First Choice Bank wants to earn an effective interest rate of 18% per year. In order to suit different potential borrowers' needs, the bank offers two options. The first calculates interest on a weekly compounding basis while the second calculates interest on a monthly compounding basis. What interest rate is the bank required to report for the two options? Give one reason why a borrower might prefer monthly compounding over weekly compounding.

Answers

Answer 1

Answer:

What interest rate is the bank required to report for the two options?

APR for weekly compounding = 0.003188 x 52 = 0.1658 = 16.58%APR for monthly compounding = 0.01389 x 12 = 0.1667 = 16.67%

Give one reason why a borrower might prefer monthly compounding over weekly compounding.

In this case, the lender should be indifferent between monthly or weekly compounding since the effective interest rate is equal for both (if the pay in during the first week). But generally, borrowers should choose the longest compounding period option. The longer the compounding period, the less interests charged will earn more interest. In some cases. If you pay after the second week started, then you might be charged a slightly higher interest.

Explanation:

effective interest rate = (1 + i/n)ⁿ - 1

for weekly compounding:

0.18 = (1 + i)⁵² - 1

1.18 = (1 + i)⁵²

⁵²√1.18  = ⁵²√(1 + i)⁵²

1.003188 = 1 + i

0.003188 = i

for monthly compounding:

0.18 = (1 + i)¹² - 1

1.18 = (1 + i)¹²

¹²√1.18  = ¹²√(1 + i)¹²

1.01389 = 1 + i

0.01389 = i


Related Questions

PLEASE ANSWER BOTH OF THE QUESTIONS PLS!!!!!!!!!!!!!!!!!!!!

Answers

What is the product that you want to find where it comes from?

Where do teenagers get all the money they need to make purchases? I noticed several new stores had opened up at the local mall. Most of these new stores focused on teenage and young consumers. Yesterday I went shopping.


This paragraph lacks
a.
Proper conventions
c.
Good word choice
b.
Organization
d.
Voice

Answers

Answer:

b good word choice

Explanation:

good word choice

Answer:

Organization

Explanation:

:)

how do you write 4.3756*10 to the power of 4

Answers

Answer:

=43,756

From online sources the full question should be:

How do you write 4.3756*10 to the power of 4 in standard form:

Multiple-choice options:

a) 437,560,000   b)  43, 756    c). 0.00043756  d).  4,3756

Explanation:

4.3756 *10 to the power 4

=4.3756 x10^4

=4.3756 x 10,000

=43,756

Your company produces and markets electronic equipment. Sales last year totaled $2,446,320. The company goal is to increase sales by 12 percent this year. Your division goal is to achieve 25 percent of total sales. What is the dollar value of your division goal?

Answers

Answer:

$684,970

Explanation:

The sales last year were $2,446,320.

The company intended to glow sales by 12 %. the new sales amount will be

=$2,446,320 +  (12% of $2,446,320)

=$2,446,320 +(0.12 x 2446,320)

=$2,446,320 + 293,558.40

=$ 2,739,878.4

The division's sales will be 25% of 2,739,878.4

=25/100 x $ 2,739,878.4

=0.25 x $ 2,739,878.4

=$ 684,969.6

=$684,969.6

=684,970

Which of the following describes a food retailer?


uses products from farmers and ranchers, commodity processors, and food manufacturers to offer food to their customers

supports the farmers and ranchers with feed and seed

transports the farmers’ and ranchers’ products and the processed and manufactured food products throughout the system

buys the processors’ products to make prepared food

Answers

Answer:

transports the farmers and ranchers

Answer:

B

Explanation:

paragraph of changing place​

Answers

Answer:

put the hold question in the text box

PLEASE HELP ME ILL MAKE YOU BRAINLIEST

Answers

Here’s my suggestion, search it up on google trust me your going to get your answer way faster than here

Which of the following would NOT be a career found in the Marketing cluster?
Question 2 options:


Sales Managers


Public Relations Managers


Film Editors


Telemarketers

Answers

Answer is Film Editors

Is not a career found in the marketing cluster

In Towneville, the average persons earns $15,000, and the CPI is 125. In Gutenberg, the average person earns $25,00 and the CPI is 225. Where would you choose to live, and why?

