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Olenka [21]
3 years ago
14

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compo

unding. Which of the following statements is CORRECT?
a. The present value of the $1,000 would be larger if interest were compounded monthly rather than semiannually.
b. The periodic interest rate is greater than 3%.
c. The present value would be greater if the lump sum were discounted back for more periods.
d. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity.
e. The periodic rate is less than 3%.
Business
1 answer:
Pachacha [2.7K]3 years ago
5 0

Answer:

d. The PV of the $1,000 lump sum has a smaller present value than the PV of a 3-year, $333.33 ordinary annuity.

Explanation:

Since discounting will be more on lump sum $1000 at the end of 3 years than that for a 3-year $333.33 annuity.

The present value of the $1,000 would be smaller if interest were compounded monthly rather than semiannually. The PV of the $1,000 lump sum has a higher present value than the PV of a 3-year, $333.33 ordinary annuity .

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Home produces two goods: computers and wheat. Capital is specific to computers, land is specific to wheat, and labor is mobile b
kaheart [24]

Answer:

The appropriate answer is "capital intensive, land intensive".

Explanation:

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7 0
4 years ago
Determine whether the statement describes a descriptive or inferential statistic. a recent poll of 2707 home owners in michigan
jolli1 [7]

The average price of a house in the u.s. is $265,000. this statement describes an Inferential Statistic.

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4 0
2 years ago
Archie Co. purchased a framing machine for $45,000 on January 1, 2018. The machine is expected to have a four-year life, with a
yuradex [85]

Answer:

b. $10,000 and $25,000

Explanation:

For computing the the book value of an asset , first we have to determine the depreciation expense which is shown below"

So, under the straight-line method, the depreciation expense would be

= (Original cost - residual value) ÷ (useful life)  

= ($45,000 - $5,000) ÷ (4 years)  

= ($40,000) ÷ (4 years)  

= $10,000  

For two years, the depreciation would be

= $10,000 × 2 years

= $20,000

In this method, the depreciation is same for all the remaining useful life

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= $45,000 - $20,000

= $25,000

8 0
3 years ago
If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs for the period, t
Ilya [14]

Answer:

3. ending work in process is less than the amount of the beginning work in process inventory.

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As we know that

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And, the Manufacturing cost involves both cost i.e direct material and direct material used

If the cost of goods manufactured more than the total manufacturing costs, so automatically ending WIP inventory should be less then the beginning WIP inventory

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