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vodka [1.7K]
3 years ago
15

An insurance company is

Business
1 answer:
SVEN [57.7K]3 years ago
5 0

Answer:

a financial intermediary b/c they take premiums and use them to purchase financial securities

Explanation:

A business that provides coverage, in the form of compensation resulting from loss, damages, injury, treatment or hardship in exchange for premium payments. The company calculates the risk of occurrence then determines the cost to replace (pay for) the loss to determine the premium amount.

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Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.50. At the end of year 1
kkurt [141]

Answer:

17.76%

Explanation:

The computation of the time-weighted return on your investment is given below

But before that we have to do the following calculations

Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%

Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%

Now the time weighted return is

(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)

= 1.1412 × 1.2151

= √1.3867 - 1

= 17.76%

8 0
2 years ago
The transactions of Spade Company:
diamong [38]

Answer:

Trial Balance

                                                                                                    Debit     Credit

Cash                                                                                           $8,982

($16,500 - $479 + $1,947 - $9,125 - $530 + $1,469 - $800)  

Common Stock                                                                                        $16,500

Office Supplies                                                                             $479

Office Equipment                                                                      $9,125

Accounts Payable ($9.125 - $9,125)                                                            $0

Service Fees ($1,947 + $3,498)                                                               $5,445

Accounts Receivable ($3,498 - $1,469)                                  $4,967

Rent Expense                                                                              $530

Dividends                                                                                    $800

Totals                                                                                        $21,945  $21,945

Explanation:

A trial Balance is a list of balances that are extracted from the ledger accounts  from which the financial statements are prepared.

First Record the Transaction, then determine account balances.

a.

Cash $16,500 (debit)

Common Stock $16,500 (credit)

b.

Office Supplies $479 (debit)

Cash $479 (credit)

c.

Office Equipment $9.125 (debit)

Accounts Payable $9.125 (credit)

d.

Cash $1,947 (debit)

Service Fees $1,947 (credit)

e.

Accounts Payable $9,125 (debit)

Cash $9,125 (credit)

f.

Accounts Receivable $3,498 (debit)

Service Fees $3,498 (credit)

g.

Rent Expense $530 (debit)

Cash $530 (credit)

h.

Cash $1,469 (debit)

Accounts Receivable $1,469 (credit)

i.

Dividends $800 (debit)

Cash $800 (credit)

5 0
2 years ago
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of
Reika [66]

Answer:

$4 and $4

Explanation:

The computation are shown below:

Per hour cost = Total set up cost ÷ Total direct labor hours

                          = $64,800 ÷ $81,000

                          = $0.8

Now the set up cost would be

= Per hour cost × Direct labor hours per unit

For Plus

= 5 × $0.8

= $4

For Max

= 5 × $0.8

= $4

All other given information is not important. Hence, ignored it

4 0
3 years ago
Suppose a decrease in consumer confidence has caused aggregate demand to shift from AD to AD1.
Romashka-Z-Leto [24]

Based on the shift of aggregate demand from AD to AD1, the aggregate demand would have changed by -$30 Billion.

The expenditures multiplier based on the MPC is 5.

The investment needs to change by $6 billion.

To get to the required investment demand, the Fed needs to change rates from 10% to <u>7%</u> and would need to adjust the money supply by $20 billion increase.

<h3>What is the change in aggregate demand?</h3>

This can be found as:

= ADI - Real GDP at AD

= 90 - 120

= -$30 billion.

<h3>What is the expenditure multiplier?</h3>

This can be found as:

= 1 / ( 1 - MPC)

= 1 / (1 - 0.8)

= 5

<h3 /><h3>What should the investment change by?</h3>

Investment demand should change by:

= Shortfall in GDP / Multiplier

= 30 / 5

= $6 billion

<h3>What interest rate should the Fed implement to the investment level required?</h3>

Investment amount required:

= Current investment + Required investment

= 10 + 6

= $16 billion

Rate needs to become 7% according to graph.

<h3>How much should money supply be adjusted?</h3>

In order to get to the desired 7%, the money supply needs to increase to $50 billion. The adjustment is:

= New level - Current level

= 50 - 30

= $20 billion

Find out more on Money supply at brainly.com/question/3625390.

4 0
2 years ago
Describe the last time you made a purchase based on possession utility. What factors influenced your purchase?
zloy xaker [14]

Answer: price, reviews of the product, and the overall quality of the item.

Explanation:

7 0
2 years ago
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