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3 years ago

______________, in a savings account, is calculated as a percentage of what you have saved.

1 answer:

7 0

Interest, in a savings account, is calculated as a percentage of what you have saved.

A bank will let you know what percentage of interest they pay monthly on your savings account. Each bank can vary by what they pay in interest so it is important to do your research and search for a bank that gives an amount back that is suitable to you. Keeping your money in savings allows for interest to accrue at a faster rate.

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Union Local School District has bonds outstanding with a coupon rate of 4.9 percent paid semiannually and 20 years to maturity.

RUDIKE [14]

Answer:

Ans. Price of the bond is $9,250.57

Explanation:

Hi, first we need to establish the semi-annual coupon of the bond and the semi-annual discount rate (YTM semi-annually)

Coupon=10000*(4.9%/2)= $245

To turn the annaul YTM to semi-annual, we have to use the following equation

$YTM(semi-annual)=(1+YTM)^{\frac{1}{2} } -1$

$YTM(semi-annual)=(1+0.056)^{\frac{1}{2} } -1=0.0276$

After all this, we are ready to find the price, here is the math of this.

$Price=\frac{245((1+0.0276)^{39}-1) }{0.0276(1+0.0276)^{39} } +\frac{(245+10000)}{(1+0.0276)^{40} } =9250.57$

Best of luck.

4 0

3 years ago

In its first year of operations, Grace Company reports the following:

ANEK [815]

Answer:

D) $25,000.

Explanation:

The Accrual Basis of Accounting is the process in which income earned or expenses incurred are recorded at the time the transaction takes place, whether or not the cash has been exchanged.

Net Income is derived by subtracting Expenses from Revenue.

N.B. Prepaid Expenses are Advance Payments towards expenses and are a Balance Sheet Items and will not be recorded under Net Income Calculations until the Expenses are realized.

So, The Net Income can be calculated as follows;

Revenue $60,000

Less: Expenses $35,000

Net Income $25,000

Hence Option D will be correct answer.

#NETINCOME

#PREPAIDEXPENSES

#ACCRUALBASISOFACCOUNTING

5 0

3 years ago

In its income statement for the year ended December 31, 2019, Sheridan Company reported the following condensed data. Operating

olga55 [171]

Answer&Explanation:

Net Income Statment for the Year Ended December 31,2019

Net sales 2,416,300

Cost of goods sold (1,334,200)

Gross Profit 1,082,100 Sales - COGS

Operating expenses (759,720)

Operating Income 292,380 Gross Profit - Operating Expenses

Interest revenue 29,970

Interest expense (71,270)

Loss on disposal of plant assets (15,910)

Other Income (57210)

Net income 235,170 Operating Income + Other income

Other comprehensive income 6,920.

Comprehensive Income 242,090 Net Income - OCI

6 0

3 years ago

An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns o

Keith_Richards [23]

Answer:

$P(X$

And we can find this probability using the normal standard distribution table or excel and we got:

$P(Z$

Explanation:

Previous concepts

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

The Z-score is "a numerical measurement used in statistics of a value's relationship to the mean (average) of a group of values, measured in terms of standard deviations from the mean".

Solution to the problem

Let X the random variable that represent the expected return, and for this case we know the distribution for X is given by:

$X \sim N(11,26)$