Answers

Answer:

I would choose to live in Townville. This is because the real wage of $12,000 in Townville is greater than the real wage of $11,111 in Gutenberg.

Explanation:

Note: The correct amount which average persons earns in Gutenberg is $25,000, not $25,00 that is mistakenly written in the question.

The explanation to the answer is now provided as follows:

Where to live and why can be determined by comparing the real wages in Towneville and Gutenberg.

Real wage refers to the nominal wage that has been adjusted for inflation. The real wage can be calculated using the following formula:

Real wage = (Nominal wage / CPI) * 100 ……………. (1)

Where;

For Towneville:

Nominal wage = $15,000

CPI = Consumer price index, an inflation measure = 125

Substituting the values into equation (1), we have:

Real wage in Townville = ($15,000 / 125) * 100 = $120 * 100 = $12,000

For Gutenberg:

Nominal wage = $25,000

CPI = Consumer price index, an inflation measure = 225

Substituting the values into equation (1), we have:

Real wage in Gutenberg = ($25,000 / 225) * 100 = $111.11 * 100 = $11,111

Based on the calculations above, I would choose to live in Townville. This is because the real wage of $12,000 in Townville is greater than the real wage of $11,111 in Gutenberg.

PLEASE ANSWER THE 2 QUESTIONS IN THIS SCREENSHOT FOR ME THANK YOU IF YOU DO AND HERE IS A BRAILIEST IF 2 PEOPLE ANSWER IT OF COURSE:

Answers

Answer:

The 1st one is something you want in the future that is expensive the second would say" A customer wants to know the price and the product it self and if its durable"

Explanation:

Answer:

One high end product I want to buy in the future is a thread ripper. It is a processor which is one of the reasons why a computer will run. It is like the heart, it makes all the components work

the customer will want to know that the product is one of the most expensive out there but it is defiantly worth the money. you have to have a good enough mother board to run the thread ripper though. You also need DDR 4 ram at least which makes the computer components work faster and gets rid of lag of course

Explanation:

Many performers, like singers, actors, and athletes, get paid large amounts of money. Do you think they earn these amounts or should they get paid less? Why?

Answers

Answer:

They deserve that amount of money, they have worked hard to earn that sum of money.

Answer:

no they work for what they have and they work there way to where they are because not everyone can wakeup and be a D-1 football player or a singer those things take time, effort, determination to not give up, and etc. So with all this i think they get payed for what they earn becuase not all singers actors and althletes make the same amount of money!

Explanation:

According to the OOH, what are some educational, training, certification, or licensing options required or helpful for Chefs? Check all that apply.

Answers

The correct answer is:

A) medical school

C) internship and residency program

D) license

Chefs and head cooks typically need a high school diploma and work experience to enter the occupation. Some attend a culinary program at a community college, technical school, culinary arts school, or 4-year college. Others learn through apprenticeship programs.

What are the minimum requirements to be a chef?

To become a chef, you need experience in a professional kitchen. Many chefs go to culinary school or complete a certificate or associate degree at a community college in order to learn the fine technical aspects of the trade.

Learn more about chefs here https://brainly.com/question/23868778

#SPJ2

Answer:

A, B, F, G

Explanation:

Edge.2023 <3

:)

What are 3 reasons why people work

Answers

Answer:

to earn money to feed their families, to pay their bills, to go places,

Explanation:

- make money
- take care of themselves (like a house, food, water etc.)
- special occasions (vacations, road trips etc)

my answers are related to "make money" but because you are working, you make money to do those fun things. if that makes sense lol

The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 12% bonds having a face amount of $35 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 104 ($36.4 million) before their scheduled maturity.

