Ask question

Ask question

All categories

3 years ago

7

Franklin has $2,500 in a savings account that pays interest at the rate of 4% annually. how much interest will he earn after one

year?

1 answer:

prohojiy [21]3 years ago

7 0

Interest earned=2,500×0.04=100

You might be interested in

Moerdyk Corporation’s bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra

azamat

Answer:

The price of the bonds is $ 1,276.

Explanation:

The value of bond or issue price can be calculated by discounting all future cash flow using effective rate of retun. Detail calculations are given below.

Future Value = Redemption present value (RPV) + Present value of interest (PVI)

RPV = 1,000 (1+5%)^-15 = $ 481 -A

PVI = 36.25 * Annuity factor =$ 759 -B

Future Value = A + B = $ 1,276

Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

7 0

3 years ago

A home store chain is prepared to buy 3,800 of your Frog & Friends(TM) shower curtains per month for $5 each, but only 3,500

neonofarm [45]

Answer:

The linear demand function for Frog & Friends Shower curtains is q = -60p + 4,100

Explanation: $5 each ===> 3,800 curtains per month

$10 each ===> 3,500 curtains per month.

===> slope of the demand line is (3800-3500)/(5-10) = 300/-5 = -60

===> demand function is q = -60p + c for some constant c.

Let 3,800 = -60*5 + c.

=3800 = -300 + c

===> c = 4,100.

Therefore the linear demand function for frog & friends curtains is q = -60p + 4,100

5 0

3 years ago

Tyrone is reviewing customer response forms and learns that while some people like the company's new outerwear designs, the majo

Vsevolod [243]

Answer:

Feedback

Explanation:

Feedback is the response you get from the customers.

4 0

3 years ago

Since its organization in January of 2016, Mars Corp began with the issuance of 15,000 shares of $5 par, cumulative, 8% preferre

igomit [66]

Answer:

D) 3 years' worth of dividends will be paid to preferred shareholders prior to paying anything to common shareholders.

Explanation:

Shareholders are the individuals or institutions that hold the stock of a company making the owners of the business. Shareholders can either be common shareholders or preferred shareholders. Common shareholders are more prevalent and have voting rights in matters concerning the company.

Preferred shareholders hold preferred stock. They are rare and have no voting rights in the way the organization is managed. Preferred shareholders are entitled to a fixed amount of dividend every year. Dividends to preferred shareholders have to be paid first before common shareholders are paid out. Usually, common stockholders will be last to paid last in the event of dividends payouts or in times of liquidation.

3 0

3 years ago

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 11% bonds having a face amount of $9

kompoz [17]

Answer:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

To Cash $93,024,000 ($91.2 million × 102%)

To Discount $4,200,000

(Being the redemption of the bond is recorded)

Explanation:

The journal entry is shown below:

Bonds Payable $91,200,000

Loss on early extinguishment $6,024,000

To Cash $93,024,000 ($91.2 million × 102%)

To Discount $4,200,000

(Being the redemption of the bond is recorded)

For recording this journal entry we debited the bond payable as it decrease the liability moreover the cash is also decreased so it is credited and the discount is also credited and the remaining balance is debited to the loss

4 0

3 years ago