Ask question

Ask question

All categories

3 years ago

11

Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you hav

e to wait to buy the engine?

1 answer:

sergejj [24]3 years ago

4 0

Amount = Principal ( 1 + interest rate) ^ years

$1000 = $600 ( 1 + .07 ) ^ years

$1000 / $600 = 1.07 ^ years

1.66667 = 1.07 ^ years

years = 8

You might be interested in

Lance Brothers Enterprises acquired $720,000 of 3% bonds, dated July 1, on July 1, 2016, as a long-term investment. Management h

stiv31 [10]

Answer:

A) July 1, 2016, 3% bonds are acquired as long term investment.

Dr Investment in 3% bonds 720,000

Cr Cash 600,000

Cr Discount on investment in 3% bonds 120,000

B) December 31, 2016, interest earned from investment in 3% bonds.

Dr Cash 10,800

Dr Discount on investment in 3% bonds 1,200

Cr Interest revenue 12,000

Explanation:

the bonds' face value is $720,000 but since the company paid only $600,000 for them, it means that it bought them at a discount price. Therefore, the discount, $720,000 - $600,000 = $120,000, must be recorded, and later amortized.

To calculate the amount of interest revenue that will be amortized as discount on investment:

(bonds' market price x market interest rate x 1/2) - (bonds' face value x coupon rate x 1/2) = ($600,000 x 4% x 1/2) - ($720,000 x 3% x 1/2) = $12,000 - $10,800 = $1,200

8 0

3 years ago

Read 2 more answers

Barlow Company's Accounts Payable balance at December 31, 2008, was P1,800,000 before considering the following transactions: •

mrs_skeptik [129]

Answer: The answer is 1950000

Explanation:

✓ Goods in transit on December 31, 2008:

Goods amounting to 100000 will be added into purchases of the year-end because they have already been sold as risk and rewards have been transferred to the Barlow that is goods have been physically dispatched to the Barlow. Hence this will increase accounts payable by 100000.

✓Goods in transit lost:

These words will also be included in the purchases and accordingly in the accounts payable irrespective of the fact that these have been destroyed. These goods were dispatched to the Barlow and therefore risk and rewards also been transferred hence purchase is done from Barlow's perspective.

So:

Total accounts payables are as under

Opening balance: 180000

Goods in transit reached next year:100000

Goods in transit lost:50000

Total: 1950000

4 0

3 years ago

If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people t

vitfil [10]

Answer:

If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people to try to find a job and employed people to want to work _______ hours.

a. more; longer.

The____ would _____.

b. quantity of labor supplied; increase.

Explanation:

Generally, when wage rates increase, this will led to an increase in the inflation rate. The problem is what happens if wages increase less than the inflation rate. This means that real wages will actually decrease once we adjust them to inflation. This will cause more people trying to get a job or working longer hours just to be able to pay for the same amount of goods as before.

In this example, the wage rate increased by 13.1%, but the inflation rate increased by 16%, so real wages decreased.

8 0

3 years ago

The markup on a video game is 15% of the sale price. If the video game sells for $58.82, what was the cost (in $)? (Round your a

Tanzania [10]

Answer:

$51. 15

Explanation:

The selling price is $58.82

The mark-up is 15% of the selling price.

The cost price is ???

The $58.82 is 115% of the cost price.

the cost price is 100%

cost price

= 58.82/115 x 100

= $0.5114 X 100

=$51. 15

5 0

3 years ago

When the Fed buys $100 worth of bonds from a primary dealer, reserves in the banking system A. increase by more than $100. B.

ruslelena [56]

Answer:

The correct answer is D.

Explanation:

The fed buys $100 worth of bonds from a primary dealer. The fed will pay the dealer for these bonds. This will cause an increase in the total reserves by $100. The money supply will increase by more than $100. The extent of increase in the money supply depends on the required reserve ratio. This is an example of an expansionary monetary policy.

4 0

3 years ago