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Angelina_Jolie [31]

3 years ago

15

Suppose annual inflation rates in the u.s. and mexico are expected to be 6% and 80%, respectively, over the next several years.

if the current spot rate for the mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is

1 answer:

jeka943 years ago

7 0

<span>The answer is $.00102</span>

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When Patey Pontoons issued 6% bonds on January 1, 2018, with a face amount of $600,000, the market yield for bonds of similar ri

Sliva [168]

Answer:

<u>1.- issued at : </u>$579,378

<u></u>

<u>2.- the schedule is attached.</u>

<u></u>

<u>3 and 4.- journal entries</u>

cash 579,378 debit

discount on bonds payable 20,622 debit

bonds payabe 600,000 credit

--to record issuance-------

interest expense 20278.23 debit

discount on bonds payable 2278.23 credit

cash 18000 credit

--to record June 30th payment---

<u>5.-At December 31th 2018 will report as follow:</u>

bonds payable 600,000

discount on bonds (15,986)

net 584,014

<u>6.- it will report interest expense for:</u>

20,278.23 June

20,357.97 December

total: 40.636,2‬

7.- maturity:

interest expense 20,898.55

discount on bonds payable 2,898.55

cash 618,000

Explanation:

For the value of the bonds at issuance, we will calcualtethe present value of the coupon payment and the maturity at market rate.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 18,000 ( 600,000 x 0.06/2)

time 8 (4 years x 2 payment per year

rate 0.035(market rate / 2)

$18000 \times \frac{1-(1+0.035)^{-8} }{0.035} = PV\\$

PV $123,731.1997

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 600,000.00

time 8.00

rate 0.035

$\frac{600000}{(1 + 0.035)^{8} } = PV$

PV 455,646.93

PV c $123,731.1997

PV m $455,646.9337

Total $579,378.1334

for the schedule we will multuply the carrying value by the market rate.

the ncompare with the proceed in cash to know the amortizaiton.

This amortization will increase the carrying value of the loan.

5 0

3 years ago

Which type of decision maker tends to choose the first available option in haste?

Vera_Pavlovna [14]

The type of decision maker that tends to choose the first available option in haste is an impulsive decision maker. It is because this is where the decision maker tends to act in a way that is based on their instinct and that they don’t consider other options because they act immediately without having to think about the decision that they are making.

4 0

3 years ago

Read 2 more answers

On October 1, 2009, the Nintendo Wii's Japanese price dropped from ¥25,000 to ¥20,000. In the three months after the price drop,

kykrilka [37]

Answer:

B) 0.7; inelastic

Explanation:

The computation of the absolute value of the price elasticity of demand is shown below:

Elasticity is

= [(Sales - prior sales) ÷ ( Sales + prior sales) ÷ 2] ÷ [(price - dropped price) ÷ (price - dropped price) ÷ 2

= [(1,040,000 - 890,000) ÷ (1,040,000 + 890,000) ÷ 2] ÷ [(25,000 - 20,000) ÷ (25,000 + 20,000) ÷ 2]

= (150,000 ÷ 965,000) ÷ (5,000 ÷ 22,500)

= 0.15 ÷ 0.22

= 0.7

It is less than one so the demand is inelastic

4 0

3 years ago

If g = $800 billion, tax receipts = $850 billion, and there is an inflationary gap of $100 billion, there is?

vagabundo [1.1K]

If g = $800 billion, tax receipts = $850 billion, and there is an inflationary gap of $100 billion, there is a budget surplus.

Taxes are mandatory contributions levied on people or businesses by means of a government entity—whether or not nearby, local, or country-wide. Tax revenues finance authorities' sports, including public works and offerings consisting of roads and colleges, or programs which include Social Protection and Medicare.

The principal purpose of taxation is to elevate sales for the services and profits that help the network's desires. Public revenues ought to be good enough for that motive. 2. Tax should, as far as viable, be levied equitably, consistent with the potential to pay.

Learn more about Tax here: brainly.com/question/25783927

#SPJ4

6 0

1 year ago

Sandy earned a salary of $50,000 last year. Her parents gave her a car valued at $23,000 for her birthday. In addition, she earn

IgorLugansk [536]

Answer:

$51,200

Explanation:

Gross income computation includes all forms of income such as wages, rents, royalties, dividend etc. However, gifts and inheritances are not considered as a part of the gross income.

Therefore, Sandy's gross income consist of her salary, and the interest income

Sandy's Gross income = 50000 + 1200

= $51,200

The inheritance of her grandmother's estate and car gift are not included as a part of Sandy's gross income.

5 0

3 years ago