To calculate the maturity of this note,
we use a simple formula first to get the interest which is:
I = Principal (amount owed) X Interest Rate (%) X Time (length of loan)
The days is only divided by only 360 days instead of 365 days. This is because commercial loans often use 360-day calendar years instead of 365-day calendar years. But not all banks used this as their calendar year,
I = Prt
= ($80000) (0.05) (120/360)
= ($80000) (0.01666666666)
I = $ 1,333.33
To get the maturity value, the formula is: M = Interest + Principal
M = I + P
= $1,333.33 + $80,000
= $81,333.33 or $81,333, letter C
Answer and Explanation:
The journal entry to record the given transaction is as follows
Retained earning Dr (0.30 million × $54) $16.2 million
To Common stock (0.30 million × $1) $0.3 million
To Additional paid in capital in excess of par (0.30 million × $53) $15.9 million
(Being the stock dividend is declared)
The computation of the shares after declaring the dividend is
= 30 million × 1%
= 0.30 million
Answer:
Savings and loan association
Explanation:
Since, Helmert Federal, acquires its funds primarily from the deposits of its customers, and then uses these funds to make mortgage loans for individuals interested in purchasing real estate properties.Therefore we can say that
Helmert Federal is a Savings and loan association
Answer:
The loanable funds supply curve (S1) will not shift.
Explanation:
When the interest rates change, it is similar to a change in the price of a good. In this case the good is money and the interest rate is its price. A change in the price of a good will result in a change of the quantity supplied along the supply curve, but it will not shift the entire curve, therefore the curve S1 remains the same.
Answer:
The correct answer is letter "C": produces products that are considered elastic.
Explanation:
Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.
Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.
