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lana [24]
4 years ago
14

A PERSONS ABILITY TO PAY DEBTS FROM REGULAR INCOME AND THEIR EARNING POWER IS CALLED?

Business
1 answer:
nadya68 [22]4 years ago
4 0
Freedom!!!!!!!!!!!!!!!!!!!
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Seaside issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made
mars1129 [50]

Answer:

Total $46,319.9565

Explanation:

We need to calculate the value of the present value of the bond payment

and the maturity using the current market rate

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 2500 (50,000 x 0.10/2)

time 10 (5 years 2 payment per year)

rate 0.06     (12% annual --> divide by 2 to convert semiannual)

2500 \times \frac{1-(1+0.06)^{-10} }{0.06} = PV\\

PV $18,400.2176

\frac{Maturity}{(1 + rate)^{time} } = PV

Maturity 50000

time 10

rate           0.06

\frac{50000}{(1 + 0.03)^{10} } = PV

PV   $27,919.7388

PV bond interest payment  $18,400.2176

PV maturity payment       $27,919.7388

Total $46,319.9565

3 0
3 years ago
Kurnick Co. expects that the pound will depreciate from $1.70 to $1.68 in one year. It has no money to invest, but it could borr
Alik [6]

Answer:

Expected Profit of $21,000.

Explanation:

Kurnick Co. Initial amount borrowed = 1,000,000 pounds

Kurnick Co. converts the amount to dollars = 1,000,000 * 1.70 = $1,700,000.

Invests in 5% risk-free deposit.

Total dollar amount at the end of 1 year = $1,700,000 x 1.05 = $1,785,000.

Total amount owed on the pounds borrowed = 1,000,000*1.05 = 1,050,000 pounds.

Expected amount of dollars needed to repay the loan = 1,050,000 x 1.68 = $1,764,000.

Profit = $1,785,000 - $1,764,000 = $21,000.

7 0
4 years ago
The _____ is used to measure price changes in commonly used goods and services, such as food and housing. real inflation, hyperi
Marina CMI [18]
Consumer price index is correct hope i am brainliest i need it 
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3 years ago
Kinetic Company estimates that overhead costs for the next year will be $1,600,000 for indirect labor and $400,000 for factory u
grandymaker [24]
True is the answer you are looking for
6 0
3 years ago
Importance of having a business plan to ensure the success of a business​
lawyer [7]

Answer:

The importance of a business plan is to help plan out how you want a business to go and to also show how to get around or through obstacles.

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3 years ago
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