answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alexira [117]
2 years ago
8

Western Energy makes quarterly deposits into an account reserved for purchasing new equipment 2 years from now. The interest pai

d on the deposits is 12% per year, compounded monthly. (a) Identify the interest period, compounding period and the compounding frequency in the interest period, (b) Calculate the effective annual interest rate, that is, the APY.

Business
1 answer:
Kryger [21]2 years ago
8 0

Answer:

a) Compounding Period = 1 year

Compounding Frequency = 12 months

b) 12.68%

Explanation:

See attached picture.

You might be interested in
David keeps harping over any problem that he comes across at work. He goes over the details regarding the problem repeatedly.
Mademuasel [1]
David is an agonizer
7 0
2 years ago
Read 2 more answers
Ron is 30 years old and is retiring at the age of 65. when he retires, he will need a monthly income of $1,270 for 10 years. if
Alika [10]

d.

Ron will not make his monthly goal of $1,270 and will need $741.68 to supplement his monthly income when he retires.

3 0
2 years ago
Read 2 more answers
You purchase a put option on Swiss francs for a premium of $.02, with an exercise price of $.61. The option will not be exercise
natita [175]

Answer:

Net Profit = (0.61-0.58) - 0.02

                = 0.01

Explanation:

5 0
2 years ago
P. Daves Inc's stock is currently sells for $45 per share. The stock's dividend is projected to increase at a constant rate of 4
Svetllana [295]

Answer:

The price of the stock six years from now will be $56.94

Explanation:

To calculate the price of a stock that pays a dividend which grows at a constant rate forever, we use the constant growth model of DDM. The current price of stock using the constant growth model is calculated as follows,

P0 = D1 / r - g

As, we don't know the D1, that is dividend expected for the next year, we will calculate it first,

45 = D1 /  (0.12 - 0.04)

45 * (0.12-0.04)  =  D1

45 * (0.08) = D1

3.6 = D1

We use the D1 to calculate the price today. Thus, we will use D7 to calculate the price six years from now.

D7 = D1 * (1+g)^6

P6 = 3.6 * (1+0.04)^6  /  (0.12 - 0.04)

P6 = $56.939 rounded off to $56.94

8 0
2 years ago
Read 2 more answers
Drs. Glenn Feltham and David Ambrose began operations of their physical therapy clinic, called Northland Physical Therapy, on Ja
Oliga [24]

Question attached

Answer and Explanation:

Find attached

5 0
2 years ago
Other questions:
  • Acme inc. has a mission statement that is open to interpretation. many stakeholders identify with it. their mission statement is
    8·2 answers
  • What advice does Lisa Marie Ford have for people interested in a career in marketing or business? (Site 1)
    9·2 answers
  • Holton Company makes three products in a single facility. Data concerning these products follow:
    6·1 answer
  • The village of Hempstead has been taking a look at the issue of responding to 911 calls. It is a small community and geographica
    14·1 answer
  • Cement Works has a beginning cash balance for the quarter of $1,211. The company requires a minimum cash balance of $1,200 and u
    5·1 answer
  • Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its first two years of operation:
    11·1 answer
  • Elizabeth Pie Company has been in business for 50 years and has developed a large group of loyal restaurant customers. Giant Bak
    5·1 answer
  • A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate wheth
    8·1 answer
  • As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been gi
    11·1 answer
  • What is the minimum nominal rate of return that you should accept if you require a 4% real rate of return and the rate of inflat
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!