Answer:
option A,$19,200
Explanation:
The amount stock dividend issued that needs to be transferred from retained earnings to paid-in capital accounts by debiting the retained earnings and crediting the paid-in capital accounts is computed by the below formula:
Stock dividend value=stock dividend %* issued shares*market price
stock dividend % is 4%
issued shares is 40,000 shares
market price of stock is $12
stock dividend value=4%*40,000*$12=$19,200
The correct option is $19,200 option A.
One should be misled by the issue price of $8 per share,since that gives a different option which is wrong
Answer: The correct answer is "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future.".
Explanation: The statement "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future." is NOT TRUE because through a correct analysis of the variables and a good amount of quality information it is possible to plan more than 5 years in the future and obtain good results.
Answer:
Therefore after 16.26 unit of time, both accounts have same balance.
The both account have $8,834.43.
Explanation:
Formula for continuous compounding :
P(t)= value after t time
= Initial principal
r= rate of interest annually
t=length of time.
Given that, someone invested $5,000 at an interest 3.5% and another one invested $5,250 at an interest 3.2% .
Let after t year the both accounts have same balance.
For the first case,
P= $5,000, r=3.5%=0.035
For the second case,
P= $5,250, r=3.5%=0.032
According to the problem,
Taking ln both sides
Therefore after 16.26 unit of time, both accounts have same balance.
The account balance on that time is
=$8,834.43
The both account have $8,834.43.
If none of the children are willing to pay than the bank will take the house back if the father had a loan on it.
Answer:
$81.13
Explanation:
first we must calculate the effective monthly interest rate:
1.06 = (1 + i)¹²
1.004868 = 1 + i
i = 0.4868%
the future value of this annuity is given, but we need the monthly contribution:
monthly contribution = future value / FV annuity factor
future value = $1,000
FV annuity factor, 0.4868%, 12 periods = 12.32656
monthly contribution = $1,000 / 12.32656 = $81.13
