Economic profit is calculated as:
Economic profit = Total Revenues – Total Cost
Total cost both includes explicit and implicit cost. In
this case, the explicit cost is $8,000 while the implicit cost is $64,000.
Explicit cost is a direct payment made to run the business while implicit cost
is the opportunity as accountant that is lost. Therefore,
Economic profit = $150,000 – ($8,000 + $64,000)
<span>Economic profit = $78,000</span>
Answer:
the answer C
Explanation:
As long as the documents strickly comply with the letter of credit requirements, the bank will not have to reimburse the buyer
b. If there is fraud in the transaction, the bank will have to reinburse the buyer and seek its remedies against the seller
c. The strick compliance insulates the bank from liability, since it assures the bank that the underlying contract between the buyer and seller is entirely independent from the letter of credit contract
<span>a document that describes all of the assets covered</span>
Answer:
effective annual coupon rate = 10.77 %
Explanation:
given data
Coupon Rate = 10.50%
Type of Compounding = Semiannually
Number of Payments in a Year (n) = 2
solution
we get effective annual coupon rate that is
effective annual coupon rate = ............................1
put here value and we get
effective annual coupon rate =
effective annual coupon rate = 0.107756
effective annual coupon rate = 10.77 %
Answer:
Amount due is $1,256.14
Explanation:
Calculation of the interest to date at time of 1st partial payment
I1=PRT1
I1= 3,000 * 0.11 * 31/360
I1= $28.42
Remaining Principal = Principal + Interest - Payment
P1 = 3,000 + 28.42 - 875
P1 = $2,153.42
Calculation of the interest to date at time of 2nd partial payment
I2 = P1RT2
I1= 2,153.42* 0.11 * 47/360
I1= $30.93
Remaining Principal = Principal + Interest - Payment
P2= 2,153.42 + 30.93 - 940
P2= $1,244.35
Calculation of the remaining interest on the maturity date
I3= P2RT3
I3= 1,244.35 * 0.11 * 0.31/360
I3= $11.79
Amount due = Remaining Principal + Interest
P3= 1,244.35 + 11.79
P3= $1,256.14
Thus, the amount due is $1,256.14