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
goldenfox
4 days ago
11

Anne Lockwood, manager of Oaks Mall Jewelry, wants to sell on credit, giving customers 3 months to pay. However, Anne will have

to borrow from her bank to carry the accounts receivable. The bank will charge a nominal rate of 15% and will compound monthly. Anne wants to quote a nominal rate to her customers (all of whom are expected to pay on time) that will exactly offset her financing costs. What nominal annual rate should she quote to her credit customers
Business
1 answer:
harina [3.5K]4 days ago
6 0

Answer:

15.18%

Explanation:

To calculate the nominal annual rate

The first step is to determine EFF% with this formula

EFF% = [1 + (Nominal rate percentage/Number of months in a year)]^Number of months in a year

Let's substitute into the formula

EFF% = [1 + (15%/12)]^12

EFF% = (1 + 0.0125)^12

EFF% = (1.0125)^12

EFF% = 1.1608 × 100%

EFF% = 116.08%

The second step is to find Rnom for quarterly compounding at 116.08% using this formula

Rnom compounding quarterly = (1 + (R/4))^4

Let's plug into the formula

Rnom compounding quarterly = (116.08%)^(1/4) Rnom compounding quarterly = 1 + R/4

Thus,

Rnom compounding quarterly = 15.18%

Therefore, Anne Lockwood should offer her customers a nominal rate of 15.18% compounded quarterly

You might be interested in
If a store sold 25 pairs of socks, making a 25% profit of $150, how much did they charge for each pair?
Katen [3220]
25x - 0.25 = 150
25x = 149.75
x = 5.99
Each pair costs $5.99.
6 0
1 month ago
Chill, a beverage manufacturer, offers varied versions of its products that include diet, cherry, vanilla and caffeine-free vers
Nady [3258]

Answer:

A differentiated market

Explanation:

When a company creates products for at least two distinct categories or demographics, it follows a differentiated marketing approach.

For example, a retailer might promote items in multiple towns appealing to various individuals, or a business may market a brand tailored to women across different age groups.

7 0
14 days ago
David N. gets $3 per week as an allowance to spend any way he pleases. Because he likes only peanut butter and jelly sandwiches,
Nady [3258]

Response:

The answer to the question is provided below.

Analysis:

(a) What quantities of peanut butter and jelly will David purchase with his $3 weekly allowance?

It is stated that David prefers 2 ounces of peanut butter for each ounce of jelly, thus

2Pb = J, and the budget constraint can be expressed as 0.05Pb + 0.1J = 3.

Using substitution,

David will acquire Pb = 30 ounces, J = 15 ounces.

30(0.05) + 15(0.10) = 3

(b) If the cost of jelly rises to $0.15 per ounce, what quantities of each item would he purchase?

If pj = $0.15,

24(0.05) + 12(0.15) = 3

Using substitution, we find J = 12 ounces, Pb = 24 ounces.

4 0
1 month ago
A one-year zero coupon bond costs \$99.43$99.43 today. Exactly one year from today, it will pay \$100$100. What is the annual yi
Mariulka [3472]

Answer:

0.00573

Explanation:

Today's bond cost is $99.43

The bond's value at the year's end is $100

The difference calculates to: $100 - $99.43 = $0.57

This amount of $0.57 indicates the bond's yield. Therefore, the yearly yield is computed as $0.57/$99.43 = 0.00573

This yield represents the one-year discount rate applicable for a future value of $100, where its present value is $99.43.

Final Answer

0.00573

5 0
11 days ago
Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk. joint vent
arsen [3236]

Answer:

D. Foreign Subsidiary

Explanation:

A Foreign Subsidiary is a firm that's either partially or fully owned by a larger corporation headquartered in a different nation. This indicates that the company did not organically establish development or begin operations in the nation where it operates. Establishing foreign subsidiaries is a key method for entering international markets, which entails significant risk and commitment compared to other methods listed in the question, due to considerations like costs and time for setting up a foreign subsidiary, compliance issues, tax obligations, immigration regulations, and securing office space and employee accommodations. These factors are less of a concern in joint ventures, strategic alliances, or franchising when seeking to enter international markets.

8 0
1 month ago
Other questions:
  • B.f. skinner, a behaviorist, would argue that the most important things that shape development are _____.
    14·1 answer
  • When the price of erasers increases from $1.50 to $2.50, the quantity demanded of pencils is unchanged. The cross-price elastici
    14·1 answer
  • The management of warby parker believes that its operations must be grounded in
    13·1 answer
  • In your opinion, what would be the consequences if the memory manager and the processor manager stopped communicating with each
    11·1 answer
  • A production line engineer, Shane, checks every chip for quality control (QC). His workers find errors approximately every 150 c
    12·1 answer
  • Coca‑Cola and Pepsi are both releasing a new soda at the same time. Each company is fairly well known, and they are both decidin
    6·1 answer
  • The Fime Corporation uses a standard costing system. The following data have been assembled for December: Actual direct labor-ho
    6·2 answers
  • Nikolas Industries has a cash balance of $20,000 on July 1, 20x8. The company is in the process of preparing the cash budget for
    14·1 answer
  • Omar is presenting a persuasive speech to convince his class to begin investing for retirement early in life. He begins with a p
    13·1 answer
  • Demand for a certain radial tires at a tire company is 800 units per month. Each tire costs the company $80. Ordering costs are
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!