Answer:
Option E, PURE DISCOUNT.
Explanation:
There are different types of loan, some are; principal only loan, interest only loan, amortized loan, compound loan, pure discount loan...
A pure discount loan is a loan in which the borrower receives money today and repays a single lump at some time in future. It is the simplest form of loan.
Practically, it means the borrower will not pay any interest over the years; instead the interest is earned when the loan is paid back at maturity.
For example, imagine you wanted to borrow $20,000 and pay back twelve months later. The interest and charges came to $2,000, you would receive $18,000 from the lender. But, you would still have to pay back the whole $20,000.
Therefore, since Cindy will be paying a lump sum equal to the cash amount she received today, it means that the lender already calculated the interest and other related charges and then discounted it from the face amount thereby making it equal at the point of repayment. The option that best suits the question is E, the type of loan PURE DISCOUNT.
Answer:
The GDP includes the value of all the final goods and services produced in a country, while the GNI includes the value of all the final goods and services produced by the citizens of a country, regardless of where they are located.
Angola's GDP is higher than its GNI because many foreign companies must produce oil, and that increases GDP but is not included in the GNI).
Answer:
$362,000
Explanation:
The market value of the building is an opportunity cost that is avoidable.
Ramos would avoid the real estate taxes if it sold the building.
Therefore,
Amount of avoidable cost associated with the segment:
= Annual advertising expense + Market value of the building (opportunity cost) + Annual maintenance costs on equipment + Annual real estate taxes on the building + Annual supervisory salaries
= $ 70,000 + $80,000 + $56,000 + $6,000 + $150,000
= $362,000
Answer:
$33,200= ending inventory
Explanation:
Giving the following information:
Andrew Industries purchased $166,000 of raw materials.
The beginning Raw Materials Inventory balance was $22,200, and the materials used to complete jobs during the month were $141,900 of direct materials and $13,100 of indirect materials.
To calculate the ending inventory, we need to use the following formula:
Raw materials used= beginning inventory + purchases - ending inventory
141,900 + 13,100= 22,200 + 166,000 - ending inventory
155,100= 188,000 - ending inventory
33,200= ending inventory
Spend less than you have earned, save and plan
