Partners Bank offers to lend you $50,000 at a nominal rate of 5.0%, simple interest, with interest paid quarterly. An offer to lend you the $50,000 also comes from Community Bank, but it will charge 6.0%, simple interest, with interest paid at the end of the year. What's the difference in the effective annual rates charged by the two banks?
A. 1.56%
B. 1.30%
C. 1.09%
D. 0.91%
E. 0.72%
Answer: D
You might also like to view...
Which of the following is an example of a direct labor efficiency standard?
A) $20 per direct labor hour B) 50 square feet per unit C) $0.95 per square foot D) 6 direct labor hours per unit
All variable costs except manufacturing costs are subtracted from sales to determine the total contribution margin
Indicate whether the statement is true or false
Rogers Rods & Reels Ltd. Rogers Rods & Reels Ltd. manufactures and sells various types of fishing equipment. At the end of 2011, Rogers had estimated for the production and sale of 15,000 bass fishing rods. Each rod has a standard calling for 1.5 pounds of direct material at a standard rate of $8.00 per pound and 15 minutes of direct labor time at a standard rate of $.18 per minute. During 2012,
Rogers actually produced and sold 16,000 rods. These 16,000 rods had an actual direct materials cost of $179,200 (25,600 pounds at $7.00 per pound) and an actual direct labor cost of $44,800 (224,000 minutes at $.20 per minute). Each rod sells for $50. Refer to the Rogers Rods & Reels Ltd. information above. What is Rogers' net operating income based on a flexible budget? A) $579,500 B) $564,800 C) $576,000 D) $590,000
An agency may impose in its orders sanctions, such as seizing property or revoking a license
a. True b. False Indicate whether the statement is true or false