To answer the question, I assume that the given interest is annual and simple interest. The interest acquired by the investment in simple interest is given by the equation,
I = P x i x n
where I is interest, P is present worth, i is rate and n is number of interest period. Assuming that a year is 360 days,
I = ($700) x (0.105) x (90/360)
The answer is 18.375. Therefore, the interest due is approximately equal to $18.38.
Exit the roadway. Hope this helps!
Answer:
B) $114,000
Explanation:
To calculate the operating cash flows using the top down approach we can use the following equation:
operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid
operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000
I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
- bank A = $1,000 x 10% = $100
- bank B = $1,000 x 90% = $900
If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.