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2 years ago

Suppose your uncle offers you $100 today or $150 in 10 years. you would prefer to take the $100 today if the interest rate is

1 answer:

3 0

Suppose your uncle shows you $100 today or $150 in 10 years. you would prefer to take the $100 today if the interest rate is <u>5 percent.</u>

<h3>What is the interest rate?</h3>

An interest rate is the quantity of interest due per period, as a proportion of the amount lent, deposited, or borrowed

The total interest on a quantity lent or borrowed counts on the principal sum, the interest rate, the compounding frequency, and the length of the period over which it is lent, deposited or borrowed.

<h3>How high will interest rates go?</h3>

Market participants think the Fed rate hike cycle will peak in December in a capacity of 3.5-3.75%, followed by rate cuts early next year. This is consistent with anticipations of a recession.

To learn more about interest rate, refer

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1.how can you categorize the buyers who are not price sensitive ?

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3 years ago

The ________ method of developing a pro forma income statement forecasts sales and values for the cost of goods sold, operating

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Percent of sales

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A pro forma invoice contains a description of goods and services that is being provided by the supplier.

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3 years ago

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Dolan Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $31000

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Answer:

Cost Of Goods Sold= $1,930,000

Explanation:

Giving the following information:

Beginning Finished goods inventory 190000

Ending Finished goods inventory 150000

Cost of goods manufactured for 2020 amounted to $1890000

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 190,000 + 1,890,000 - 150,000= $1,930,000

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3 years ago

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. YearCash Flow 1 $800 2 800 3 0 4 1

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Answer:

Total PV= $2,298.24

Explanation:

<u>First, we need to determine the effective annual rate:</u>

EAR= [1 + (i/n)]^n - 1

EAR= [1 + (0.08/4)]^4 - 1

EAR= 0.082

<u>Now, we can determine the present value of the cash flow, using the following formula:</u>

PV= ∑[Cf/(1+i)^n]

Cf1= 800 / 1.082= 739.37

Cf2= 800 / 1.082^2= 683.34

Cf3= 0

Cf4= 1,200 / 1.082^4= 875.53

Total PV= $2,298.24

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3 years ago