Given that: F (Future worth) = $2,500, i (nominal interest rate)
= 0.12, compounded monthly = 12 months, years of investment = 1 year, and no.
of employees = 20. Compute using the annuity formula: A=Fi/(((1+i)^n)-1).
Calculating i = 0.12/12 = 0.01, since it is compounded monthly. Calculating n
(total number of compounding) = 1 x 12 = 12, since year of investment is equal
to 1. Substituting F=2500, i=0.01 and n=12 to the annuity formula, you will get
A=$197.12. Multiply by 20, you will get $3,942.44.
Incomplete question. However, I answered based on the information.
Explanation:
We can determine which Credit card is best in terms of its interest rate by comparing both rates monthly:
Credit card A
<u>APR for the First 3 months:</u>
4.1% / 360 days = 0.009% x 30 = <u>0.27% </u>per month for the first 3 months.
<u>APR for Next 9 months:</u>
15.7% / 360 days = 0.04361% x 30 = <u>1.308% </u>per month for the next 9 months.
Credit card B:
<u>APR the First 3 months</u>
4.2% / 360 days = 0.011% x 30 = 0.33% per month for the first 3 months
<u>Next 9 months:</u>
15.5% / 360 = 0.04305% x 30 = <u>1.291%</u> per month for the next 9 months
Hence, we can conclude,
- For the first 3 months,
Credit Card A is best because it offers lower interest charges.
- For the next 9 months, Credit Card B is best because it offers lower interest charges.
Answer and Explanation:
The financial statement effects template to reflect the following events is shown below:-
Balance Sheet
Transaction Cash assets + Non Cash = Liabilities+Contributed assets capital Earned Capital
a. $400,000 $400,000
b. -$18,000
-$18,000
c. -$202,000 -$202,000
Income statement
Transaction Revenue - Expense = Net income
b. $18,000 -$18,000
c. $2,000 -$2,000
Answer:
4. The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.
Explanation:
Substitute goods are goods that can be used in place of each other.
If the price of electric automobiles rises, the automobile becomes more expensive for consumers. Consumers would reduce the quantity demanded of the electric automobile and shift its demand to gas powered automobiles.
As a result, the demand for gas automobiles increases and the equilibrium price would increase too.
I hope my answer helps you
Answer:
6.53%
Explanation:
For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:
Given that,
Present value = $1,050.76
Future value or Face value = $1,000
PMT = 1,000 × 10% = $100
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying this above formula
1. The pretax cost of debt is 8.70
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8.70% × ( 1 - 0.25)
= 6.53%
