Answer:
$2.4074/pound
Explanation:
The law of one price states that the same good in two different countries must be sold for the same amount of money, which means that the $/pound spot rate must ensure that wheat costs the same on both countries.
Therefore, the spot rate 'r' is:
The spot rate should be $2.4074/pound.
The answer to the question is shown below.
<h3>
What is the Interest rate?</h3>
- In finance and economics, interest is the payment of an amount above the repayment of the principal sum (that is, the amount borrowed) by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate by borrower or deposit-taking financial institution.
- It differs from a fee that the borrower may pay to the lender or a third party.
- It is also distinct from a dividend, which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a fixed rate, but rather on a pro-rata basis as a share of the reward gained by risk-taking entrepreneurs when revenue exceeds total costs.
Calculation:
Given -
Annual Interest Rate:
So, Annual Interest Rate:
- 5.75% = 1000 × 5.75%= 57.50
- 6.40% = 1000 × 6.40%= 64.00
- 6.00% = 1000 × 6.00%= 60.00
- 7.55% = 1000 × 7.55%= 75.50
So, Semiannual Interest Amount:
- 5.75% = 1000 × 5.75%/2 = 28.75
- 6.40% = 1000 × 6.40%/2 = 32.00
- 6.00% = 1000 × 6.00%/2 = 30.00
- 7.55% = 1000 × 7.55%/2 = 37.75
Therefore, the answer to the question is shown below.
Know more about Interest rates here:
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The complete question is given below:
Calculate the annual interest and the semiannual interest payment for the following corporate bond issues with a face value of $1,000. (Round your answers to 2 decimal places.) Find: Annual Interest Amount, and Semiannual Interest Payment
Annual Interest Rate:
5.75%
6.40%
6.00%
7.55%
Answer:
The correct answer is $81,400.
Explanation:
According to the scenario, the given data are as follows:
Current earning = $74,000
As Brad is searching for a city which is 10% higher than current city then to maintain same living he has to earn 10% more than he earns.
So, total earning needed = $74,000 + 10% of $74,000
= $74,000 + $7,400
= $81400
Hence, the total earning brad needed is $81,400.
Answer and Explanation:
The Journal entry is shown below:-
1. Income Tax Expense Dr, $336 million
Deferred Tax Assets Dr, $29 million
($116 million × 25%)
To Income Tax Payable $365 million
($1,460 × 25%)
(Being income tax and deferred tax is recorded)
2. Income Tax Expense Dr, $400 million
To Income Tax Payable $340 million
($1,360 × 25%)
To Deferred Tax Assets $60 million
(($354.0 million - $116 million) × 25%)
(Being income tax and deferred tax is recorded)
