1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paladinen [302]
3 years ago
12

Greenwell Farm Equipment sells a tractor to Farmer for $130,000 on January​ 1, 2019. The tractor is delivered that day. Greenwel

l agrees that the Farmer may delay the payment for 2 years. The market rate of interest is 10​%. Refer to Greenwell Farms. How much interest revenue will Greenwell report over the life of this​ contract? (Do not round intermediary​ calculations, and round your final answer to the nearest whole​ number.) Use the formula approach
Business
1 answer:
agasfer [191]3 years ago
7 0

Answer:

Present value of interest is $5,062 and future value is $5,796        

Explanation:

The formula for finding the Present value of the interest reported as revenue is calculated as under:

Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2

Present Value of $40,000 receivable in 2 years = $34,938

The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:

Interest Present value = $40,000 - $34,938 = $5,062

Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years

Future value of interest = $5796

You might be interested in
Janet needs to assign a very important advertising account to one of her writers. First she reviewed each​ writer's work​ load,
S_A_V [24]

Answer:

D. systematic study

Explanation:

7 0
3 years ago
​(Yield to​ maturity) The market price is ​$725 for a 16​-year bond ​($1 comma 000 par​ value) that pays 9 percent annual​ inter
wlad13 [49]

Answer:

13.16%

Explanation:

In this question we use the RATE formula i.e shown in the attached spreadsheet

Given that,  

Present value = $725

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 9% ÷ 2 = $45

NPER = 16 years × 2 = 32 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 6.58% × 2 = 13.16%

6 0
3 years ago
​Traditionally, Fed policymakers have been​ ________ to use higher interest rates to head off potential asset bubbles​ ________.
r-ruslan [8.4K]

Answer:

D) ​hesitant; because it may cause a slowdown in the economy

Explanation:

The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.

Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.

5 0
3 years ago
Identify the business manager who first "discovered" the beatles, changed their stage look from leather to matching suits, and s
Yuki888 [10]
SOUJI BOY BECUASE HE MALES MAGIC HAPPEN 


8 0
3 years ago
I prefer situations where everyone has to work together to reach a goal. Agree or Disagree?
Cloud [144]
Agree, since two minds work better than one.
4 0
3 years ago
Other questions:
  • Forest Products is a mill that has always successfully resisted unionization of its workers by offering better pay and benefits
    13·2 answers
  • The value of the cpi's "market basket" is determined by ________.
    8·1 answer
  • A company can protect its competitive position under __________, which gives inventors the right to exclude others from making,
    8·1 answer
  • A woman plans to work for 25 years and to make deposits into a retirement fund at the amount of 100 at the end of each month. Th
    13·1 answer
  • Where on a check should you write the name of the payee?<br> part A<br> part B<br> or part C
    10·2 answers
  • Spencer Supply’s stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a
    7·1 answer
  • This document outlines the rules and regulations with regards to developers using brokerage services to 'test the market' for a
    13·1 answer
  • At the beginning of 2018, Artichoke Academy reported a balance in common stock of $168,000 and a balance in retained earnings of
    12·1 answer
  • Design Math Quiz
    11·1 answer
  • Which view is represented below?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!