Answer:
Initially, the purchasing power of Amy's $3,000 deposit is <u>150</u> comic books.
annual inflation rate number of comics Amy can purchase
0% ($3,000 x 1.15) / $20 = 172.5 ≈ <u>172 comics</u>
10% ($3,000 x 1.15) / ($20 x 1.1) = 156.8 ≈ <u>156 comics</u>
13% ($3,000 x 1.15) / ($20 x 1.13) = 152.6 ≈ <u>152 comics</u>
real interest rate:
with 0% inflation rate = <u>15%</u>
with 10% inflation rate = <u>5%</u>
with 13% inflation rate = <u>2%</u>
Explanation:
Answer:
Amos Company
Statement of retained earning
as on December 31, 2017
Retained Earning December 31, 2016 $859,000
Add: Net Income for 2018 $223,000
Dividend -$29,000
Prior years error adjustment <u>-$37,600 </u>
Retained Earning December 31 <u> $1,015,400</u>
Explanation:
Retained Earning is an equity account and its balance is credit in nature. It is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Omission of depreciation expense understated the expenses for the year and overstated the profit of 2015, which ultimately overstated the retained earning value. we need to adjust this error in retained earning balance because it is adjustment of an prior year error, it will not be included in the current years net income calculations. It already netted off so we just simply adjust it in the retained earning with the value of $37,600.
"Choose to do nothing about the issue" is the one among the following choices given in the question that <span>is one course of action available in every decision making process. The correct option among all the options that are given in the question is the third option or option "c". I hope the answer has come to your help.</span>
Answer:
12.38% decrease
Explanation:
Given the following parameters
6%
Number of years = 12
Market yield I= 6 === 4.5
Present Value = 916.16 == 1045.59
PMT (annuity payment) = 50 (5%x1000)
Future value = 1000
Therefore, to solve for the percentage change, we have in the price of this bond in this situation, we have (916.16-1045.59) / 1045.59 = -0.1238
Hence, 12.38% decrease is the percentage change in the price of this bond if the market yield rises to 6% from the current yield of 4.5%,
