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soldi70 [24.7K]
3 years ago
8

2. The Jasmine Tea Company purchased merchandise from a supplier for $43,338. Payment was a noninterest-bearing note requiring J

asmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement
Business
1 answer:
cestrela7 [59]3 years ago
4 0

Answer:

3%

Explanation:

Given the following :

Purchased merchandise = $43,338

Number of payments required = 6

Payment per period = $8,000

PV factor (PVIFA) = (purchased merchandise / payment per period)

PVIFA = (43,338 / 8000) = 5.41725

Using the PVIFA table, we locate the interest rate on PVIFA factor of 5.41725 for a period of 6 years.

For PVIFA of 5.4172, the interest rate is 3%

Hence the implicit Interest t rate = 3%

PVIFA = [1 - (1+r)^-n] ÷ r

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As the owner of La Boulangerie Bakery in Baton Rouge, Louisiana, you have a devoted clientele savoring your delicacies. Your sal
Mice21 [21]

Answer:

La Boulangerie Bakery,

Baton Rouge,

Louisiana, U.S.A

25th April, 2021

Dear esteemed customers,

I bring to you an unpalatable news about the changes that would be initiated in our business approach to our customers.

As you can bear witness to, there has been a drastic increase in the cost of doing business in our industry with the notable changes being in the wheat used in producing our confectioneries, the sugar as well as the rising cost of transportation to various customers' locations.

Taking this into account, our company decided to introduce a flat rate delivery cost of $20 irrespective of the location of our customers. This would help us to minimize our production cost. Inorder to also consider our customers, there is a free 20 pieces cake (box) offered to every customer who buys 50 box of each product. This means, 50 box of cupcakes earns you one box free, 100 box cupcake purchase earns you 2 free boxes.

I do hope you would understand our challenges as a company and bear with us regarding to this delivery charge introduction.

Sincerely,

Maris Albert (For the company)

Explanation:

3 0
3 years ago
Is 5 a composite or prime number
enot [183]
5 is a prime number
5 0
3 years ago
Read 2 more answers
You deposit $2,000 in a savings account and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to
qaws [65]

Answer:

nominal interest rate = 5%

real interest rate = 3%

Explanation:

given data

deposit previous = $2,000

deposit present = $2,100

CPI consumer price index rises =  200 to 204

to find out

nominal interest rate and real interest rate

solution

we get here first nominal interest rate that is express as

nominal interest rate = ( deposit present - deposit previous ) ÷ deposit previous × 100    ..........................1

put here value we get

nominal interest rate = \frac{2100-2000}{2000}  × 100

nominal interest rate = 5%

and

now we get here inflation rate that is

inflation rate = ( CPI present - CPI previous ) ÷ CPI previous  × 100    .............2

inflation rate = \frac{204-200}{200}  × 100

inflation rate = 2%

and

real interest rate will be as

real interest rate = nominal interest rate - inflation rate    .................3

real interest rate = 5% - 2%

real interest rate = 3%

5 0
3 years ago
Sumitomo Bank, a large bank in southern California, has just purchased 120 high-speed telephone fax machines (costing about $1,3
Kruka [31]

Answer:

A) accessory equipment.

Explanation:

Accessory equipment is equipment that is fixed on a place or fixed to other equipment. If the accessory equipment is removed, the original equipment will continue to function as it did before.They must be depreciated since they cannot be expensed.

In this case, the fax machines work along side the telephones of Sumitomo bank and if removed, the telephones would still work. The IRS classifies fax machines as part of office furniture, fixture and equipment, and establishes a 7 year depreciation period.

7 0
3 years ago
How is depreciation accounted for if disposal of a plant asset occurs during the year? A : It is not recorded for the year. B :
Brrunno [24]

Answer:

C : It is recorded for the fraction of the year to the date of the disposal.

Explanation:

Depreciation is the expense charged for providing against benefits arising through the assets. When any assets are to be sold, then depreciation is to be provided against the time period it is used as the benefit have been received for such.

Therefore, even in case of sales of the asset, the depreciation is provided for the period, it is in the books, and held in hand.

Therefore, the correct statement is:

Statement C

8 0
3 years ago
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