The yield rate of Timothy's investment as decribed is; 14.52% per annum
According to the question;
- Timothy invests $2400 at time 0.
The return on the investment after the first 3 years provided he receives $700 at the end of each year for the first 3 years.
- After first 3 years; Return = 3 × $700 = $2100.
- At year 4: He pays $1033 = -$1033
- At year 7 and 8; He receives $860 each = $860 × 2 = $1,720
Therefore; the net yield on the investment after 8 years is;
$2100 - $1033 + $1,720 = $2,787
The net yield per year can then be evaluated as follows;
The yield rate of his investment is therefore the percentage yield per annum which is evaluated as follows;
- = ($348.375/$2,400) × 100%
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Answer:
A. Accounts Receivable—Are Corporation 1,075
Cost of Goods Sold 800
Sales 1,075
Finished Goods Inventory 800
Explanation:
The account represent the right to claim the billed ammount to Are Corporation. It is an asset, which increase from debit
COGS are 800 those are expenses, it decrease the owner equity, it goes into debit.
The sales are revenue, this increase the owner equity, it goes into credit.
The inventory decrease, those goods were used and no longer in the company, the accounting must write them off
Answer:
A. uses a percentage of sales method to estimate uncollectible accounts
Explanation:
Difference between the direct write-off and the allowance method for accounting for bad debts are the timing of when bad debts are reported on the books and their ultimate impact on the income statement and balance sheet
True, bonds represent a lower level of risk than do stocks in the same company.
Are stocks lower risk than bonds?
In general, stocks are riskier than bonds since they do not guarantee investor returns, in contrast to bonds, which do so through coupon payments.
What is one difference between stocks and bonds?
Bonds offer a commitment to refund the bond's purchase price, whereas stocks do not include a pledge to repay a stock buyer.
Which bond type would have the lowest risk level?
Bonds are a fantastic choice if you want to make a safe investment that will protect your principal. Savings bonds, Treasury bills, financial instruments, and U.S. Treasury notes are a few of the bonds that are the safest. Stable value funds, money market funds, short-term bond funds, and other highly rated bonds are examples of further safe bonds.
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Answer:
$8,171.37
Explanation:
first we must find the value of their account before they start receiving the distributions, (i.e. how much money they need to have in 20 years):
present value = annual payments x annuity factor
- annual payments = $30,000
- annuity factor (PV, 4%, 10 periods) = 8.1109
present value = $30,000 x 8.1109 = $234,327
now we need to calcualte the annual contribution in order to have $234,327 in 20 years:
future value = annual payment x annuity factor
annual payment = future value / annuity factor
- future value = $234,327
- annuity factor (FV, 4%, 20 periods) = 29.778
annual payment = $234,327 / 29.778 = $8,171.37