Solution:
Given ,
1 Year interest rates in Europe = 4 %
1 Year interest rates in the U.S. = 2 %
You are translating $200,000 and spending $200,000 in French
Current spot rate of the euro = $1.20
a. (2%-4%)/(1+4%)=(S - 1.20) / 1.20
S= $1.1769 one year Euro rate
b. ( $1 / 1.20 )( 1 + 4% )* 1.12 = $.9707 return of -2.93% (loss)
c. ( $1 / 1.20) ( 1 + 4%)* 1.31 = $1.1353 return of 13.53% (gain)
d . ($1 / 1.20) ( 1 + 4%) *S = $1 (1+2%) ;
S=$1.1769
A spot rate of over $1.17697 (this is the same in part A) would be effective.
Work performance information and cost forecasts are the main outputs of cost control.
<h3 /><h3>What is cost control?</h3>
It is the set of practices that assist in the control and organization of financial resources, in order to establish a budget that is a useful tool for greater understanding of income and expenses and greater coordination of the correct allocation of finances to fulfill your needs and for the achievement of objectives and goals.
In a company, cost control will help in effective positioning in the short and long term, helping to correctly understand the company's financial situation in a period, in addition to helping in the forecast of costs, expectations and planning as a whole.
Therefore, cost control is a set of tools that assists in the budget control of a company or an individual, being positive for the best organization of finances.
Find out more about budgeting here:
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Answer and Explanation:
Journal entry to record the issuance of the bonds.
A.
Jan 1
Dr cash $500,000
Cr bonds payable $500,000
B. Journal entry to record the accrual of the interest
Dec 31 2020
Dr Interest expense $25,000
Cr Interest Payable $25,000
C. Journal entry to record the payment of interest on January 1, 2021.
Dr Interest expense $25,000
Cr Cash $25,0000
Interest expense $500,000×10%×1/2=$25,000
Answer:
=$11,580.00
Explanation:
The CD pays 4.9 percent compounded monthly for four years.
In one year, there will be 12 occasions of compounding; after four years, there would be 12 x 4 = 36 compounds.
The interest rate per year is 4.9 percent; monthly interest will be 4.9 /12, which is 0.4083 percent.
The amount in four years is the same as the future value after four years.
=FV = PV (1+r)n
Pv =$10,000
r=0.4083 %
N =36
Fv = 10,000(1+0.4083/100)36
=10,000(1+0.004083)36
=$10000 x 1.1579932
=$11,579. 932
=$11,580.00
B. Your banker is not aware of your of your other long term financial goals
