To solve: use the simple interest calculation.
interest earned over the life of the bond = (bond price)(coupon rate)(years)
= (2,000)(0.04)(20)
= $1,600
So after 20 years on a 4% coupon bond starting at $2,000 Muriel will earn $1,600 in interest.
Answer:
$10,503.59
Explanation:
This question requires us to find how much you have to deposit today if:
Fv = 18,000
Time = 9 years
PV= fv/(1 + i)^n
N = 9 X 12 = 108
I/y = 0.5%
PV = $18,000 / 1.005^108
= $10,503.59
Therefore what you have to deposit today is $10,503.59
Answer:
Explanation:
When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.
Answer:
$57,000
Explanation:
<u><em>Step 1 : Depreciation Rate</em></u>
Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production
therefore,
Depreciation Rate = $14.00 per machine hour
<u><em>Step 2 : Depreciation expenses</em></u>
Depreciation expense = Depreciation Rate x Annual production
therefore
Year 1 = $42,000
Year 2 = $56,000
Year 3 = $70,000
Total = $168,000
<em><u>Step 3 : Book Value</u></em>
Book Value = Cost - Accumulated Depreciation
= $225,000 - $168,000
= $57,000
Conclusion :
book value at the end of year 3 is $57,000
Answer:
b. bait pricing
Explanation:
Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.
This is considered an illegal means of marketing.
I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.
This is bait pricing strategy.