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jenyasd209 [6]
3 years ago
12

On July 8, Action Co. issued a $70,000, 6%, 120-day note payable to Scanlon Co. Assuming a 360-day year, what information is nee

ded to calculate the maturity value of the note? a.The interest rate (6%) and the term (120 days) are needed to calculate the maturity value of the note. b.The face value of the note ($70,000) is needed to calculate the maturity value of the note. c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note. d.None of the information given is needed to calculate the maturity value of the note.
Business
1 answer:
nirvana33 [79]3 years ago
4 0

Answer:

c.The face value ($70,000), interest rate (6%), and term (120 days) are needed to calculate the maturity value of the note.

Explanation:

maturity value = face value + interest

interest = face value*interest rate*period

             = $70,000*6%*120/360

             = 1400

face value = 70,000

maturity value = 70,000 + 1400

                        = 71400

Therefore, face value and interest rates needed to calculate the maturity value of the rate.

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A zero coupon bond: is sold at a large premium. can only be issued by the U.S. Treasury. has a market price that is computed usi
kupik [55]

Answer:

A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

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E. has a market price that is computed using semiannual compounding of interest.

Answer is : B

Explanation:

In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.

5 0
3 years ago
ATech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year ear
Triss [41]

Answer: Degree of Operating Leverage

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Explanation:

As defined in question itself,

Degree of Operating Leverage = 1 + \frac{fixed\ cost}{Profit}

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Although the fixed cost differ by $1 million.

A Tech Degree of operating Leverage = 1 + \frac{7,000,000}{4,000,000} = 2.75

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5 0
3 years ago
If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the fi
Margarita [4]
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3 years ago
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Answer:

Price at which this system is sold is $1,980

so correct option is B. $1,980

Explanation:

given data

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to find out

price at which the system is sold

solution

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