Denote the principal amount: P
In 25 years, a bond with a 4.75% annual interest rate earned $2,375 as interest.
=> P x (1 + 4.75/100)^25 - P = 2375
=> P x 3.19 - P = 2375
=> P x 2.19 = 2375
=> P = 2375/2.19 = 1084.48$
The principal is most commonly used to refer to the original amount borrowed on a loan or invested in an investment. It can also refer to the face value of a bond, the owner of a private company, or a key participant in a transaction.
Suppose you buy a home for $ 300,000 with a 20% down payment. In this case, you will pay back $ 60,000 on your loan. The mortgage lender then pays $ 240,000, which is the cost of the loan balance. In this case, the principal balance will be $ 240,000.
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Answer: $19037
Explanation:
The following can be deduced from the question:
Balance per Bank statement = $18361
Add: Deposits in Transit = $1450
Add: Bank error = $63
Less: Outstanding check = $837
Adjusted cash Balance per Bank:
= ($18361 + $1450 + $63) - $837
= $19874 - $837
= $19037
The adjusted cash balance per the bank records should be $19037.
N.B: The bank error was gotten as the difference between $92 and $29. $92 - $29 = $63
Answer:
1. Capital
Explanation:
Capital refers to the resources that are used to generate value. This, through the manufacture of other goods or services or by obtaining profits or profits on the possession or sale of securities.
Capital is one of the four factors of production along with land, labor and technology. It is characterized by understanding all durable goods that are destined to the manufacture of other goods or services. Thus, for example, an oven is part of the capital of a baker since he uses it to cook bread (another good) and the services he delivers will last for several years.
To produce goods or services, capital must be combined with other productive factors. The precise combination will depend on the technology used and the characteristics of the good or service produced.
Capital increases the productivity of the other productive factors. However, if capital remains fixed and the rest of the factors increase, the productivity increase will be decreasing (marginal productivity law decreasing).
Capital also refers to the financial resources that are invested in a given project for manufacturing or selling services. In addition, interest gains or other financial gains are also considered capital
Answer:
left as well as the contractionary monetary policy, then bring about the
increase of interest rate as well as reducing equilibrium quantity of money.
Explanation:
Liquidity Preference model can be regarded as a model gives suggestions about investor and interest rate, the model entails that high interest rate as well as premium on securities associated with long-term maturities with higher risk should be demanded by investors, reason behind this suggestions is that most investors will always go for cash as well as available highly liquid holdings, all things been equal. It should be noted that Using the liquidity-preference model, the Federal Reserve can react to the threat of exceedingly high inflation via monetary policy by shifting the supply of money to the left as well as the contractionary monetary policy, then bring about the increase of interest rate as well as reducing equilibrium quantity of money.
