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saw5 [17]
3 years ago
7

What is the main purpose of the FDIC?

Business
2 answers:
Anna11 [10]3 years ago
6 0

Answer: To insure bank deposits

Explanation:

This is a body established by law and charged with the responsibility of providing insurance cover for depositors fund saved in the commercial banks and other financial institutions in the country. It is a body set up with the aims of ensuring that depositors can sleep with their two eyes closed without having to entertain any fear about the safety of their hard earned money which they had saved in the banks.

One of the main functions of commercial banks is to accept deposit from their customers and assist them in keeping the money. Therefore, there may be occasioned whereby banks may go into liquidation or been in a state of distress either due to the mismanagement of the banks by the board of directors of the banks or due to all other factors. FDIC is there to ensure that depositors do not lose all their hard earned money due to the liquidation of the banks concerned in the country by ensuring that they are paid their money.

viva [34]3 years ago
4 0

Answer:

To insure bank deposits.

Explanation:

After the great depression the FDIC was created to insurance bank deposits and to give  stability and security to the financial system

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Consider a mutual fund with $300 million in assets at the start of the year and 10 million shares outstanding. The fund invests
djyliett [7]

Answer: Start = $300 million

End = $318.59 million

Explanation:

NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.

At start of the year NAV is $300 million and NAV per share is therefore,

= 300 million/ 10 million

= $30 per share.

Ending NAV

During the year the fund made Investments and increased by a price of 7%

= 300 million (1 + 0.07)

= $321 million

We still have to subtract the 12b-1 fees that the fund charges though and that would result in,

= 321 million * (1 - 0.0075)

= 318.5925

= $318.59 million.

Dividing this by the total number of outstanding shares we have,

= 318.59 /10

= $31.86

$31.86 is the NAV per share at year end.

5 0
3 years ago
On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735
Mnenie [13.5K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Interest paid semiannually on July 31, and Jan 31,

so the rate of interest is :- 9% × 6÷12 = 4.5%  and  8% × 6÷12 = 4%

Date    Interest         Paid interest 4%         Amortized         Carrying value

       expenses 4.50%                             discount amount

February,1                                                    $735,474

July,31 $33,096   -   $32,400                    $696            $736,170

Jan.31      $33,128   -   $32,400                    $728            $736,898

Working note =

Paid interest = $810,000 × 4÷100 = 32,400

Interest expenses in July,31 = $735,474 × 4.5 ÷ 100

= 33,096.33 or $33,096

Interest expenses in January,31 = $736,170 × 4.5÷100

= 33,127.65 or $33,128

Carrying Value = Previous Carrying Value + Amortized Discount Amount

July,31

= $735,474 + $696

= $736,170

Jan,31 =  $736,170 + $728 = $736,898

Journal Entry

Feb,1  Cash A/c Dr. $735,474

  Discount on bonds payable A/c Dr. $74,526

  To bonds payable A/c      $810,000

         (To Record the issuance of bond)

July,31 Interest expense A/c Dr. $33,096

     To Discount on bonds payable A/c  $696

     To Cash A/c $32,400

            (To Record the interest expense)

Dec,31  Interest expense A/c Dr. $27,606

      (9% × 5÷12) × $736,170

     To Discount on bonds payable A/c $606

     To Cash A/c $27,000    (8% × 5÷12) × $810,000  

           (To Record the accrued interest)

Jan,31  Interest expense A/c Dr. $5,522

    Interest payable A/c Dr. $27,000

    To Cash A/c $32,400

    To Discount on bonds payable A/c $122

 ($728 - $606) = $122

          (To Record the interest on January)

8 0
3 years ago
What is the current value of a future sum of money called?
Dennis_Churaev [7]

<span>Present value is the current value of a future sum of money. Present value of money is used to compute the time value of money. It is also known as ‘present discounted value’ or ‘discounted value.’ It is the worth of money now to be paid in series of payments at a certain interest rate to arrive at the future value.</span>

6 0
3 years ago
Galvanized Products is considering purchasing a new computer system for their enterprise data management system. The vendor has
alekssr [168]

Answer:

The present worth of this investment = -$31,204.78

Explanation:

Note: See the attached excel file for the calculation of the present worth of this investment (in bold red color).

In the attached excel file, the following are used:

Loan from bank = Purchase price * (1 / 4) = $130,000 * (1 / 4) = $32,500

Initial cost = Purchase price - Loan from bank = $130,000 - $32,500 = $97,500

The annual required equal loan payments is calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1 + r)^n) - 1) .................................... (1)

Where,

P = Annual required equal loan payment = ?

A = Loan amount from bank = $32,500

r = interest rate = 12%, or 0.12

n = number of payment years = 3

Substituting all the figures into equation (1), we have:

P = Annual required equal loan payment = ($32,500 * (0.12 * (1 + 0.12)^3)) / (((1 + 0.12)^3) - 1) = $13,531.34

From the attached excl file, the present worth of this investment is equal to -$31,204.78

Download xlsx
3 0
3 years ago
A state charges a 7% sales tax on non-grocery items.
zvonat [6]

Answer:

$8.75

Explanation:

The sales tax is on non-grocery  is 7%

Sales tax on an item costing $125 will be

=7% of $125

=7/100 x $125

=0.07 x $125

=$8.75

7 0
3 years ago
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