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2 years ago

in forward and futures contracts, the risk of non-fulfilment of contract terms is most likely borne by:

1 answer:

7 0

In forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by both parties to the contract.

<h3>What are forward and futures contracts?</h3>

The difference between a forward and futures contract lies in their establishment.

A forward contract is a personal arrangement traded over the counter whereas, a futures contract is a standardized contract made through an established exchange.

Thus, in forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by both parties to the contract.

Learn more about forward and futures contacts at brainly.com/question/15581105

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What is time utility and possession utility?

Pie

Answer: The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services.

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3 years ago

Read 2 more answers

Jason Allen is 30 years and wants to retire when he is 65. So far he has saved (1) $6,960 in an IRA account in which his money i

grandymaker [24]

Answer:

It will make annual deposits for $ 4,056.202

Explanation:

His goal is a future value of 1,000,000 in 35 years.

we will deduct from this the future value of his other investment:

IRA

$Principal \: (1+ r)^{time} = Amount$

Principal 6,960.00

time 35.00

rate 0.08300

$6960 \: (1+ 0.083)^{35} = Amount$

Amount 113,397.95

Market account

$Principal \: (1+ r)^{time} = Amount$

Principal 4,310.00

time 35.00

rate 0.05250

$4310 \: (1+ 0.0525)^{35} = Amount$

Amount 25,837.53

Proceeds required from the fund:

1,000,000 - 113,397.95 - 25,837.53 = 860,764.52

Now we calculate the PMT:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV $860,764.52

time 34 years

(we must notice it will beging this investment next year, so at 31 years old)

rate 0.0934

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C $ 4,056.202

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3 years ago

You are ready to buy a house, and you have $20,000 for a down payment and closing costs. Closing costs are estimated to be 4% of

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Answer:

So we can offer for the house $180119.95

Explanation:

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Maximum loan affordable = P*(1-(1/(1+i)^n))/i

=1000*(1-(1/(1+0.5%)^360))/0.5%

=$166791.61

Closing cost is 4% of loan value = 166791.61*4% =$6671.66

Balance Amount left for down payment = 20000-6671.66

=$13328.34

It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.

Cost of house paid maximum = Down payment + Affordable loan

=13328.34+166791.61

=$180119.95

So we can offer for the house $180119.95

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4 years ago

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3 years ago

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Alexus [3.1K]

Answer:

1. Adjusted cash balance per bank $13,760

Adjusted cash balance per books $13,760

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Explanation:

1. Preparation of a Bank reconciliation statement

at July 31, 2022

CRANE COMPANY

Bank Reconciliation

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Add: Deposits in transit $4,544

Less: Outstanding checks ($1,920)

Adjusted cash balance per bank $13,760

Cash balance per books $11,264

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Less: Bank service charge ($64)

Adjusted cash balance per books $13,760

2. Preparation of the adjusting journal entries at July 31 on the books of Crane Company.

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Cr Notes Receivable $2,560

Jul-31

Dr Miscellaneous Expense $64

Cr Cash $64

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3 years ago