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olga nikolaevna [1]
3 years ago
14

The U.S. Treasury offers to sell you a bond for $715.00. No payments will be made until the bond matures 15 years from now, at w

hich time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
Business
1 answer:
nalin [4]3 years ago
7 0

Answer:

interest rate is 2.25 %

Explanation:

given data

sell bond = $715

bond matures =  15 years

redeem =  $1,000

solution

we apply here formula that is

amount = principal × (1+r)^{t}    ................1

here put value and we get

1000 = 715  × (1+r)^{15}

(1+r)^{15} = \frac{1000}{715}

solve it we get

r = 0.022617

so rate is 2.25 %

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Ralph, a cash basis taxpayer, owns an office building that he leases to various tenants. During 20X8, he signed a three-year lea
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Answer:

b. $5,600

Explanation:

A cash basis taxpayer will report revenues and expenses when they are actually collected or paid for. The business transaction is not directly related to the moment that the payment occurs (unlike accrual accounting).

in this case, Ralph should report all the income related to monthly rental payments = $5,000 (Nov. 2008 - Oct. 2008) + $600 (the three last months of rent) = $5,600. Security deposits are not considered rental revenue, so they should not be reported as such.

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4 years ago
The _____ exercise ADCON through their respective Service Chiefs over the Service
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Answer:

"Combatant Commanders" is the correct answer.

Explanation:

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8 0
3 years ago
Prepaid Insurance $ 3,600 Supplies 3,500 Equipment 18,750 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 21,000 Unearn
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Answer:

1. Depreciation expense 3600

          Accumulated depreciation 3600

2.Unearned rent  330666

                 Rental income 330666

3. Interest expense     2100

               Interest payable               2100

4.Cost of goods manufactured 2640

           Supplies                                2640

5. Insurance expense 2400

              Prepaid insurance  2400

Explanation:

depreciation for the year = 300*12=3600

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3.Interest expense for the year = 525*4=2100

4.opening supplies were 3500 and ending were 860 so (3500-860)=2640 were consumed and 860 will be reported to balance sheet.

5. Opening prepaid insurance was =$3600

Insurance was expense out at the rate of $200 per month = 200*12=$2400

$1200 shall be reported to balance sheet.

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