The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.
Explanation:
The given is,
Simple interest of 4.5 %
Earn $90 of interest for 8 months
Step:1
Formula to calculate the simple interest method,
...................................(1)
Where,
F - Future amount
P - Initial investment
i - Rate of interest
N - Number of years
From given,
i - 4.5%
Let, X - Initial investment, P = X
F = P + Interest amount
F = X + 90
From the equation (1),
(∵ N = 8 months = 
= 0.667 year )
= 3000
P = X = $ 3000
From the X value.
F = P + 90
= 3000 + 90
F = $ 3090
Result:
The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.
Answer:
d. Firms that have to deal with the possibility of price wars often have sticky prices.
Explanation:
Prices are one of the key factors for the demand and supply in any economy.
If the prices are favorable to producers, it is benefit to them, and then they supply a high quantity, whereas the demand decreases.
When a firm tends to believe to have some price wars, basically not the price the supplier wants, or the industry is against the price determined by the supplier then, the firm chooses to use stick price. That the price do not fluctuate, and gets fixed with as the firm is not ready to supply below a certain level of price.
Answer:
The journal entry is as follows:
Cash A/c Dr. $1,176
Sales returns and allowances A/c Dr. $600
Sales discounts A/c Dr. $24
To accounts receivable $1,800
(To record the receipt of the check)
Workings:
Sales discount = 2% of ($1,800 - $600)
= 0.02 × $1,200
= $24
Answer:
(a) The federal fund rate is the rate at which banks borrows funds from the other banks. So, the federal fund rate in this situation is 0.25%. This is normally applicable for the creditworthy organizations. It is set by the federal open market control. Open market operations is used by the federal bank to control the money supply in an economy and to set the federal fund rate.
(b) The discount is the rate at which banks borrows form the federal reserves account. In the current scenario, the discount rate is 1.15%. It is generally higher than the federal funds rate.
During the 1960s,US. firms created just over <u>65%</u> of worldwide foreign direct investment and British firms were second accounting for just over 10 percent.
<h3>What is meant by foreign direct investment?</h3>
Foreign direct investment (FDI) is known to be a type oof cross-border form of investment.
Note that it it one where an investor that is known to resident in one economy set up a lasting interest in and a vital extent of influence over a firm that is found in another economy.
Therefore, note that during the 1960s,US. firms created just over <u>65%</u> of worldwide foreign direct investment and British firms were second accounting for just over 10 percent.
Learn more about foreign direct investment from
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