Answer:
the interest rate is missing, so I looked for similar questions and found that the semiannual interest rate is 3%.
first of all, we must determine the amount of money that we need to have in our account in order to be able to withdraw $25,000 in 10 years.
You will start making your semiannual deposits today and they will end in exactly 2 years, so we need to find out the present value of the $25,000 in two years:
PV = $25,000 / (1 + 3%)¹⁶ = $15,579.17
that is now the future value of our annuity due:
FV = semiannual deposit x FV annuity due factor (3%, 5 periods)
$15,579.17 = semiannual deposit x 5.46841
semiannual deposit = $15,579.17 / 5.46841 = $2,848.94
Answer:
A personal meeting
Voice mail
Explanation:
Though various means of reaching through to individuals differ, however, depending on the gravity or severity of the information to be communicated, you be might be forced to make a somewhat crude means of communication. However, when informations require the passage of specific illustrations and also to show how important the information that is about to be passed on his.organizing a personal meeting might be more satisfactory. However, in many instances, do stance posses a barrier and another means of communication whereby distance doesn't pose a threat may need to be adopted . This include text messages. Emails
voice mails and so on.
Answer:
The answer is: All the options are correct (I, II and III)
Explanation:
The larger the number of individuals (e.g. securities analysts, investors) who are informed about the price system of securities, the prices of securities will approach informational efficiency.
When the system approaches informational efficiency, you can determine which securities are riskier than others. Therefore you can price riskier securities so that they offer higher expected returns.
The other positive effect of informational efficacy is that investors can determine which securities are undervalued or overvalued.
Answer:
loanable amount after Fed operation = $950 M
Securities after fed operation = $50 M
attached below is the T-account table
Explanation:
Given data:
For assets : securities = $100 M , Loans = $800 M
For Liabilities : Constant demand deposit = $1000 M
difference between the assets and liability = $100 M and this makes the Banking system unbalanced hence the Banking system needs the intervention of the Fed. and the reduction in the required reserve ratio from 10% to 5% is the right action
How with the reserve ratio reduced to: 0.05
hence required Minimum required securities after operation = 0.05 * 1000 M = 50 M
Note : Total demand deposits = securities + loanable amount
therefore loanable amount after Fed operation = $1000 M - $50 M = $950
Attached below is the T-table
When both tables are compared it can be seen that there is a significant increase in the loanable amount after the Fed's operations and increase in Loanable amount transcends to increase in Monetary base
Answer:
Journal Entry
Date Account Titles and Explanation Debit Credit
Jan 1 Cash $511,875
Bond payable $450,000
Premium on bond payable $61,875
($450,000*13.75%)
(To record issue of bonds at premium)
