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shepuryov [24]
2 years ago
5

Mia has an investment that is worth $12,000 after 4 years. If the initial investment was $8,000, what is the annual simple inter

est rate?
Business
1 answer:
Alexus [3.1K]2 years ago
6 0

Answer: 12.5 %

Explanation:

Hi, to answer this question we have to apply the simple interest formula:  

I = p x r x t  

Where:  

I = interest (investment after interests - principal; 12000-8000=4000)

P = Principal Amount (initial invest)  

r = Interest Rate (decimal form)  

t= time  

Replacing with the values given  

4,000= 8,000 (x) 4

Solving for x :

4,000= 32,000x

4,000/ 32,000 =x

x= 0.125

Since the interest rate is in decimal form, we have to multiply it by 100 to obtain the percentage.

0.125 x 100 = 12.5 %

Feel free to ask for more if needed or if you did not understand something.  

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A business issued a 90-day, 9% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial s
SSSSS [86.1K]

Answer:

The computation is shown below:

Explanation:

The journal entries are shown below:

a. Account payable $70,000

           To Notes payable $70,000

(Being the issuance of the note is recorded)

b. Note payable $70,000

  Interest expense $1,575

              To Cash $71,575

(Being the payment of the note at maturity date including interest is recorded)

The computation is shown below:

= $70,000 × 9% × 90 days ÷ 360 days

= $1,575

We assume 360 days in a year

Now the effects on the accounts and the financing statement for issuance of the note is shown below:

Balance sheet

Assets          =   Liabilities   + Stockholder equity    Income statement  cash flow statement

No effect = Account payable - $52,000 + No effect  No effect + no effect

                   Note payable + $52,000      

7 0
3 years ago
Ace Corporation engaged Kosier, CPA, to perform a consulting engagement. While driving to Ace's office, Kosier was involved in a
Keith_Richards [23]

Answer:

The correct answer is B. Correct! Since Ace is not in control of the actions of Kosier (an independent contractor), Ace would  generally not be responsible for Kosier's torts.

Explanation:

An independent contractor is a person who is hired to do a specific job. It is said that she is her own boss because she controls how and where the work is done.

These people have greater freedom and only undertake to perform the specific function they agreed with the person owning a company. For example, the independent contractor agrees that he will serve clients at a 9 a.m. store. at 1 p.m. or that he will go to the meetings and prepare a report on the subject assigned to him. Outside these specific functions, the independent contractor controls how he manages his time.

5 0
3 years ago
The ________ allows a company to capture the highest economies of scale.
Klio2033 [76]
It is the Continuous Flow Production Process. It is a stream creation strategy used to fabricate, deliver, or process materials without intrusion. Consistent generation is known as a persistent procedure or a nonstop stream process in light of the fact that the materials, either dry mass or liquids that are being prepared are constantly in movement, experiencing synthetic responses or subject to mechanical or warm treatment. Persistent handling is diverged from group generation.
3 0
2 years ago
Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu
quester [9]

Answer:

a. The contribution margin ratio will be 41%

b. The income from operations will be $12,420,000.

Explanation:

a. The sales are given at $112,900,000.

The fixed costs are $25,000,000.

The variable costs are $66,611,000.

The contribution margin will be

=Sales-variable costs

=$(112,900,000-66,611,000)

=$46,289,000

The contribution margin ratio will be

=(Contribution margin/sales)*100

=($46,289,000/ $112,900,000)*100

=41%

b. Now, if the contribution margin ratio is 40%.

The sales are given at $34,800,000.

The fixed costs are $1,500,000.

Income from operations or operating profit will be

=(sales*contribution margin ratio)-fixed cost

=$(34,800,000*0.4)-$1,500,000

=$12,420,000

7 0
3 years ago
Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,
Mashcka [7]

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

7 0
3 years ago
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