Juanita petino, a nutritionist, decided to test the effects of two breakfast cereals, kinglo and loopy, on different consumer gr

Answer:

Both divisions are showing equal performance with an ROI of 14%.

Explanation:

The financial figures given have been organized as follows:

                                      Consumer ($)            Commercial ($)

Sales revenue                         22,000                    37,000

Divisional income                       3,850                     3,885

Divisional investment                27,500                   27,750

Current liabilities                      1,000                     800

R&D                                          1,000                   1,000

The resulting calculations are as follows:

Divisional ROI = Divisional income / Divisional investment

Consumer division ROI = $3,850 / $27,500 = 0.1400, or 14%

Commercial division ROI = $3,885 / $27,750 = 0.1400, or 14%

This illustrates that investment returns are equal at 14% for both divisions.

Answer:

4.88%

Explanation:

To determine the interest rate, use the formula:

r=(FV/PV)^(1/n)-1, where

r=interest rate

FV= future value= 423.17*(12*5)=423.17*60=$25,390.2

PV= initial amount= $20,000

n= time periods= 5

Substituting the values into the equation yields:

r=(25,390.2/20,000)^(1/5)-1

r=1.048-1

r=0.0488→4.88%

This indicates that the bank's annual interest rate is 4.88%.