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4 years ago

John borrowed P15,000 for 2 years and 6 months, with simple interest at 9%. How much does he owe at the end of the time?

Business

1 answer:

Nonamiya [84]4 years ago

4 0

Answer:

18,375

Explanation:

I'm not sure what kind of currency P is, but the calculations should be the same as if they were dollars.

future value for simple interest = principal x interest rate x time = 15,000 x 9% x 2.5 years = 3,375 (interests only)

the total amount of interests + principal = 15,000 + 3,375 = 18,375

the difference between simple and compound interest is that when interests compounds, earned interest will start earning more interest themselves. While when calculating simple interest, interests only accumulate but do not earn any further interests. E.g. the future value of this debt using compound interest = 15,000 x 1.09²°⁵ = 18,606.19

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When bonds are sold at a premium, if the annual straight-line amortization amount is compared to the annual effective interest a

Tasya [4]

Answer:

When a company uses the straight line amortization of bond premiums, the total amount of interest expense will be equal to the expense calculated using the effective interest method.

The advantage of using the straight line amortization is that it is a much simpler method. Under this method, the bond's premium is amortized over the life of the bond.

8 0

3 years ago

A consumer expenditure survey reports the following information on consumer protein spending:201820192020PQPQPQFish$2.001000$2.5

ivann1987 [24]

Answer:

(a) "Cost of living" index decrease by 14.42% between 2018 and 2019.

(b) "Cost of living" index increase by 30.73% between 2018 and 2020.

Explanation:

Note: See the attached excel file for the calculations of the "cost of living" index for eash of 2018, 2019, and 2020 using 2018 as the base year.

(a) by how much does a "cost of living" index increase between 2018 and 2019.

Cost of living index in 2018 = 100%

Cost of living index in 2019 = 85.68%

Increase (decrease) in cost of living index = Cost of living index in 2019 - Cost of living index in 2018 = 85.68% - 100% = (14.42%)

Therefore, "cost of living" index decrease by 14.42% between 2018 and 2019.

(b) by how much does a "cost of living" index increase between 2018 and 2020.

Cost of living index in 2018 = 100%

Cost of living index in 2020 = 130.73%

Increase (decrease) in cost of living index = Cost of living index in 2020 - Cost of living index in 2018 = 130.73% - 100% = 30.73%

Therefore, "cost of living" index increase by 30.73% between 2018 and 2020.

(c) by how much does a "cost of living" index increase between 2019 and 2020

Cost of living index in 2019 = 85.68%

Cost of living index in 2020 = 130.73%

Increase (decrease) in cost of living index = Cost of living index in 2020 - Cost of living index in 2018 = 130.73% - 85.68% = 45.05%

Therefore, "cost of living" index increase by 45.05% between 2018 and 2020.

Download xlsx

8 0

3 years ago

Companies that use a process-cost accounting system would:

Tanya [424]

Answer:

The correct answer is letter "E": establish a separate Work-in-Process Inventory account for each manufacturing department.

Explanation:

Process-cost accounting is an approach used to assign costs of processes per department on direct materials, direct labor, and factory overhead. In such cases, conversion and prime costs are allocated to each department's manufacturing process to value the inventory of final goods.

Thus, <em>the Work-In-Progress (WIP) Inventory is also assigned according to the manufacturing processes of each department.</em>

3 0

4 years ago

Indicate whether each of the following cost of an automobile manufacturer would be classified as direct materials, direct labor,

CaHeK987 [17]

Answer:

a) DM Windshield

(b) DM Engine

(d) MO Depreciation of factory machinery

(e) MO Factory Machinery lubricants

(f) DM Tires

(g) DL Steering wheel

(h) MO Salary of painting supervisor

Explanation:

Direct materials (DM) are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

Direct labor (DL) is production or services labor that is assigned to a specific product, cost center, or work order.

Manufacturing overhead (MO) is all indirect costs incurred during the production process.

(a) DM Windshield

(b) DM Engine

(d) MO Depreciation of factory machinery

(e) MO Factory Machinery lubricants

(f) DM Tires

(g) DL Steering wheel

(h) MO Salary of painting supervisor

7 0

3 years ago

"Annie Carson, the owner of Annie's Dairy Bar, is considering opening a second location. She evaluates several potential sites b

podryga [215]

Answer:

Observational research

Explanation:

6 0

3 years ago