Answer:
$906.30
Explanation:
Face value (FV) = $1000
Coupon payment (C) = 7% of $1000 = $70
Yield to maturity (r) = 8% = 0.08
t = 18
Number of compounding periods (n) = 1 (annually)
Using the relation:
C[( 1 - (1 + r/n)^-nt) / (r/n)] + FV / (1 + r/n)^nt
70[(1 - (1 + 0.08)^-1*18) / (0.08/1)] + 1000 / (1 + 0.08/1)^1*18
70[1 - (1.08)^-18) / 0.08] + 1000 / 1.08^18
70[(1 - 0.2502490)/0.08] + (1000 / 3.99601949918)
70(9.3718871) + 250.24902
= $906.281117
= $906.30
Prices and wages can fluctuate over time, and there is no correlation between inflation and unemployment.
In the long run, wages and prices are adaptable and there is no correlation between inflation and unemployment because the economy is at full employment.
Is there a link between unemployment and inflation?
In the past, unemployment has been inversely correlated with inflation.This indicates that unemployment decreases when inflation rises.Conversely, lower inflation corresponds to higher unemployment.There will be more demand for goods and services when more people are employed.
How do wages and inflation relate to one another?
Real wages are lowered as a result of inflation's effects on the capital stock and relative prices in this context.The two impacts are added substance and cause the decrease in genuine wages to surpass the decrease in per-capita Gross domestic product.During times of high inflation, this mechanism may increase poverty.
Learn more about Prices and wages here:
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Value is defined as a customer's subjective evaluation of benefits relative to costs to determine the worth of a firm's product offering relative to other product offerings.
Answer:
Explanation:
The journal entries are shown below:
On January 31
Allowance for doubtful accounts A/c Dr $800
To Account receivable A/c $800
(Being the written off amount is recorded)
On January 31
Account receivable A/c Dr $300
To Allowance for doubtful accounts A/c $300
(Being the reverse entry is made)
On March 9
Cash A/c Dr $300
To Accounts receivable A/c $300
(Being the amount is collected)