not one of Porter's general competition strategies. The best-cost provider, low-cost provider, differentiation, and concentrated low-cost are the four main general categories of competitive strategy.
To learn more about Product proliferation refer to:
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Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal risky portfolio has an expected return of 0.2 and standard deviation of 0.2. The T-bill rate is 0.05. If your risk-return preferences are best described by the utility function in this class, with a risk-aversion coefficient of 4.6. What is the expected return on your optimal complete portfolio
Answer:
d
Explanation:
On December 1, 2021, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2022. Keenan purchased a foreign currency put option with a strike price of $0.97 (U.S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:
Date Spot Rate Option Premium
1-Dec-18 $0.97 $0.05
31-Dec-18 $0.95 $0.04
1-Feb-19 $0.94 $0.03
Required:
Compute the fair value of the foreign currency option at February 1.
Answer:
Keenan Company (U.S.) and Velez Company (Canada)
The fair value of the foreign currency option at February 1 = $4,500.
Explanation:
a) Data and Calculations:
Value of merchandise sold to Velez Company = CAD 150,000
Collection date of the receivable = February 1, 2022
Strike price of foreign currency put option purchased by Keenan = US$0.97
Relevant exchange rates follow:
Date Spot Rate Option Premium
1-Dec-21 $0.97 $0.05
31-Dec-21 $0.95 $0.04
1-Feb-22 $0.94 $0.03
The fair value of the option is based on the the change that has occurred in the Spot Rates from December 1, 2021 to February = $0.03 ($0.97 - $0.94)
Therefore, the fair value = 150,000 * $0.03 = $4,500
A monopolistic competitor wishing to maximize profit will select a quantity where marginal cost equals demand. marginal revenue equals marginal cost. marginal cost equals average cost. marginal revenue equals average cost. If a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should existing levels of production in order to
Answer:
marginal revenue equals marginal cost.expand; increase profitabilityExplanation:
A monopoly would seek to maximize its profit at a point where marginal revenue will equal marginal cost because at this point, resources are being fully and efficiently utilized. If more cost was incurred to produce then marginal cost would exceed marginal revenue and lead to losses.
The same goes for the firm producing at a quantity where marginal revenue is larger than marginal cost. They should expand their production levels so that their marginal cost equals marginal revenue as this will increase profitability.
Because education has spillover benefits, the private market will: a. underallocate resources to education. b. overallocate resources to education. c. produce too much education. d. produce the socially optimum amount of education.
Answer: produce the socially optimum amount of education
Explanation:
Spillover benefits simply refers to the free benefits which are gotten by third parties due to the actions of other people.
In this case, because education has spillover benefits, the private market will produce the socially optimum amount of education. This is the equilibrium achieved based on the spillover effects from the education.
The output level that reflects all the costs and benefits associated with a transaction i.e. it is the equilibrium that would be achieved if the market outcome reflects the effect of externalities.
Leroy ordered a DVD player for his son's birthday. While the manufacturer guaranteed that it would ship the player within ten business days, the player was not shipped until three months after Leroy placed his order. By the time the DVD player arrived, Leroy's son's birthday had long since passed. When the player arrived, Leroy refused to sign for it. Under these circumstances:
A. Leroy holds title to the DVD player.
B. The manufacturer can only regain title if it sues Leroy.
C. Leroy and the manufacture have joint title.
Answer:
C. Leroy and the manufacturer have joint title
it takes fena tailoring 2 hr of cutting and 4 hr of sewing to make a tiered silk organza bridal dress. it takes 4 hr of cutting and 2 hr of sewing to make a lace sheath bridal dress. the shop has at most 18 hr per week available for cutting and at most 18 hr per week for sewing. the profit is $318 on an organza dress and $167 on a lace dress. how many of each kind of bridal dress should be made each week in order to maximize profit
Answer:
Fena should make 2 organza bridal dresses and 4 lace dresses which will yield maximum profit of $1,498.
Explanation:
Fena has choice between two types of bridal dresses for stiching. She can make either organza dresses or lace dresses. The combination of both dress will be identified by equation :
P = 318x + 216y
2x + 4y ≤ 18
3x + 2y ≤ 24
solving the equation we will get maximum profit of $1,498.
On June 3, Novak Company sold to Chester Company merchandise having a sale price of $3,100 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $99, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.Prepare journal entries on the Sage Company books to record all the events noted above under each of the following bases.
