Read the following sources and decide which have characteristics of reliable and unreliable information.

An amount of $2,500 is deposited in a savings account that earns 2.5% interest. Which is the future value

Lynna [10]

Answer:

$3,208

Explanation:

The computation of the future value is shown below;

As we know that

Future valie = Present value × (1 + rate of interest)^number of years

where

Present value is $2,500

Rate of interest = 2.5% ÷ 4 = 0.625%

And, the time period is = 10 × 4 = 40

So, the future value is

= $2,500 × (1 + 0.625%)^40

= $3,208

5 0

2 years ago

A company has bonds outstanding with a par value of $100,000. The unamortized premium on these bonds is $2,700. If the company r

Lunna [17]

Answer:e. $3,700 gain.

Explanation:

Par value of Bonds =$100,000

Unamortized premium= $2,700

Carrying/ Book value of bonds= Par value of Bonds +Unamortized premium

= $100,000 + $2,700 =$102,700

Amount at which bonds retired $100,000 x 99% = $99,000

Gain on retirement of bonds =Book value of bonds- Amount at which bonds retired

=$102,700- $99,000 = $3,700

4 0

2 years ago

Which of the following are microeconomic problems? (You may select more than one answer.)(a) Work/leisure choice.(b) Marketing s

Ksivusya [100]

Answer:

(a) Work/leisure choice

(b) Marketing strategy

Explanation:

Microeconomic issues relate to those that are within the scope and power of individuals, households and firms which means that problems here will relate to decisions that these participants make in relation to resource allocation.

Choices relating to leisure or work have to do with the individual and the resources they would need or derive from either work or leisure and so are a microeconomic problem.

The marketing strategy that a firm should pursue is related to an individual firm and so is a microeconomic problem as well.

8 0

3 years ago

You meet a friend of yours for lunch. He is a supplier of coffee machines. While talking business, you mention to him that you'v

9966 [12]

Answer and explanation:

There are several factors to be considered at the moment of setting the price of a good or service that is going to be offered. Raw materials, production costs per unit, and labor are the most common. However, setting the price based on the competitors seems vague. An organization cannot depend on this matter strictly of another organization since the reasons for getting to the competitors' price is unknown.

Basing the price of a product based on demand and supply could be a good option. It will imply the price level will fluctuate according to market requests. By doing this, companies make sure to keep their expected revenues almost the same regardless of what competitors might be doing.

5 0

2 years ago

Northern Company has bonds with an amortized cost of $600,000. At the end of the first reporting period, the bonds had a fair va

Helen [10]

Answer:

we are not given any options, so I will show you the adjusting journal entry:

Dr Investment in bonds 75,000

Cr Unrealized holding gains 75,000

Northern actually made a profit by simply holding these bonds since they appreciated from $600,000 to $675,000, but it cannot record the gains immediately until they are sold. That is why unrealized holding gains is credited.

6 0

2 years ago