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3 years ago

Interest can be regarded as the Group of answer choices

Business

1 answer:

Studentka2010 [4]3 years ago

4 0

Answer:

Option (b) is correct.

Explanation:

Interest refers to the amount of money that a lender can earn on giving the loans to the borrowers. Borrower is a person who is liable to pay the interest on the borrowing amount.

Normally, a person is borrowing money or funds from the lender for making investment in a certain types of capital goods.

Interest rate refers to the rate at which lender lends its loanable funds to the borrowers.

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Tasty Treat Tea is a popular iced tea drink. When the manufacturer begins to use imported tea leaves, the price rises and consum

OverLord2011 [107]

The scenario you described suggests that the Law of Demand is correct.

Increase in price will always lead to loss of demand, while replacements for that product will grow in demand.

4 0

3 years ago

E14.3 (LO 1) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2020, Simon Compan

Savatey [412]

Answer:

1) January 1, 2020

Dr Cash 200,000

Cr bonds payable 200,000

July 1, first coupon payment

Dr Interest expense 4,500

Cr Cash 4,500

December 31, fourth coupon payment

Dr Interest expense 4,500

Cr Interest payable 4,500

2) June 1, 2020

Dr Cash 104,000

Cr Bonds payable 100,000

Cr Bond interest payable 4,000

July 1, first coupon payment

Dr Interest expense 2,00

Cr Cash 2,000

December 31, accrued interest expense

Dr Interest expense 6,000

Cr Interest payable 6,000

8 0

3 years ago

Piedmont Hotels is an all-equity company. Its stock has a beta of .87. The market risk premium is 7.4 percent and the risk-free

vovikov84 [41]

Answer:

12.64%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4% + 0.87 × 7.4%

= 4% + 6.438%

= 10.438%

The Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied.

Now the required rate of return would be

= 10.438% + 2.2%

= 12.64%

7 0

3 years ago

Why does the government plan its financial expenditure framework for a period of five years?

Leto [7]

Because the financial expenditure

4 0

3 years ago

When the accounts of Blue Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual

torisob [31]

Answer:

1.-

insurance expense 1,020 debit

prepaid insurance 1,020 credit

2.-

rent revenue 1,650 debit

cash 1,650 credit

cash 1,650 debit

unearned revenue 1,650 credit

unearned revenue 1,100 debit

rent revenue 1,100 credit

3.-

advertizing expense 535 debit

advertizing supplies 535 credit

4.-

interest expense 802 debit

interest payable 802 credit

Explanation:

2-years of 4,896 AKA 24 months

months outstanding during the year: August 1st to December 31th: 5 months

4,896 x 5/24 = 1,020

purchases of advertising materials 801

materials on hand at year-end <u> (266) </u>

advertising expense 535

we must reverse the entry as the rent revenue wasn't accrued yet we have unearned revenue and at year-end we adjust for the earned protion which is 2 months: 1,650 x 2/3 = 1,100

as the inerest are accrued it means we aren't paying them at year-end

5 0

3 years ago