In finance and economics, interest is the payment of an amount above the repayment of the principal sum by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate by a borrower or depositor.
It differs from a fee that the borrower may pay to the lender or a third party.

To find the higher interest rate:

Given that,

Interest rate per month = 0.25%
Interest rate per quarter = 0.75%

If we calculate the annual interest for monthly and quarterly rates, it will be:

Monthly

No. of months in a year = 12
Monthly rate = 0.25%

So,

Annual Interest = 0.25 × 12
= 3%

Quarterly

No. of quarters in a year = 4
Quarterly rate = 0.75%

So,

Annual Interest = 0.75 × 4
= 3%

Therefore, both have the same interest rate which is 3%.

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4 0

1 year ago

can produce two types of light fixtures, the indoors model and the outdoors model. if the total sales are expected to be 21,050

mars1129 [50]

Answer:

$1,000,000

Explanation:

The computation is shown below:

<u> Particulars Indoors Model Outdoors Model Total </u>

No of Units

(21,050 in ratio 2:3) 8,420 12,630 21,050

Sales 1,263,000 2,778,600 4,041,600

Less: Variable costs 168,400 505,200 673,600

Contribution margin 1,094,600 2,273,400 3,368,000

Less: Fixed costs

(2,160,000 + 208,000) 2,368,000

Operating Income 1,000,000

7 0

2 years ago

During 2016, Chun's Book Store paid $485,000 for land and built a store in Cleveland. Prior to construction, the city of Clevela

Oksana_A [137]

Answer:

Journalize transactions for the following:

a. Purchase of the land

Dr Land 485,000

Cr Cash 485,000

b. All the costs chargeable to the building in a single entry

Dr Building 735,020

Cr Cash 735,020

The building accounts includes the $690,000 (construction costs) + $28,300 (capitalized interests) + $1,400 (building permit) + $15,320 (architect's fees).

c. Depreciation on the building for 2016 Explanations are not required.

Dr Depreciation expense 5,686

Cr Accumulated depreciation 5,686

Only the building is depreciated, land is not. Depreciation expense per year = ($735,020 - $337,000) x 1/35 = $11,372. Since Chun can only depreciate half a year, the depreciation expense will be $5,686.

Report Chun's Book Store's plant assets on the company's balance sheet at December 31, 2016.

Land $485,000

Building $729,334

What will Chun's income statement for the year ended December 31, 2016, report for these facts?

nothing, since interests were capitalized

4 0

2 years ago