1000 x 5 x 3= $15000/100 = $150 in simple interest
Assuming the interest rate on the note is 5% per year, the amount of the loan is $2,000.
<h3>Loan amount</h3>
Using this formula
Loan amount=Annual interest/Interest rate on the note
Where:
Annual interest=$100
Interest rate on the note=5% or 0.05
Let plug in the formula
Loan amount=$100/0.05
Loan amount=$2,000
Inconclusion assuming the interest rate on the note is 5% per year, the amount of the loan is $2,000.
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Answer:
The journal entry for the sale of the shares is as:
Explanation:
Cash A/c.......................Dr $4,000
Treasury Stock A/c......Cr $4,000
As there is sale of stock, so the corporation is receiving the cash and any increase in the asset is debited. Therefore, the cash account is debited. And the stock is going out of the business, then decrease in stock is credited. Therefore, the treasury stock account is credited.
Working Note:
Cash = Number of Shares × Price per share
= 1,000 × $4
= $4,000
Answer:
d. the interest rate will fall.
Explanation:
If the number of people that save money is more than the number of people that demand for investment, then production rate will reduce, and if investment demand is more than savings, production will increase. And if there is an increase in interest rate, consumption rate will fall because spending on consumption will be more expensive and consumer will prefer to save for higher interest rate.
Therefore in situations where there is an increase in saving and the interest rate does not affect the consumption rate, there will be a fall in the interest rate.
One common advantage of long term investment is higher return.
The longer you stay on an investment the bigger possibility to earn bigger interest and return. You might sometimes experiences losing but still you have the chance to get back what you loss over the time.