Answer:
Monthly Interest rate = 0.475%
EAR = 5.85%
Explanation:
a.
APR = 5.7%
Monthly Interest rate = APR / n
Monthly Interest rate = 5.7% / 12
Monthly Interest rate = 0.475%
b.
APR = 5.7%
m = 12
EAR = [ ( 1 + (APR / m))^m] - 1
EAR = [( 1 + (0.057 / 12))^12] - 1
EAR = [( 1 + 0.00475 )^12] - 1
EAR = [( 1.00475 )^12] - 1
EAR = 1.0585 - 1
EAR = 0.0585
EAR = 5.85%
True monthly rate of interest is 0.475%
EAR is 5.85%
Answer:
The price of a Dinner= $6.22
Explanation:
<em>Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.</em>
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
Answer:
$22,789
Explanation:
One of the uses of the Bank Reconciliation Statement is to check the accuracy of the Cash Balance.
The Balance on the Bank Statement and that of the Cash Book in the Ledgers should always agree.
Bank Reconciliation Statement as a July 31
Balance as per Bank Statement $22,364
Add Lodgments not yet credited $1,745
Less unpresented checks ($1,320)
Balance as per Cash Book $22,789
Therefore,
The balance of cash using a bank reconciliation is $22,789
Answer:
Direct material price variance= $20,100 unfavorable.
Explanation:
Giving the following information:
Direct materials 7 pounds at $0.60 per pound = $ 4.20
During the latest month, the company purchased and used 67,000 pounds of direct materials for $.90 per pound to produce 10,000 units of output.
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.60 - 0.90)*67,000= $20,100 unfavorable.
Answer:
YTM = 6.42%
Explanation:
current market value = $1,000 x 98% = $980
n = (15 - 2) x 2 = 26
coupon = $1,000 x 6.2% x 1/2 = $31
face value = $1,000
YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]
YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%