Answers

Answer:

1. Dr Interest Expenses $2,380,000

Cr Discount on Bonds Payable $280,000

Cr Cash $2,100,000

2. Dr Bonds Payable $35,000,000

Dr Loss on redemption of Bonds $2,120,000

Cr Discount on Bonds Payable $720,000

Cr Cash $36,400,000

Explanation:

Preparation of the necessary journal entries by Twin Digital on July 1 2021

1. Dr Interest Expenses $2,380,000

[$ (35 - 1 million) x 14% x 6/12]

Cr Discount on Bonds Payable $280,000

Cr Cash $2,100,000

[$35 million x 12% x 6/12]

(Being to record Interest paid)

2. Dr Bonds Payable $35,000,000

Dr Loss on redemption of Bonds $2,120,000

Cr Discount on Bonds Payable $720,000

[1 million - $280,000]

Cr Cash $36,400,000

[35 million x 104/100]

(Being to record Bonds called at 104)

Answer:

1. Dr Interest Expenses $2,380,000

                   Cr Discount on Bonds Payable $280,000

                     Cr Cash $2,100,000

2. Dr Bonds Payable $35,000,000

Dr Loss on redemption of Bonds $2,120,000

                                     Cr Discount on Bonds Payable $720,000

                                      Cr Cash $36,400,000

Explanation:

Preparation of the necessary journal entries by Twin Digital on July 1 2021

1. Interest Expenses $2,380,000 [$ (35 - 1 million) x 14% x 1/2]

  Cash Payment $2,100,000 [$35 million x 12% x 1/2]

  Discount on Bonds Payable [$2,380,000-$2,100,000 = $280,000]

2. Dr Bonds Payable $35,000,000 [Face Value]

Loss on redemption of Bonds $2,120,000 [Cash + Discount -Face Value]

Discount on Bonds Payable $720,000 [1,000,000- $280,000]

Cash $36,400,000 [35 million (face value) x 104/100 at premium]

PLEASE ANSWER THESE 3 QUESTIONS I WILL GIVE BRAINLIEST

Answers

Answer:

Times of maximum fear is the best time to buy stocks, while times of maximum greed are the best time to sell.

Explanation:

Behind the truism is the tendency of the markets to overshoot on both the downside and the upside. Part of the reason is a pure herd instinct that drives stock prices. The investor who takes an unbiased look at the market might be able to see the herd instinct at work and take advantage of the extreme ups and downs that it causes. That investor can buy low and sell high.

Unfortunately, it's easy to determine after the fact whether a price was too low or too high and even why. During the moment, it is monumentally difficult. Prices both affect and reflect the psychology and emotions of market participants.

For this reason, "buy low, sell high" can be challenging to implement consistently. Traders trying for a more objective view consider other factors to make a more informed decision. These factors include moving averages, the business cycle, and consumer sentiment.

QUESTION 5 of 10: Last year, your store's total revenue was $272,000. The store's total discounts were $3,505 and returns totaled $1,459.
What were your store's net sales?
a) $209,844
b) $254,984
c) $267,036
d) $289,890

Answers

Answer:

c) $267,036

Explanation:

Net sales will the total revenue minus discounts minus the sales returns.

I.e Net sales = Revenue - discounts -returns

=$272,000- $3,505 - $1,459.

=$267,036

There will be a higher equilibrium price and lower quantity if _____.

Answers

Answer:

Supply decreases

Explanation:

Equilibrium is a balanced scenario where demand matches supply. At equilibrium, both sellers and buyers are happy with the current price. The market has no excess demand or supply or demand.

A decrease in supply while demand stays constant results in many customers competing for the few products in the market. There will be scarcity because the supply cannot satisfy demand. The supply curve shifts outwards or to the right resulting in a new and higher equilibrium point. The price will increase while the quantity supplied declines.

How is communism produced ?

Answers

Communism, political and economic doctrine that aims to replace private property and a profit-based economy with public ownership and communal control of at least the major means of production (e.g., mines, mills, and factories) and the natural resources of a society. Communism is thus a form of socialism—a higher and more advanced form, according to its advocates. Exactly how communism differs from socialism has long been a matter of debate, but the distinction rests largely on the communists’ adherence to the revolutionary socialism of Karl Marx.

i am not sure if that is going to answer your question but that’s the best i could do. have a good day

What range of interest rate on a
traditional loan can a company in good
financial standing expect from a bank?
A. 1% up to 10%
B. 15% up to 25%
C. 30% up to 45%
D. 50% and up.

