Amortizing a loan P over n periods at i% interest / period, the payment per period is given by:
In given situation,
P=20000
period=month
i=10%/12
n=5*12=60 months
A. monthly payment amount
to the nearest cent
B. EAR (effective annual rate)
the APR is 10%, but compounded monthly.
So
EAR=(1+i/12)^12-1
=(1+0.1/12)^12-1
=0.104713
=10.4713% (effective annual rate)
Answer:
$6,666.67 and $10,000
Explanation:
The computation of the depreciation expense for the year 2017 and 2018 is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($88,000 - $8,000) ÷ (8 years)
= ($80,000) ÷ (8 years)
= $10,000
Since the machinery is purchased on April 30 and we assume the books are closed on December 31 so the number of months calculated is 8 months
Therefore for the year 2017 the depreciation expense is
= $10,000 × 8 months ÷ 12 months
= $6,666.67
And, for the year 2018 the depreciation expense is same i.e $10,000
Complete Question:
What are the benefits of a long-term bond over a short-term bond?
Answer:
c. While long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
Bonds are generally debts, which may be floated in different ways with respect to the issuer of the bond and its type. Bonds are used by government and corporate institutions to borrow money with interest and they also have to pay for the face value of the bonds at maturity.
Bonds are classified into two (2) main categories and these are;
I. Long-term bonds: they usually spread over a long period of time and as such locking the money of an investor down while availing them a higher interest rate. Also, they are considered to be more riskier than shorter bonds.
II. Short-term bonds: this type of bond mature quickly and as such paying the investor's principal on time. It covers a period of one to five years maximum in duration.
Hence, the benefits of a long-term bond over a short-term bond is that, while long-term bonds have more risks associated with them, they have the potential to bring in higher returns for the initial investment.
Answer:
q1 = 910
q2 = 910
Explanation:
Given:
Q = 2800 - 1000p
Marginal cost = $0.07 per unit
Q = 2800 - 1000p
Let's calculate profit of firm 1:
TR = p1 q1
MR = MC = 0.07
Cross multiplying:
2800 - 2q₁ - q₂ = 70
2800 - 2q₁ = 70 + q₂
2800 - 70 - 2q₁ = q₂
2730 - 2q₁ = q₂...............(1)
Let's calculate profit of firm 2:
TR = p₁ q₂
MR = MC = 0.07
Cross multiplying:
2800 - q₁ - 2q₂ = 70
2800 - 2q₂ = 70 + q₁
2800 - 70 - 2q₂ = q₁
2730 - 2q₂ = q₁................... (2)
Substitute 2730 - 2q₂ for q₁ in (1)...
Thus:
2730 - 2q₁ = q₂
2730 - 2(2730 - 2q₂) = q₂
2730 - 5460 + 4q₂ = q₂
-2730 + 4q₂ = q₂
-2730 = q₂ - 4q₂
-2730 = - 3q₂
q₂ = -2730/-3
q₂ = 910
Substituting 910 for q₂ in (2):
2730 - 2q₂ = q₁
2730 - 2(910)= q₁
2730 - 1820 = q₁
910 = q₁
q₁ = 910
The Cournot equilibrium quantities are: q₁= 910; and q₂ = 910
Answer: The income statement should reflect $15,000.
Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.
