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GREYUIT [131]
3 years ago
15

"You want to invest $13,000 and are looking for safe investment options. Your bank is offering a certificate of deposit that pay

s a nominal rate of 8.00% that is compounded daily. Your effective rate of return on this investment is"
Business
2 answers:
ZanzabumX [31]3 years ago
7 0

Answer:

The effective rate of return on this investment is 8.33%.

Explanation:

The effective rate of return is an interest rate applied (either earned or paid) on an amount invested annually and when the amount is compounded more than one.

The formula to compute the effective rate of return is:

Effective rate of return =[(1+(\frac{Nominal\ Rate}{n} ))^{n})-1]

The nominal rate is 8% compounded annually.

Compute the effective rate of return as follows:

Effective rate of return =[(1+(\frac{Nominal\ Rate}{n} ))^{n})-1]

                                      =[(1+(\frac{0.08}{365} ))^{365})-1]\\=[(1.00022)^{365}-1]\\=[1.0833-1]\\=0.0833\\\approx8.33\%

Thus, the effective rate of return on this investment is 8.33%.

kondor19780726 [428]3 years ago
5 0

Answer:

8.327833%

Explanation:

Given:

Invested Amount = $13,000

Nominal Rate = 8.00%

Effective rate of return = ?

Number of annuity = 1 year = 1 x 365 = 365

The\ Effective \ Rate \ of \ Return = [1+\frac{Nominal Rate}{n}]^n-1\\=[1+\frac{0.08}{365} ]^{365}-1\\=[\frac{365.08}{365} ]^{365}-1\\=(1.00021918)^{365}-1\\=1.08327833-1\\=0.08327833

So , the Effective Rate of return = 0.08327833 or 8.327833%

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Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the follo
trapecia [35]

Question:

Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the following selected transactions.

1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $5,400.

2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance.

3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2016 at $41 per share.

(a) Prepare the journal entry to record item 1.

(b) Prepare the journal entry to record item 2.

(c) Prepare the journal entry to record item 3 using the cost method.

Answer:

a.

Cash = $239,600

Common Stock = $25,000

Paid in Capital = $214,000

b.

Land: = $60,000

Common Stock: = $6,000

Paid in Capital = $54,000

c.

Treasury Stock: $21,120

Cash: $21,500

Explanation:

a.

Cash

Cash is calculated as: 5,000 shares * $49 market price/share – $5,400 of issue costs]

Cash = $239,600

Common Stock

Common Stock is calculated as: 5,000 shares * $5 par value/share

Common Stock = $25,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Cash - Common Stock = $239,000 - $25,000

Paid in Capital = $214,000

b.

Land:

Land is calculated as 1,200 shares * $50 market price/share = $60,000

Common Stock:

Common Stock is calculated as: 1,200 shares * $5 par value/share = $6,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Land - Common Stock = $60,000 - $6,000

Paid in Capital = $54,000

c. Treasury Stock is calculated as:

480 stocks * $44 cost per share

= $21,120

Cash: $21,500

4 0
3 years ago
Which product is an example of a consumer good? stock share in a tech company dog food for a pet boarding facility paint sprayer
Tamiku [17]

The product that is an example of a consumer good is shop gallon of milk to use in a bowl of cereal. Consumer goods are mostly consumed immediately.

<h3>What are consumer goods?</h3>

Consumer goods are products or goods that are bought for consumption. Consumer goods are mostly finished products from a factory such as buscuit, cereals, milk, bread that can be sell on retail to the consumer.

The products are ate and mostly bought for personal use from a supermarket, store or exhibition.

Most of the consumer products can be consumed without any further processing.

Areas with high rate of consuming consumer products will have economic growth this is because the increase in it's demand help to improve economy.

Therefore, The product is an example of a consumer good is shop gallon of milk to use in a bowl of cereal.

Learn more on product below

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4 0
2 years ago
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a nine-year operating lease agre
ziro4ka [17]

Answer:

a.Lakeside's earnings will reduce  by $156,000

b. Lakeside's earnings will increase by $20,000.

Explanation:

The rental fee payment per quarter =$39,000.

The rental fee payment per year = $39,000 x 4 = $156,000

In this case, none of the classification criteria of a capital lease is met. Hence, the lease will be recorded as an operating lease and all the four quarterly payments will be recorded as rent expense by LLT. This will reduce LTT's earnings by $156,000.

Lakeside will record all the payments received from LTT as rent revenue since it is an operating lease. Also, because Lakeside is the owner of the asset, she will record depreciation on the asset too.

Thus,

Increase in lakeside's earnings = Rent revenue - Depreciation expense.

Rent revenue = $156,000

Depreciation expense = $3,400,000 / 25 = $136,000

Thus,

Lakeside's earnings will increase by $20,000 (that is , $156,000 - $136,000).

4 0
3 years ago
For the person to whom this utility function applies, a. her level of satisfaction will be enhanced equally by an increase in we
Solnce55 [7]

Answer:

b. the more wealth she has, the less utility she gets from an additional dollar of wealth.

Explanation:

Utility is the satisfaction derived from a good. Total Utility is the total satisfaction from all units of a good. Marginal Utility is the additional satisfaction from an additional unit of a good.

The Law of Diminishing Marginal Utility states that : As consumer gets more & more of a good, the additional utility (satisfaction) from each successive unit keeps on declining. It implies that marginal utility decreases, & total utility increases at a decreasing rate.

Therefore : A person has more marginal utility (additional satisfaction) from an additional dollar, if he has less money (dollars). And, relatively less marginal utility from an additional dollar if he has more money (dollars).

Example : A rich person having millions of dollars would get less marginal utility (additional satisfaction) from gaining a single dollar, than a poor person having few dollars.  

6 0
3 years ago
The break-even point is a.the maximum possible operating loss. b.where the total sales line intersects the total costs line on a
Alisiya [41]

Answer:

The answer is B.

Explanation:

To a layman, break-even point is the point where an entity neither make profit nor loss. It is the point where total revenue equals total cost(where the total sales line intersects the total costs line on a cost-volume-profit chart).

Points greater or above this intersection or point mean the firm is making profit and points lesser or below this intersection or point mean the firm is making loss.

4 0
3 years ago
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