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lianna [129]
3 years ago
13

The following 6%, $1,000 notes were issued on November 1. Which of the following is the correct method of calculation for the in

terest accrued as of December 31 of the same year on each of the notes described?a. Interest on 4-month note is colculated os: $1,000 × 6% × 2 / 12b. Interest on 3-month nate is calculated as, $1,000 x 6% x 2 /3.c. Interest on a 4-month note is calculated as: $1,000 6% 2 / 4d. Interest on 2-year note is calculated es: $1,000 x 6% x 2 / 24.
Business
1 answer:
Ainat [17]3 years ago
4 0

Answer:

A) Interest on 4-month note is calculated as: $1,000 × 6% × 2 / 12

Explanation:

First of all, the 6% interest is annual, so any interest accrued must be calculated using periods equivalent to 1/12.

Then the time is only 2 months (November and December)

The only option that fits is A:

principal ($1,000) x 6% (interest rate) x 2/12 (2 periods) = $10

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4 years ago
If a country has an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that goo
ohaa [14]

Answer:

Correct option:

an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good

Explanation:

If a country has

  • an absolute advantage in producing a good, it definitely also has a comparative advantage in producing that good.
  • an absolute advantage in producing a good, it might or might not have a comparative advantage in producing that good
  • a comparative advantage in production of a good, it must also have an absolute advantage in producing that good.
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  • None of these answers is correct.

the absolute advantage refer to the quantity of output of a certain good.

if country A does 100 and B 50

then, A has an absolute advantage as it can out produce B

the competitive advantage will when the opportunity cost of making a cartain product is lower than the other.

If A can do 500 of anther goods

while B can do 50

then the comparative advantage favors B

as it cost 50 /50 = 1 good to produce the produce

while for country A it cost: 500/50 = 10 goods to produce it.

GIven this analysis, the option B will be the correct

a country with an absolute advantage might or might nothave a comparative advantage as well.

6 0
3 years ago
Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f
Furkat [3]

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and  Salvage value so we get depreciation cost  

depreciation cost is = 11000 - 1000 = 10000  

and

annual depreciation = 2000  

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

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4 0
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