The balance sheet for Appalachian Corporation at the end of the current year includes the following:

You just received an offer in the mail to transfer your $5,000 balance from your current credit card, which charges an annual ra

NARA [144]

Answer:

number of payment is 3.05 payment

so correct option is b 3.05 payments

Explanation:

balance = $5000

annual rate r1 = 18.7 % = $\frac{0.187}{12}$ = 0.01558

credit card charging r2 = 5.9% = $\frac{0.059}{12}$ = 0.004917

payments P = $250 month

to find out

How many fewer payments will you have to make to pay off this debt if you transfer the balance to the new card

solution

we first find time t both rate by total balance formula that is

balance = $P * \frac{1-(1+r)^{-t}}{r}$ ...........................1

here P is payment and t is time and r is rate

put here all value and find t for r1

balance = $P * \frac{1-(1+r)^{-t}}{r}$

5000 = $250 * \frac{1-(1+0.01558)^{-t}}{0.01558}$

take log both side

log 0.6884 = log 1 - log $(1+0.01558)^{t}$

t = 24.1519 .................2

and now put here all value and find t for r2

balance = $P * \frac{1-(1+r)^{-t}}{r}$

5000 = $250 * \frac{1-(1+0.00492)^{-t}}{0.00492}$

take log both side

log 0.9016 = log 1 - log $(1+0.00492)^{t}$

t = 21.1055 .....................3

so by equation 2 and 3

so no of payment will be 24.1519 - 21.1055

so number of payment is 3.05 payment

so correct option is b 3.05 payments

7 0

3 years ago

Distinguish between positive and negative confirmations. Under what circumstances would positive confirmations be more appropria

Serhud [2]

Negative confirmation is more frequently employed when the records of the person or business are usually thought to be quite accurate.

<h3>What is the difference between negative and positive confirmations?</h3>

Only when the customer disagrees with the amount owed to the client is a negative confirmation requested. When an account has substantial individual balances or when errors are anticipated due to a high control risk, positive confirmations are typically used.

Negative confirmation is more frequently employed when the records of the person or business are usually thought to be quite accurate. The corporation that receives a negative confirmation is typically thought to have strict internal policies and business procedures. As a result, since auditors typically only need to send out one letter, negative confirmation is far less expensive and time-consuming for them.

Positive confirmation requests, on the other hand, are more complicated since financial documents must be provided, even if the information in the original letter was accurate. Additionally, if there are doubts about the accuracy of the company's books, positive confirmation requests are more likely to be used.

However, because it is more precise and makes sure that everyone is on the same page—or has the same financial information—a positive confirmation letter is more typical in complex transactions. For instance, auditors in lending employ affirmative confirmations from banks and businesses to determine the precise amount of a loan.

Because it is a specific request that the recipient has responded to, a positive confirmation typically represents the financial information better than a negative confirmation. A positive confirmation is tangible proof that the information was confirmed in the event of a disagreement.

To learn more about negative and positive confirmations refer to:

brainly.com/question/15908185

#SPJ4

7 0

2 years ago

Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocol

Zanzabum

Answer:

Cannot be determined

Explanation:

If the marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18.

For it to be determined if Adhira is maximizing her utility, we need to compare the different units of utility per product to the individual prices of the product.

The Utility Maximization rule states that <u>consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility</u>.

It is marginal utility per dollar spent that is equalized. and not absolute utility.

6 0

3 years ago

A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume an

Mamont248 [21]

Answer:

bondholders will receive 8% of $1,000 = $80

Explanation:

The price of the bond varies depending on the yield to maturity, resulting in higher or lower gains for bondholders, but the actual cash amount received will always be equal to the coupon rate.

The same applies to the issuer of the bond, it may receive more or less money depending on the market rate, which increases or decreases interest expense, but the amount of money paid is always the coupon rate.

8 0

3 years ago

Wind Power Systems has semi-annual bonds outstanding with a 5 percent coupon that will mature in 20 years. The face amount of ea

Mashcka [7]

Answer:

the pre tax cost of debt is 3.98%

Explanation:

The computation of the pre tax cost of debt is shown below;

Pre tax cost of debt is

= (Annual interest + (par value - market price) ÷ (number of years) ÷ (par value + market price) ÷ 2

= (0.05) + ($1,000 - $1,140) ÷ (20) ÷ ($1,000 + $1,140) ÷ 2

= 3.98%

Hence, the pre tax cost of debt is 3.98%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

5 0

3 years ago