Answer:
Interest expense accured = $121.33 (
Explanation:
The exact number of days from July 2 through December 31, 2013 is 182 days.
The accrued interest (182/360) x $4,000 x 6% = $121.33
Answer:
Po = <u>D1</u> + <u>D2</u> + <u> D3</u>
(1 + Ke) (1 + Ke)2 (1 + Ke)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28
</u>
(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3
Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>
1.1 (1.1)2 (1.1)3
Po = $10.91 + $10.33 + $21.04
Po = $42.28
Explanation:
The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.
Help the child see that they themselves can answer what will happen if they come across a situation like so
Answer:
Annual payment= $3,250.77
Explanation:
Giving the following information:
You are thinking of purchasing a home. The house costs $300,000. You have $43,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 6% per year.
FV= 300,000 - 43,000= $257,000
i=6%
n= 30
Annual payment= ?
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (257,000*0.06)/{[1.06^30]-1}= $3,250.77
Answer:
Unlimited printing of money will cause the problem of inflation.
Explanation:
Inflation is a general increase in the price of goods and services.
It can be caused by the following:
Demand-pull inflation - This type of inflation is caused by an excess demand for goods and services by consumers without commensurate supply from suppliers.
Cost-push inflation - This type of inflation is caused by an increase in the price of goods and services.
Lastly, out of others, I will like to discuss inflation caused by unlimited printing money.
I sometimes wonder why the country cannot just prompt money so that we can all be smiling and spending cash together. The fact is that this will reduce the purchasing power of money because it is in excess and ultimately leads to inflation.
When there is unlimited printing of money in a country, the cash in the circulation will be in excess, hence more money will be needed to buy few product. That is an indication of inflation.
