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3 years ago

Difference between hire purchase and credit sales

1 answer:

5 0

Answer: A hire purchase is a system by which one pays for a thing in regular instalmentsinstallments while having the use of it.

A credit sale is a purchases made by customers for which payment is delayed.

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You can insure a $42,000 diamond for its total value by paying a premium of D dollars. If the probability of loss in a given yea

ella [17]

Answer:

$E(X) =\sum_{i=1}^n X_i P(X_i)$

Replacing the values that we have:

$1 = 0.98*a + 0.02(a-42) = 0.98a +0.02a -0.84$

And solving for a we got:

$1.84 = a$

So then the premium value for the insurance on this case should be 1840 dollars.

Explanation:

For this case we can define the random variable X as the gain ( in thousand of dollars) of insurance company

We assume that the premium clase charge and amount of a to the company and we know from the info given that:

$p(X=a) = 1-0.02 = 0.98$

$p(X = a-42) = 0.02$

$E(X) = 1$ represent the expected gain in thousand of dollars

The expected value of a random variable X is the n-th moment about zero of a probability density function f(x) if X is continuous, or the weighted average for a discrete probability distribution, if X is discrete.

And using the definition for a discrete random variable we know that :

$E(X) =\sum_{i=1}^n X_i P(X_i)$

Replacing the values that we have:

$1 = 0.98*a + 0.02(a-42) = 0.98a +0.02a -0.84$

And solving for a we got:

$1.84 = a$

So then the premium value for the insurance on this case should be 1840 dollars.

5 0

3 years ago

Carson Company purchased a depreciable asset for $560,000. The estimated salvage value is $28,000, and the estimated useful life

LenaWriter [7]

Answer:

$79,800

Explanation:

Depreciation expense using the activity method = (actual hours of use in a given period / total estimated hours of use ) × ( Cost of asset - Salvage value)

(1500/10,000) × ($560,000 - $28,000) = $79,800

I hope my answer helps you.

5 0

3 years ago

The increase in unemployment that occurs during recessions and depressions is called Group of answer choices normal unemployment

belka [17]

Answer:

cyclical unemployment.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Cyclical unemployment rate (CU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Natural Rate of Unemployment (NU).

A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

Mathematically, cyclical unemployment rate can be calculated using the formula;

$Cyclical \; unemployment \; rate \; (CU) = Actual \; unemployment \; rate \; (AU) - Natural \;unemployment \; rate \; (NU)$

Hence, the increase in unemployment that occurs during recessions and depressions is called cyclical unemployment

7 0

3 years ago

Thornton Industries began construction of a warehouse on July 1, 2016. The project was completed on March 31, 2017. No new loans

igomit [66]

Answer:

THORNTON INDUSTRIES

AMOUNT OF INTEREST TO BE CAPITALIZED FOR THE YEAR ENDED DECEMBER 31, 2016 AND 2017

2016

July 1 - Dec 31 $400,000 *4.8%*6/12 = $9,600

Sep 30 - Dec 31 $600,000*4.8%*3/12 = $7,200

Nov 30 - Dec 31 $600,000*4.8%*1/12 = $2,400

Total Interest for 2016  $19,200

2017

Jan 1 - Dec 31 $1,600,000*4.8% = $76,800

Jan 30 - Dec 31 $540,000*4.8%*11/12 = 23,760

Total interest for the year 2017 $100,560

weightred average cost of capital =

$2,000,000*8% + $8,000,000*4%

$2,000,000 + $8,000,000

= 160,000 + 320,000

10,000,0000

=$480,000 / 10,000,000 = 0.048 = 4.8%

Explanation:

Interest to be capitalized on construction expenditure will be interest on the amount borrowed to finance such construction. the interest will be from commencement of the construction to the cessation period

6 0

3 years ago

The company Andorinha Ltda. presented on 03/15/01 the total amount of R$1,500.00 in the account of Duplicates Payable; soon, on

DerKrebs [107]

Answer:

a) Credit Balance R$1,000.00

Explanation:

The Duplicates Payable represents a Liability in Andorinha Ltd records.

When Andorinha Ltda paid a cash duplicate in the amount of R$500.000 the entries recorded will be :

Trade Payable-Duplicates R$500.000 (debit)

Cash R$500.000 (credit)

Effect on Balance of Duplicates Payable

Decrease in Duplicates Payable by $500,000

Remaining Balance is $100,000 (credit)

8 0

3 years ago