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Ulleksa [173]
3 years ago
7

On March 1, 20X4, Fine Co. borrowed $10,000 and signed a two-year note bearing interest at 12% per annum compounded annually. In

terest is payable in full at maturity on February 28, 20X6. What amount should Fine report as a liability for accrued interest at December 31, 20X5?
Business
1 answer:
Marrrta [24]3 years ago
6 0

Answer:

$2,320

Explanation:

the interest accrued by February 28, 20X5 = $10,000 x 12% = $1,200

since the interest compounds yearly, the interest accrued by December 31, 20X5 =  ($11,200 x 12% x 10/12) + $1,200 = $1,120 + $1,200 = $2,320

Compound interest means that earned interest will earn more interest itself in the next period. That is why you need to include the previously accrued interest in the interest calculation for the second part.

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fredd [130]

Answer: Congress gives too many tax breaks to corporations.

Explanation:

Normative statements are said to be statement of opinion and not fact.

Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.

The other options are statements of fact.

8 0
3 years ago
Identify 3 reasons why we should teach financial education.
Sophie [7]

Answer:

Why should financial education be taught in schools?

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Should financial literacy be taught in schools essay?

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4 0
2 years ago
Liliana needs to furnish her new apartment. She found all the items she wanted on the manufacturer's website and can save over $
maw [93]

Answer: The price that Liliana will pay for shipping the furniture may be higher than the amount she saved.

Explanation:

Liliana wants a new furniture for her apartment which she found on the website of the manufacturer. From the information given in the question, we were informed that she will save $500 when she buys from the manufacturer directly.

From the information provided, the deal is good since she'll save $500 but the only thing that might stop her from making the purchase is when the shipping fee is more than the $500 she'll save. In that case, buying the furniture isn't really worth it as other options may be considered.

8 0
3 years ago
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Bond [772]
This is a true fact, what is the question though?
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lara [203]

Answer:

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On the other hand, a positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.

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