Certificates of Deposit (CDs), U.S Treasury Bills, and savings accounts are generally regarded as the least risky investments, given that they are backed - at least up to a certain limit - by the U.S government.
CDs are essentially fixed-term savings accounts, which means you must deposit your funds for a set amount of time, until the account reaches what is called "maturity." Withdrawing funds before this point typically leads to a fee. In return for sacrificing liquidity, CDs tend to offer higher interest rates than normal savings accounts. These rates are most often fixed, though they sometimes come with a feature that enables you to readjust your interest rates once over your account's lifetime. Bank-issued CDs are also insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor, though this figure has dropped to $100,000 January 1, 2014. Credit Union-issued CDs are insured by another government agency, the National Credit Union Administration (NCUA), which provides the same coverage as the FDIC.
U.S Treasury Bills are sold by the government to investors as a way to fund short-term government debts. If you purchase a U.S Treasury Bill, you are basically loaning the government a certain amount of money in return for the government's promise to pay you back with a predetermined higher amount when the bill reaches maturity. U.S Treasury Bills are typically issued with maturity terms of one month, three months, six months and 1 year.
As we all know, savings accounts are offered by banks and credit unions and provide variable interest rates, which means their rates fluctuate in accordance with the Prime Rate. While there is no time requirement for a savings account, as there is with a CD, the law only allows consumers to make up to six transfers or withdrawals from a savings account per month (not including in-person ATM or branch withdrawals). Savings accounts offer the same as insurance protections as CDs.
Hope this helps you =)
Answer:
The present value of your winnings is <u>$1,959,555.65</u>.
Explanation:
Since this is an annuity due as already hinted in the question, the formula for calculating the present value (PV) of an annuity is used as follows:
PV = P × [{1 - [1 ÷ (1 + r)]^n} ÷ r] × (1 + r) .................................. (1)
Where ;
PV = Present value of winnings =?
P = Annual payment = $200,000
r = interest rate = 9.25%, or 0.0925
n = number of years = 20
Substituting the values into equation (1) above, we have:
PV = $200,000 × [{1 - [1 ÷ (1 + 0.0925)]^20} ÷ 0.0925] × (1 + 0.0925)
PV = 200,000 ×8.96821807613347 × 1.0925
PV = $1,959,555.65
Therefore, the present value of your winnings is <u>$1,959,555.65</u>.
Answer: (D) enter; rightward
Explanation: As new firms enter the market, there is a shift in the supply curve to the right, decrease in market prices and decrease in economic profit.
Answer:
$775
Explanation:
In inventory valuation , inventory are valued at the lower of cost to replace an item of inventory and the net realizable value.
The net realizable value is the proceed earned from the disposal of an inventory less the cost related to the disposal.
In the scenario described in the question , The replacement cost for product 66 is $775 while the net realizable value is $800. Therefore , the final inventory valuation will be the lower of $775 and $800 which is $775
Answer:
predetermined overhead allocation rate is 12 per direct labor hour
Explanation:
given data
indirect costs = $102000
labor time = 8500 hours
cost of labor = $60 per hour
to find out
predetermined overhead allocation rate
solution
we find here predetermined overhead allocation rate by given formula that is
predetermined overhead allocation rate = indirect costs / labor time .............1
put here value in equation 1 to get rate
predetermined overhead allocation rate = indirect costs / labor time
predetermined overhead allocation rate = 102000 / 8500
predetermined overhead allocation rate = 12
so predetermined overhead allocation rate is 12 per direct labor hour
