Answer:
Here we need to find the length of an annuity. We know the interest rate, the PV, and the payments. Using the PVA equation:
PVA =C({1 – [1/(1 +r)t]} /r)
$14,500 = $500{[1 – (1/1.0155)t] / 0.0155}
Now we solve for t:
1/1.0155t = 1 − {[($14,500)/($500)](0.0155)}
1/1.0155t= 0.5505
1.0155t= 1/(0.5505) = 1.817
t = ln 1.817 / ln 1.0155 = 38.83 months
<u>Account will be paid off in 38.83 months.</u>
Answer: Substitute
Explanation:
Substitute goods are the goods that can be used for the same purpose. Complement are the goods that are used together e.g. car and petrol.
It should be noted that when the price of a good increase, people move to the substitute and this will being about the rise in the quantity demanded of the other good.
Therefore, as the price of good X rises from $10 to $12, the quantity demanded of good Y rises from 100 units to 114 units shows that the are substitutes.
Answer:
b. $433,750
Explanation:
The ending balance in retained earnings can be calculated as;
= Beginning balance + Net income - Cash dividends
Given that;
Beginning balance = $430,000
Net income = $60,000
Cash dividends = $56,250
= $430,000 + $60,000 - $56,250
= $433,750
Therefore, the ending balance in retained earnings is $433,750
Answer:
$481,000
Explanation:
Bond issue costs are either direct or indirect costs:
- direct costs include underwriting fees, listing fees, professional fees, compliance costs and other costs related to the IPO or APO (secondary issues), e.g printing costs
- indirect costs include underpricing costs (IPO pricing is too low) and loss of proprietary information
Total bond issue costs = $22,000 + $170,000 + $9,000 + $280,000 = $481,000