(1) Sales and receivables are entered at gross selling price.
(2) Sales and receivables are entered at net of cash discounts.
(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
No.
Date Account Titles and Explanation Debit Credit
(1)
June 3June 12
June 12
(2)
June 3June 12 June 3June 12
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
July 29
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Answer:
(a) Date Account Titles & Explanation Debit Credit
1. Jun-03 Accounts Receivable-Chester Company $3,100
Sales $3,100
(To record sales)
Jun-12 Cash $3,038
Sales Discounts $62
(3,100*2%)
Accounts ReceivableChester Company $3,100
(To record payment received)
2. Jun-03 Accounts Receivable-Chester Company $3,038
($3,100*0.98)
Sales $3,038
(To record sales)
Jun-12 Cash $3,038
Accounts Receivable-Chester Company $3,038
(To record payment received)
(b) Date Account Titles & Explanation Debit Credit
Jul-29 Cash $3,100
Accounts Receivable—Chester Company $3,038
Sales Discounts Forfeited $62
(To record payment received)
When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________. A) segment the market B) provide a service C) enter a new market D) develop brand loyalty E) position its brand
Koczela Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 28,000 $ 23,000 Finished goods $ 57,000 $ 61,000 Additional information: Direct materials $ 68,000 Direct labor cost $ 98,000 Manufacturing overhead cost incurred $ 74,000 Manufacturing overhead cost applied to Work in Process $ 72,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for May is:
Answer:
COGS= $241,000
Explanation:
First, we need to calculate the cost of goods manufactured with allocated overhead:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 28,000 + 68,000 + 98,000 + 72,000 - 23,000
cost of goods manufactured= $243,000
Now, we determine the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 57,000 + 243,000 - 61,000
COGS= $239,000
Finally, we close the under/over applied overhead to COGS:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 74,000 - 72,000
Underapplied overhead= $2,000
We need to debit COGS and credit overhead:
COGS 2,000
Manufacturing overhead 2,000
COGS= 239,000 + 2,000
COGS= $241,000
Proofread the sentence below. Look for up to three errors in grammar, punctuation, capitalization, the use of numbers, and business writing style. Rewrite the sentence, making corrections where necessary. If the sentence is correct as written, write "correct."
The human resources manager made a decision to hire 3 administrative assistants to finish the important essentials.
A corporation reports the following year-end balance sheet data. The company's debt-to-equity ratio equals:Cash $ 41,000 Current liabilities $ 76,000 Accounts receivable 56,000 Long-term liabilities 31,000 Inventory 61,000 Common stock 101,000 Equipment 146,000 Retained earnings 96,000 Total assets $ 304,000 Total liabilities and equity $ 304,000 Multiple Choicea. 0.54b. 1.28c. 2.08d. 0.35e. 0.65
Answer:
0.54
Explanation:
Debt-to-equity ratio = Total Debt ÷ Total Equity
= $107,000 ÷ $197,000
= 0.54
The company's debt-to-equity ratio equals 0.54
The Eggers Corporation filed an amended Form 1120, claiming an additional $400,000 deduction for payments to a contractor for a prior tax year. The amended return was based on the entity's interpretation of a Regulation that defined deductible advance payment expenditures. The nature of Eggers's activity with the contractor did not exactly fit the language of the Regulation. Nevertheless, because so much tax was at stake, Eggers's tax department decided to claim the deduction. Eggers’s tax department estimated that there was only a 15% chance that Eggers’s interpretation would stand up to a Tax Court review.
a. What is the amount of tax penalty that Eggers is risking by taking this position?
b. What would be the result if there was a 45% chance that Eggers’s interpretation of the Regulation was correct?
Answer: See explanation
Explanation:
a. What is the amount of tax penalty that Eggers is risking by taking this position?
The amount of tax penalty that Eggers is risking by taking this position will be:
= $400,000 × 20%
= $400,000 × 20/100
= $400,000 × 0.2
= $80,000
The 20% used is the penalty charged when a claim is more than the final amount that's being allowed by the court or the IRS.
b.What would be the result if there was a 45% chance that Eggers’ interpretation of the Regulation was correct?
The result in this case if there was a 45% chance that Eggers’ interpretation of the Regulation was correct will be that Eggers will have zero tax penalty given. This is because since a reasonable cause was shown by the corporation, the penalty will be waived.
