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Vladimir79 [104]

3 years ago

8

Morgan Co. signs a $50,000 noninterest-bearing 5-year note payable for goods purchased from Xelco Industries. The appropriate ra

te of interest for this type of note is 10%. At the time the note is signed, what is the present value of the note on Morgan's records

1 answer:

riadik2000 [5.3K]3 years ago

5 0

Answer:

$31,046

Explanation:

You take the $50,000 and divide it by 1.10^5 = $31,046

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O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal yield to maturity is 9.25%,

kozerog [31]

Answer:

8.99%

Explanation:

For this question we use the PMT function that is presented on the excel spreadsheet. Kindly find it below:

Given that,

Present value = $975

Future value = $1,000

Rate of interest = 9.25% ÷ 2 = 4.625%

NPER = 25 years × 2 = 50 years

The formula is shown below:

= PMT(Rate,NPER,-PV,FV,type)

The present value come in negative

So, after solving this, the PMT is $44.96

Now the annual PMT is

= $44.96 × 2

= $89.92

So, the coupon interest rate is

= $89.92 ÷ $1,000

= 8.99%

4 0

3 years ago

The quantity sold in a market will decrease if the government decreases aA. binding price floor in that market.B. binding price

Pavlova-9 [17]

Answer: B

Explanation:

Price ceiling is the highest authorized price that could be charged by sellers for a good.

Prices received by sellers will be reduced if government would bring down authorized price in the market.

5 0

3 years ago

andrew-mc [135]

I would say that is an alright deal you get prime video and music

5 0

3 years ago

Journalize the following transactions for Combs Company.

Anarel [89]

Answer: See explanation

Explanation:

a. Debit: Raw material $12000

Credit: Account payable $11500

Credit: Material price variance $500

(To record material purchase)

b. Debit: Work in process 11600

Credit: Raw material 11200

Credit: Material price variance 400

(To record material issued)

Note:

Material price variance for (a)= 12000 - 11500 = 500

Work in progress = 5800 × 2 = 11600

Material price variance for (b) = 11600 - 11200 = 400

5 0

2 years ago

5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $345.8 billion in 2015.

ikadub [295]

Answer & Explanation:

a. MPC = 0.50; Change in consumption spending = $345.8 billion

According to multiplier formula,

Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in consumption spending*2 = (345.8)*2 = $691.6 billion

Change in GDP = $691.6 billion

b. Change in investment = -$100

According to multiplier formula,

Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in investment*2 = (-100)*2 = -200

So, total change in GDP = 691.6 - 200 = $491.6 billion

Change in real GDP = $491.6 billion

c. Percentage change in real GDP = (Change in Real GDP/GDP at the end of 2014)*100 = (491.6/15,982.3)*100 = 3.08%

7 0

3 years ago