Answer:
Sam will pay $937.43 weekly or $71.64 quarterly.
The weekly plan has less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $117.18 if the loan calls for quarterly payments.
Explanation:
The cash outflows are calculated using the PMT formula or function as follows.
Quarterly Payment:
PMT(rate = 0.08/4, nper = 8x4, pv = 22000, fv = 0, 0) = $937.43
Weekly Payment:
PMT(rate = 0.08/52, nper = 8x52, pv = 22000, fv = 0, 0) = $71.64
Annual cash outflow using quarterly payment = $937.43 x 4 = $3749.72
Annual cash outflow using weekly payment = $71.64 x 52 = $3725.28
The weekly plan has $3749.72 - $3725.38 = $24.44 less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $3749.72 / 32 = $117.18 if the loan calls for quarterly payments.
Answer:
common stock = $80,308
Explanation:
assets = liabilities + equity
current balance:
$260,881 = $150,673 + $110,208
$110,208 = common stock + retained earnings = $57,508 + $52,700
next year:
net income = $44,200
dividends = $12,000
assets = $260,881 + $55,000 = $315,881
liabilities = $150,673
equity = $315,881 - $150,673 = $165,208
retained earnings = $52,700 + $44,200 - $12,000 = $84,900
common stock = $165,208 - $84,900 = $80,308
Answer:
Dr. Cr.
February 2, 2012
Inventory $30,000
Account Payable $30,000
February 10, 2012
Account Payable $30,000
Discount received $600
Cash $29,400
Explanation:
Term 2/10, n/30 means there is a cash settlement discount of 2% is available if the payment is made within 10 days after the purchase of goods. Net credit period is 30 days. Purchases were made on February 2 and Payment was made on February 10 within the discount period, so Shankar Company is entitled to claim the discount of 2%. Cash will be paid net of discount.
Discount = $30,000 x 2% = $600
Cash Payment = $30,000 - $600 = $29,400
Answer:
Equals the foreign exchange rate minus the inflation rate.
Explanation:
Nominal rate of interest refers to the interest rate which does not account for rate of inflation.
It is expressed as
Nominal interest rate = Real interest rate + rate of inflation
Real interest rate is considered to be a better measure since it is adjusted for rate of inflation.
Foreign exchange rate refers to exchange rate between two currencies which is based upon inflation and interest rates prevailing in the respective countries.
Because saudi arabia and australia have <u>absolute advantage</u>, saudi arabia can specialize in the production of crude oil and petroleum products, and australia can specialize in the production of wool
<h3>What is government?</h3>
Government can be defined as a group of people with the authority to govern a country.
So therefore, because saudi arabia and australia have absolute advantage, saudi arabia can specialize in the production of crude oil and petroleum products, and australia can specialize in the production of wool
Learn more about government:
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