Answer:
$693.16
Explanation:
Calculation to determine How much less than your brother will you have to deposit today
Using this formula
FV= Present value × (1 + interest rate)^number of years
Let plug in the formula
First step
$28,000 = Present value × (1 + 0.112)^13
PV= $28,000 ÷ 1.112^13
PV= $28,000 ÷ 3.97522975235
PV= $7,043.618
Second step
$28,000 = Present value × (1 + 0.104)^13
PV= $28,000 ÷ 1.104^13
PV= $28,000 ÷ 3.61907808993
PV= $7,736.777
Now let calculate how much less than your brother will you have to deposit today
Deposit today= $7,736.777-$7,043.618
Deposit today= $693.159
Deposit today=$693.16 (Approximately)
Therefore How much less than your brother will you have to deposit today will be $693.16
Answer:
Correct option is (d)
Explanation:
Current liabilities are part of obligations of the organization that it needs to meet within one year. Current maturities of long term debt represents that part of long term debt such a bonds or loans that need to be paid of in the current financial year.
It is shown as a separate item in the balance sheet as it is paid off using highly liquid asset such as cash.
Answer:
a) legal promise to repay a debt.
Explanation:
A bond is an agreement that is made between the issuer or the bank or the financial institution and the borrower.
The agreement was made in written specify the terms and conditions which involve the borrowed amount, interest rate, and the time period in which the borrower promises to pay back the money to the financial institution.
Answer:
2.58%
Explanation:
Mathematically, the relationship between the different interest rates using the equation is shown below:
(1+S2)^2=(1+S1)^1*(1+2y1y)
The spot rate in year 2 is the same as the spot rate in year 1 multiplied by the 1-year forward rate beginning in year 2.
S2=2-year rate =2.34%
S1=1-year rate =2.10%
2y1y=one-year interest rate 2 years from now=the unknown
(1+2.34%)^2=(1+2.10%)^1*(1+2y1y)
(1+2y1y)=(1+2.34%)^2/(1+2.10%)^1
2y1y)=(((1+2.34%)^2/(1+2.10%)^1)-1
2y1y=1.025805642-1
2y1y= 2.58%
The formula shows that borrowing or lending for 2 years at 2.34% is the same as borrowing or lending at 2.10% in year and 2.58% forward rate in year 2
Answer:
.b This is a bilateral contract, and Mark is entitled to nothing because he did not perform
Explanation:
The contract is bilateral as obligation to perform exist for both parties.
Helen is obligated to pay the reward to the person who finds the cat and bring her home.
As Mark didn't find the cat it didn't perform (find the cat) Helen is not obligated to payup the reward for Fluffy
