Answer:
Company quotes an interest rate 17 percent on one-year loans.
Explanation:
Borrow value=$34000
interest rate of company in one year=17 percent
Total interest in a year =$34000×
total interest=$5780
Total payment in one year=$34000+$5780
Total payment=$39780
You will pay $39780/12 or $3315.00/month according to company statement.
 
        
             
        
        
        
Your answer should be: "There is not enough information to answer." Hope I helped! :)
        
             
        
        
        
Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a <u>moral hazard.</u>
Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;
However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.
 
        
             
        
        
        
Answer:
Stock is valued at lower of : cost or market price [prudence principle] 
Explanation : 
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses. 
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle. 
 
        
             
        
        
        
A = Pe^(rt) 
<span>A = 5e^(0.02)(8) = 5.87 billion </span>