4. Which of the following is a factor of production for a firm?
A. Natural Resources
O B. Company Reputation
C. Customers
O D. Legal Consultants
Answer:
A.
Explanation:
Not too sure but I hope that is right.
During January, Luxury Cruise Lines incurs employee salaries of $1.3 million. Withholdings in January are $99,450 for the employee portion of FICA, $195,000 for federal income tax, $81,250 for state income tax, and $13,000 for the employee portion of health insurance (payable to Blue Cross/Blue Shield). The company incurs an additional $80,600 for federal and state unemployment tax and $39,000 for the employer portion of health insurance.
Required:
Record the necessary journal entries.
Answer:
Date Account Title Debit Credit
Jan. 31 Salary Expenses $1,300,000
Accounts Payable - Insurance $13,000
FICA Tax Payable $99,450
Income Tax payable $276,250
Salaries Payable $911,300
Working:
Income tax payable = Federal income + State income
= 195,000 + 81,250 = $276,250
Date Account Title Debit Credit
Jan. 31 Salaries Expenses $39,000
Accounts Payable $39,000
Date Account Title Debit Credit
Jan. 31 Payroll Tax expenses $180,005
FICA Tax Payable $99,450
Federal and State Unemployment Tax $80,600
The trading securities portfolio of Jerome, Inc., had a total cost of $3,000 and
a fair value of $2,800 on December 31, which is the first year it held trading
securities. Complete the necessary adjusting entry by selecting the account
names from the pull-down menus and entering dollar amounts in the debit and credit columns
Answer and Explanation:
The journal entry is shown below:
Unrealized Loss - Income ($3,000 - $2,800) $200
To Fair value adjustment - trading $200
(being the adjustment to fair value for trading securities is recorded)
Here the unrealized loss would be debited and the fair value adjustment would be credited
Teams often fail because
Answer:
Their chemistry, technical and tactical are weak
Answer:
they cant wok things out- commpuncation. and practices some may no know how to do someting
Explanation:
At UPS, a 12-step process prescribes how drivers should park their trucks, locate the package they are about to deliver, and step off the truck. UPS corporate manual carefully detail rules and routines and dictates where drivers should stop to get gas, how they should hold their keys in their hands, and how to lift and lower packages. What best describes the 12-step procedures at UPS?
Answer:
Programmed decision making
Explanation:
A programmed decision is one that is done by following already laid down rules and procedures. They are Carried out using formal patterns and the goals here are both clear and specific. These rules and routines in UPS are are a good example of how programmed decisions are done. As it can be seen on every aspect of their day to day business activities.
A company's current sales are $300,000 and fixed expenses total $225,000. The contribution margin ratio is 30%. The company has decided to expand production which is expected to increase sales by $70,000 and fixed expenses by $15,000. If these results occur, net operating income will ______. Multiple choice question. increase by $6,000 decrease by $27,000 increase by $21,000 decrease by $15,000
Answer:
Increase by $6,000
Explanation:
Calculation to determine the net operating income
Using this formula
Net operating income=Expected sales increase ×Contribution margin ratio-Fixed expenses
Let plug in the formula
Net operating income=$70,000 x 30% - $15,000
Net operating income=$21,000-$15,000
Net operating income=$6,000 increase
Therefore the net operating income will increase by $6,000
A company that makes modular bevel gear drives with a tight swing ratio for optimizing fork-lift vehicles was told that the interest rate on a loan would be an effective 3.5% per quarter, compounded monthly. The owner, confused by the terminology, asked you to help. What is the APY
Answer:
The APY is 14.9%
Explanation:
To find the annual percentage yield we need to compute the effective annual rate of interest.
The Effective annual rate of return(EAR) is the equivalent rate to be paid where compounding is done frequently at period or interval less than a year.
Compounding implies the regular interval when interest is always computed; in this scenario, it is monthly.
The EAR can be worked out as follows
EAR = ( (1+r)^m - 1 ) × 100
r- interest rate per period
m- number of periods in a year
EAR - Effective annual rate
r = 3.5%/3 = 1.167 % per month
m= number of months in a year = 12
EAR =( 1.01167^12-1)× 100 = 14.9%
The APY is 14.9%
This implies the quoted interest rate of 3.5% per quarter is the same as paying 14.9% per year