Answer:
r = 9.86%
Explanation:
The formula for calculating the future value of an invested amount yielding a compound interest is given by:
where:
FV = future value = $16,000
PV = present value = $10,000
r = interest rate = ?
n = number of compounding period per year = 1
t = time in years = 5
∴ 
dividing both sides by 10,000
to remove the power of 5, we have to take the 5th root of both sides:
Using your calculator:
1.09856 = 1 + r
∴ r = 1.09856 - 1 = 0.09856
r = 0.0986 = 9.86%
∴ r = 9.86%
Let say A,B&C and the ratio is 3:5:12
3+5+12=20
250000divide by 20 = 12500
12500x3=37500
12500x5=62500
12500x12=150000
So A invested 37500
B invested 62500
C invested 150000
Answer and Explanation:
The journal entries are shown below;
On Jan 1, 2020
No journal entry is required
On Dec 31, 2020
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
On Dec 31, 2021
Compensation expense Dr ($150,000 ÷ 2) $75,000
To paid in capital stock option $75,000
(Being compensation expense is recorded)
