Why do people keep money in transaction accounts?
1 answer:
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Answer:
The interest rate is "21.999%".
Explanation:
The given values are:
Amount lent,
= 10,000
Amount repaid,
= 27,027
Years (n),
= 5
As we know,
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On substituting the given values, we get
⇒
⇒
⇒
⇒
⇒
On subtracting "1" from both sides, we get
⇒
⇒
i.e.,
⇒
Answer:
See the attached photo for the completed the schedule.
Explanation:
Note: See the attached photo for the completed the schedule.
In the attach excel file, the following formulae and calculations are used:
Peferred stock dividend per share = Total cumulative preferred stock dividend paid in a year / Number of cumulative preferred shares
Common stock dividend per share = Total common stock dividend paid in a year / Number of common shares
Total cumulative preferred stock dividend = Number of cumulative preferred stock * Par value * Dividend rate = 2,500 * $100 * 10% = 2,500 * $100 * 10% = $25,000
Outstanding cumulative preferred stock dividend in Year 1 = Total cumulative preferred stock dividend - Total cumulative preferred stock dividend paid in Year 1 = $25,000 - $10,000 = $15,000
Outstanding cumulative preferred stock dividend in Year 2 = Outstanding cumulative preferred stock dividend in Year 1 = $15,000
Total cumulative preferred stock dividend paid in Year 3 = Total cumulative preferred stock dividend + Outstanding cumulative preferred stock dividend in Year 2 = $25,000 + $15,000 = $40,000
Total common stock dividend paid in Year 3 = Dividend distributed in Year 3 - Total cumulative preferred stock dividend paid in Year 3 = $60,000 - $40,000 = $20,000
