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3 years ago

What factors affect the time value of money and the cost of borrowing money?

1 answer:

5 0

1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing

2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.

3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.

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38) A lottery ticket states that you will receive $250 every year for the next ten years. a. What is the present value of the wi

Stells [14]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A lottery ticket states that you will receive $250 every year for the next ten years.

A) i=0.06 ordinary annuity

PV= FV/(1+i)^n

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {250*[(1.06^10)-1]}/0.06= $3,295.20

PV= 3,295.20/1.06^10=1,840.02

B) i=0.06 annuity due (beginning of the year)

FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91

PV= 3492.91/1.06^10= $1,950.42

C) The interest gets compounded for one more period in an annuity due.

5 0

3 years ago

"Quill Industries uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the agi

vlabodo [156]

Answer:

$23,300

Explanation:

Bad debt Expense will be calculated using the account receivable method. The expense is calculated using the account receivable aging analysis.

Closing Value of the Allowance for Doubtful Accounts will be as follow

As Allowance for Doubtful Accounts already have Credit balance of $12,200, we need to adjust the remainder to make the closing credit balance of Allowance for Doubtful Accounts $35,500 at the year end.

Adjustment Value = $35,500 + $12,200 = $23,300

This Expense will be recorded as follow

Dr. Bad Debt Expense $23,300

Cr. Allowance for Doubtful Accounts $23,300

3 0

2 years ago

Find the EAR in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded

inna [77]

EAR = (1 + periodic interest rate)^N - 1

9.25 % Quarterly %

EAR = $(1+\frac{0.0925}{4})^{4} - 1$ = 0.09575 or 9.58%

16.75 Monthly %

EAR = $(1+\frac{0.1675}{12})^{12} - 1$ = 0.1809766 or 18.10%

15.25 Daily %

EAR = $(1+\frac{0.1525}{365})^{365} - 1$ = 0.1647053 or 16.47%

11.25 Semiannually %

EAR = $(1+\frac{0.1125}{2})^{2} - 1$ = 0.115664 or 11.57%

4 0

3 years ago

In king's view, what three qualities must a movement have in order to achieve the goal of integration?

Novay_Z [31]

Answer:

Martin Luther King Jr. believed that in order for an integration movement to be successful, it had to be:

organized in a militant manner: members must be vigorously active supporting the cause
the movement must have a mass character: must include everyone, not just some selected individuals
the movement must reject (repudiate) violence

If a movement doesn't embrace peace, then it will generate conflict and violence. If the members are passive, there ideals will not be noticed. If the movement does not include everyone, then it will create more segregation.

3 0

3 years ago

Aggregate supply (as) denotes, while holding the price of inputs fixed, the ________ that firms choose to produce and ________.

Sedbober [7]

Aggregate supply (as) denotes, while holding the price of inputs fixed, the price level of output that firms choose to produce and GDP.

<h3>What is aggregate supply?</h3>

Aggregate supply is when goods and service produced or manufacture are made available to buyers or can be defined as the amount of goods produce and supply to the market at particular period of time.

Aggregate supply can tend to increase in a situation were the price of goods and services decrease or when the price of product fall.

Therefore, Aggregate supply donate, while holding the price of inputs fixed, the price level of output that firms choose to produce and Gross domestic product (GDP).

Learn more about Aggregate supply here:brainly.com/question/11889136

brainly.com/question/25749867

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6 0

1 year ago