Answer:
Effective Annual Rate = 8.1600%
Explanation:
The effective annual rate the interest rate that is adjusted for compounding over a given period of time. It is given by the formula:
Answer:
True
Explanation:
A disclaimer is a statement seeking to define the limits of a party's rights or obligation concerning a legally binding agreement. In a warranty disclaimer, the seller will include a statement that explains conditions or situations in which the warranty will not apply. The seller discharges themselves from any liabilities that the buyer may incur should an incident detailed in the warranty disclaimer arises.
Disclaimer warrants are allowed and legal. No law demands that the seller offer any form of warranty. However, a disclaimer warrant cannot be issued where an implied contract applies. For example, if you buy a fridge, you expect it to keep food items cold. A disclaimer statement in the sale of the fridge stating that the seller will be not responsible if the refrigerator cannot keep things at low temperatures is illegal.
Answer:
The correct answer is A package trust deed.
Explanation:
A trust or trust (from the Latin fideicommissum, in turn from fides, "faith", and commissus, "commission") is a contract under which one or more persons (trustor / trustee / s) transfer assets, amounts of money or rights, present or future, of your property to another person (fiduciary, who may be a natural or legal person) to administer or invest the property for their own benefit or for the benefit of a third party, called beneficiary, and transmit your property, upon compliance with a term or condition, to the trustee, which may be the trustee, the beneficiary or another person.
At the time of the creation of the trust, neither party owns the property object of the trust. The trust is, therefore, a contract whereby a person allocates certain assets for a specific lawful purpose, entrusting the realization of that purpose to a fiduciary institution in all companies.
The assets affected by the trust do not run the commercial risk of the trustee (the one who transfers ownership of the assets) or the trustee (the owner of the trust assets after the expiration of the contract term), since the assets that are the object of the trust It cannot be prosecuted by the creditors of either of them, nor affected by the bankruptcy of both or any of them.
Answer:
Margin of safety=55.6%
Explanation:
The formula for the operating income is as folows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=Answer:
Explanation:
The formula for the operating income is as follows;
operating income=Sales revenue-total cost
where;
operating income=$ 15,000
Sales revenue=S
total cost=variable cost+fixed cost
variable cost=70% of S=(70/100)×S=0.7 S
fixed cost=$12,000
replacing;
15,000=S-(0.7 S+12,000)
15,000+12,000=0.3 S
27,000=0.3 S
S=27,000/0.3
S=$90,000
Current sales=$90,000
The formula for margin of safety is as follows;
Margin of safety=(Current sales level-break even point sales level)/current sales levels
At break even,
Operating income=0
0=S-(0.7 S+12,000)
0=S-0.7 S-12,000
0.3 S=12,000
S=12,000/0.3
S=40,000
Break even sales=$40,000
replacing;
Margin of safety=((90,000-40,000)/90,000}×100
Margin of safety=55.6%
Answer:
$23,520
Explanation:
The computation of book value of the machine is shown below:-
Machine cost $28,000
Less: Depreciation $4,200
($28,000 - $2,800) ÷ 6
Book Value at beginning
of Year 2 $23,800
Add: Improvements $7,000
Total $54,600
Less: Accumulated
Depreciation for 3 years $31,080
($54,600 - $2,800) × 3 ÷ 5 years
Book Value Dec 31, Year 4 $23,520
