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4 years ago

What is the difference between compound and regular interest?

1 answer:

6 0

will calculated by multiplying the principal amount by one plus the annual interest rate raised to the number of compound periods minus one As opposed to simple interest and Interest is the cost of borrowing money and Conversely compound interest
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Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If sean charge

pochemuha

The answer is $7 because Marginal revenue is the change in total revenue from 10 customers ($400) to 11 customers ($407) How a monopolist maximizes profits

How does a monopolist determine its profit-maximizing level of output How does it determine the price that it charges?

The monopolist will select the profit-maximizing level of output where

MR = MC

and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

How a monopolist maximizes profits

 Because Chuck, a sole commercial airplane operator in small isolated town, has no competition, he has complete control of market price of air travel in his small tone

 Reduced price → increase in ticket sales

 Monopoly maximizes profit by choosing an amount of profit in which marginal revenue equals marginal cost (MR= MC) Since Chuck must reduce his price to sell more units, he has an incentive to sell a smaller quantity than a perfective competitive company

Learn more about Marginal revenue :

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3 0

2 years ago

Which of the following best describes an opportunity cost:

MissTica

Answer:

The answer is A.

Explanation:

Opportunity cost is the cost of an action that was not chosen or selected. It is also the cost of alternative forgone. For example, Mr A has two choices - taking employment of $20,000 per annum or being self-employed (setting up a farm that will generate $25,000 per annum). He decides to go for farming. The opportunity cost here is the cost of taking the employment ($20,000).

Opportunity cost is relevant in decision making. Companies use opportunity cost when making strategic or tactical decisions. There must be an alternative to every decision which must be considered before making a decision.

Though opportunity cost is a relevant cost but it is never shown on financial statement. It is never part of financial records.

3 0

3 years ago

Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $1,400,000 of 4-year,

Naily [24]

Answer:

A1.Apr.1

Dr Cash $1,449,138

Cr Premium on Bonds Payable $49,138

Cr Bonds Payable $1,400,000

A2. Oct. 1

Dr Interest Expense $24,431

Dr Premium on Bonds Payable $24,569

Cr Cash $49,000

B. The BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.

Explanation:

A1. Preparation of the journal entry to record Issuance of bonds on April 1Apr.1

Dr Cash $1,449,138

Cr Premium on Bonds Payable $49,138

($1,449,138-$1,400,000)

Cr Bonds Payable $1,400,000

(To record Issuance of bonds)

A2. Preparation of the journal entry to record First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method.

Oct. 1

Dr Interest Expense $24,431

($49,000-$24,569)

Dr Premium on Bonds Payable $24,569

[($1,449,138-$1,400,000)4*2]

Cr Cash $49,000

( $1,400,000 x 7% x 6/12)

(To record First interest payment and amortization of bond premium )

B. Based on the information given the reason

WHY the company was able to issue the bonds for $20,811,010 RATHER THAN for the FACE AMOUNT of $20,000,000 was because the BONDS was paying HIGHER INTEREST RATE of 7% to the MARKET INTEREST RATE of 6%.

3 0

3 years ago

Mica buys "Nature," a movie, through Open View, an online entertainment vendor. Before completing the purchase and downloading "

Pani-rosa [81]

Answer: A browse-wrap term.

Explanation:

A browse-wrap term is an agreement between the owner of a website and the user of that website, where the web user is notified that he/she agrees to the terms of usage of the website (clearly stated on the site) even as they continue browse in the website. A browse-wrap term doesn't require a site user to click an agreement box to accept terms of website usage. Open view is making use of browse-wrap term in their website.

8 0

3 years ago

Depository Institutions are required to______and_____, although the general terms used to describe these financial products may

Valentin [98]

Answer:

Depository Institutions are required to ACCEPT DEPOSITS and HAND OUT LOANS, although the general terms used to describe these financial products may vary across the various types of institutions. Non-depository Institutions, In contrast, accept cash contributions from their customers, but the cash inflows are not called DEPOSITS. Instead, they're called shares or premiums.

Non-depository Institutions include:_____.

B. Mutual funds, insurance companies, brokerage firms, and financial services companies.

What are the different forms and products of non-depository Institutions?

Non-depository institutions include:

finance companies that generally make personal loans
securities firms that trade securities, provide brokerage services and/or are investment banks
insurance companies that provide insurance services
investment companies that sell their securities and then invest the proceedings, e.g. mutual funds

If you wanted to purchase investment advice, as well as stocks, bonds, and other investments, which type of non-depository institution should you contact?

B. A stock brokerage firm.

Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and activities of, and the financial products and services provided by, various depository institutions. Which of the following statements are true?

A. Mutual savings banks and credit unions are similar in that both are owned by their depositors, who share in their profits.

B. Demand deposit accounts created by commercial banks are usually called checking accounts or negotiable order of withdrawal (NOW) accounts, while those created by credit unions are called share draft accounts.

5 0

4 years ago