Randal Inc. will generate $73,000 in annual revenue each year for the next 8 years...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Randal Inc. will generate $73,000 in annual revenue each year for the next 8 years from a new investment. If the appropriate interest rate is 8.5 percent, what is the present value of the savings? Do not round intermediate calculations and round your final answer to 2 decimal places. 8. Find the EAR in each of the cases. Use 365 days a year-Do not round intermediate calculations and round your final answer to 2 decimal places. 9. Effective Rate Stated Rate (APR) Number of Times Compounded Quarterly 8% Monthly 16 12 15 Daily Infinite 10. Eloville Bank want to earn an effective annual return on its consumer loans of 16 percent per year. The bank uses daily compounding interest on its loans. What interest rate is the bank required by law to report to potential borrowers? Explain why this rate is misleading to an uninformed borrower. Use 365 days a year -Do not round intermediate calculations and round your final answer to 2 decimal places
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