Answers

The correct answer is B

both mortgages and auto loans

A are riskier for lenders.
B are riskier for borrowers.
C require a down payment in general.
D require minimum payments.​

Answers

both mortgages and auto loans require minimum payments.

Answer:

C

Explanation:

require a down payment in general

PLEASE HELP ME ILL MAKE YOU BRAINLIEST

Answers

Answer:

individual

Explanation:

pretty sure

Answer: D

Explanation:

its d not c

organization formed mainly by traders and manufacturers to cater for the interest of their members is​

Answers

Answer:

Trade associations

Explanation:

A trade association is formed by independent business people or business units in the industry. The objective of a trade association is to get the members to work together to improve the business conditions in the industry. A trade association allows members to network and exchange important business information.

Trade associations are registered as non-profit-making organizations. They provide a platform through which businesses can advocate for their interests with the authorities.

time is limited i have 2 minuets on this
The best time to visit a college campus is:

A) during spring break.
B) Monday through Thursday.
C) over the summer.
D) on any Friday.

Answers

I wanna say the answer is C. OVER THE SUMMER.

Explanation: looking it up it says “later summer early September”

MOTIVATION TIME

Success doesn’t just find you. You have to go out and get it.

Answers

Answer:

thnak u that made my day

Explanation:

What is the opposite of fade-in, when the image goes black?

Answers

Answer:Umm fade out is the opposite if fade in, but it might not be correct.

Explanation:

;)

MARK MORE THAN ONE PLS!!!!!!!! HELP!!!!
Where can you look to find marketing materials from competitors to learn about their products? Mark all that apply.
A. TV Advertisements
B. Social Media
C. Sales flyer
D. The radio

Answers

the answer is A and B

Use the drop-down menus to answer the questions.

Which feature of a text box can be used to change the orientation of the text box?

Which action allows for the selection of all the text in a text box?

How is the mini toolbar accessed?



so i actually figured it out lol

Answers

Answer:

The answers are all B

Explanation:

The feature that can be used to change the orientation of a text box is the "Text Direction" option.

Which action allows for the selection of all the text in a text box?

This option can be found in the "Format Shape" dialog box, which can be accessed by right-clicking on the text box and selecting "Format Shape" from the context menu. Within the dialog box, the "Text Box" category contains the "Text Direction" option, which can be set to either "Horizontal" or "Vertical."

The action that allows for the selection of all the text in a text box is pressing the "Ctrl+A" keyboard shortcut. This will select all the text within the text box, allowing for quick editing or formatting changes.

The mini toolbar is a context-sensitive toolbar that appears when text is selected in a document or other text-based application. It provides quick access to common formatting options such as font, font size, bold, italic, and underline.

To access the mini toolbar, simply select some text and right-click on it. The mini toolbar will appear next to the cursor, allowing for quick formatting changes without having to navigate to the main ribbon or toolbar.

The mini toolbar can also be customized to include additional formatting options by right-clicking on it and selecting "Customize Mini Toolbar" from the context menu. Overall, the mini toolbar is a convenient tool for quickly formatting text without interrupting the flow of work.

Learn more about text box here

https://brainly.com/question/11166451

#SPJ2

Which tasks would be performed by someone in an Administration and Information Support career?

analyzing information to predict future sales and supervising others
answering telephone calls and filing paperwork
training employees and administering employee benefits
hiring and firing employees and approving budgets

Answers

Answer:

B. Hope this helps my friend!

Explanation:

Answer:

anwer is B

Explanation:

private enterprise is run mainly to?

Answers

Most private enterprise mainly run to gain profit

What type of market model is wheat farm?

Answers

Answer:

competitive

Explanation:

The market for wheat is often taken as an example of a competitive market because there are many producers, and no individual producer can affect the market price by increasing or decreasing its output. For this reason, each farmer takes the market price as predetermined.

Answer:

Competitive

Explanation:

The market for wheat is often taken as an example of a competitive market, because there are many producers, and no individual producer can affect the market price by increasing or decreasing his output. For this reason, each farmer takes the market price as predetermined.

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