$25968406.94.
a. Computation of Effective Interest Rate
Future Value = Present Value * (1 + r)^n
Future Value = $1460000
Present Value = $105
n = Number of Years = 116 Years
Future Value = Present Value * (1 + r)^n
1460000 = 105 * (1 + r)^116
13904.76 = (1 + r)^116
1.0857 = 1 + r
Effective Interest Rate = 8.57%
b.Future Value in the year 2050
Future Value = Present Value * (1 + r)^n
Present Value = $1460000
n = Number of Years = 35 Years
Future Value = Present Value * (1 + r)^n
Future Value = 1460000 * (1 + 0.0857)^35
Future Value = 1460000 * 17.7866
Future Value in the year 2050= $25968406.94.
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Answer: d. Uncle John's
Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.
When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.
In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)
Answer: Pay fixed rate while receiving floating rate.
Explanation:
According to the given question, If the second national bank contain more rate of liabilities as compared to the rate of asset in any organization then it basically reducing the risk of the interest rate by using the technique swapping with paying some fixed amount of rate at the time of receiving the floating rate.
The process of fixed to floating swap is one of the contractual process between any two types of companies or members so that they can swap their cash flow system.
Therefore, The given answer is correct.
Answer:
C) Atlanta Company
Explanation:
Let's bear in mind that equity is an advantage that allows your company to buy and sell more.
So more equity means more ability to buy and sell and less the possibility of going bankrupt.
Liability on the other hand also gives advantage in trade r company , so more liability shows strongness of the company.
Now let's compare the equity and liability of the both companies
Atlanta Company
Total liabilities $ 429,000
Total equity 572,000
Spokane Company
Total liabilities $ 549,000
Total equity 1,830,000
The equity ratio is about 1:3
While liability is about 1:1.2
So Atlanta company has more riskier structure
It’s B or D i would think but I can’t be for positive.. sorry if it’s wrong
