Answer:
The amount after 2 years will be $460590
Explanation:
The payment which is done 2 year from today = $200000
The payment which is done one year from today = $150000
Rate of interest = 3 %
So the amount after 1 year
The amount which is done today = $100000
So amount after 2 years
So total amount after 2 years = $106090+$154500+$200000 = $460590
Answer:
Credit the following;
Investment (Available for sale) $18,000
Gain on sale of an investment $2,000
Explanation:
Assuming all the unrealized holding gains and losses have been reversed, the investment will be recorded at the original cost of $18,000 instead of the fair value and the gain would then be $2,000.
The Journal entry for the sale would be;
DR Cash.......................................... .............$20,000
CR Investment (Available for sale)......................... $18,000
Gain on sale of an investment .................................$2,000
<em>(To record sale of bond investment)</em>
Answer:
Store of value.
Unit of account.
Medium of exchange.
Explanation:
Store of value is an asset that can be restored and then traded with other things. When the assest is redeemed it is expected to be of great value. Also a store of value is anything that holds purchasing power in the future.
Unit of account is one of the primary functions of money. Also defined as the unit by which value of a thing is accounted and compared.
Medium of exchange occurs when there is any transaction between buyers and sellers.
Answer:
c. increases the quantity of goods and services demanded.
Explanation:
According to the law of demand, there is an indirect relationship between demand and the prices for good or service. Should the price of a good or service increase, its demand will decrease. Demand comprises of the willingness and ability to buy.
A decrease in the price level will make the product affordable by more buyers. The market will afford to buy more of that product. The law of demand works together with the law of supply. The intersection of demand and supply curves determines the price of a product.
Answer:
Do a pilot study
Explanation:
In order for the management to be assured that the product works, a pilot study needs to be done. This involves the sampling out of the small number of the useful product. In doing so, they can monitor the sales and see how they do on the market. From the market study, they can then increase the production of the material to the target potential customer. This makes the business to be powerful and realize profits an minimize losses.
