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jeyben [28]
3 years ago
6

You have purchased a U.S. Treasury bond for $3,000. No payments will be made until the bond matures 10 years from now, at which

time it will be redeemed for $5,000. What interest rate will you earn on this bond
Business
1 answer:
Studentka2010 [4]3 years ago
5 0

Answer:

.05241 or 5.241%

Explanation:

The computation of the interest rate earned on the bond is shown below;

As we know that

Interest rate = (Redemption price ÷ offer price)^1 ÷ number of years - 1

= ($5,000 ÷ $3,000) ^1 ÷ 10 - 1

= (1.67)^1 ÷ 10 - 1

= (1.67)^.1 - 1

= 1.05241 - 1

= .05241 or 5.241%

We simply applied the above formula so that we can easily determine the

interest rate earned on the bond

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Montgomery Industries spent $700,000 in 2017 on a construction project to build a library. Montgomery also capitalized $35,000 o
slavikrds [6]

Answer:

The Completed lost of Library is

Explanation: $1224880

Solution

Given that:  

                                     Amount Period Average expenditure

Accumulated

expenditure Jan 1         735000     9/9         735000

Feb. 28                          99000       7/9          77000

Apr. 30                          189000      5/9          105000

Jul. 1                               45000       3/9           15000

Sept. 30                         73000        0                  0

Average Accumulated

expenditure                   1141000                       932000

Interest to be capitalized = 932000*12%*9/12= $83880

The Completed lost of Library = 1141000+83880= $1224880

8 0
3 years ago
Listed below are a few events and transactions of Kodax Company.
oksian1 [2.3K]

Answer:

Year 1

Jan. 2 Purchased 82,000 shares of Grecco Co. common stock for $546,000 cash. Grecco has 246,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax.

Dr Investment in Grecco Co. 546,000

    Cr Cash 546,000

Sept. 1 Grecco declared and paid a cash dividend of $1.30 per share.

Dr Cash 106,600

     Cr Investment in Grecco Co. 106,600

Dec. 31 Grecco announced that net income for the year is $510,900.

Dr Investment in Grecco Co. 170,300

     Cr Revenue from investment in Grecco Co. 170,300

Year 2

June 1 Grecco declared and paid a cash dividend of $3.20 per share.

Dr Cash 262,400

     Cr Investment in Grecco Co. 262,400

Dec. 31 Grecco announced that net income for the year is $740,400.

Dr Investment in Grecco Co. 246,800

     Cr Revenue from investment in Grecco Co. 246,800

Dec. 31 Kodax sold 13,000 shares of Grecco for $99,500 cash.

each share is worth = $7.2695

Dr Cash 99,500

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7 0
3 years ago
In 1 or 2 sentences, define an externality and explain how the government makes companies take responsibility for negative exter
tamaranim1 [39]

In economics an externality is the cost or benefit that affects someone who did not choose this. It is the true cost of a product that can be both positive or negative. Pollution can be an example of this. An educated labor force producing more is a positive example of this. The government rewards positive externality and punishes negative externality. Rewards can be surpluses and taxes can be punishments.

7 0
2 years ago
William wants to have a total of $8000 in two years so that he can put a hot tub on his deck. He finds an account that pays 5% i
aev [14]
He needs to put 7600
6 0
3 years ago
Certain contracts, such as those involving the sale of personal property for $500 or more:_______.
djverab [1.8K]

Answer:

B. Must be written to be enforceable

Explanation:

In the United state, sale of personal property for $500 or more must be written to be enforceable. These kind of contracts are said to be within the statute of fraud.

These types of contracts are called Sales contracts which is an agreement between the buyer and seller. For the amount of money involved, a written contract provides security and peace to the mind of all those involved in the contract, hence why deals above $500 must be written to be enforceable.

8 0
3 years ago
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