1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Evgesh-ka [11]
3 years ago
12

Which of the following statements is FALSE?A. The effect of compounding is great over short time periods, but then it begins to

decline as the horizon grows.B. Moving cash flows to the left on a time line is called discounting, and values are additive at any one point in time.C. Future value refers to the amount of money an investment will grow to over some period of time at some given interest rate.D. To estimate the present value of future cash flows, the discount rate should be adjusted for both the timing or maturity of that cash flow and the inherent risk of that cash flow.
Business
1 answer:
Ede4ka [16]3 years ago
6 0

Answer:

The false statement is letter "A": The effect of compounding is great over short time periods, but then it begins to decline as the horizon grows.

Explanation:

Interest on interest or Compound Interest is the money accrued out of an interest rate plus all the interest earned accumulated on a certain period of time. The compound interest can be calculated on a daily, monthly or yearly basis. If the frequency of the compound interest is set in shorter periods of time, it will be more beneficial for the investor.

In that sense, option letter "A" is false since interest on interest does not decline over time but increases.

You might be interested in
Suppose it is 1810. what advice would you give tecumseh to help him be more successful in his goals than he actually was?
Mashutka [201]
I would probably urge him to engage in guerrilla warfare to be more successful in his military campaigns against the American troops and to fortify his new town Prophetstown to be better prepared against attack by American forces .
7 0
3 years ago
David is buying a new car for $21,349.00. He plans to make a down payment of $3,000.00. If he's to
marshall27 [118]

Answer: (D) 5.90%

Explanation: David is going to buy a new car at $21,349.

The down payment is $3,000.

Loan amount (Present value) = $21,349 - $3,000

Loan amount (Present Value) = $18,349

Installment amount (pmt) = $352

As the payment is made monthly (12 months in a year),

Number of payments = 5 * 12

Number of payments = 60

Using the rate option in excel,

=rate(nper,pmt,-pv,fv,type)

Insert the variables into the option, we get

=rate(60,352,-18349)

By inserting the above formula in excel we get,

Rate = 0.47%

Rate of 0.47% is monthly, to get APR

APR = (1+monthly rate)^12 - 1

APR = (1+0.0047)^12 - 1

APR = (1.0047)^12 -1

APR = 1.0586 - 1

APR = 0.0586

APR = 5.86% or 5.90%

Therefore the correct option is 5.90%.



8 0
3 years ago
Which of the following statements are TRUE about credit scores?
Fittoniya [83]
The statement that are true about credit scores are; credit scores reflect how likely individuals are to repay their debts. The credit bureau does not hide how it calculates peoples credit. The correct answer is A. 
7 0
3 years ago
Read 2 more answers
The trial balance of Sheffield Corp. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventor
Ivahew [28]

Answer:

Particulars                                                                  Amount

Beginning inventory, September 1, 2013              $18,870

Purchase                                                    $ 224,790

Less: Purchase return and allowance     <em><u>$ 5,430</u></em>

Net purchase                                             $ 219,360

Add: Freight in                                           $9,780

Cost of goods purchased                                         <u>$229,140</u>

Cost of goods available for sale                              $248,010

Less: Inventory August 31,2014                                <u>$20,100</u>

Cost of goods sold                                                   <u>$227,910</u>

6 0
2 years ago
Job 101 was completed and sold for $60,000. Job 102 was completed but not sold. Job 103 is still in process. Actual overhead cos
castortr0y [4]

Answer:

Required 1

Debit : Finished Goods  $53,600

Credit : Work In Process $53,600

Required 2

Debit : Cash $60,000

Debit : Cost of Goods Sold $55,000

Credit : Sales $60,000

Credit : Finished Goods $55,000

Required 3

Debit : Overheads $4,000

Credit : Cost of Sales $4,000

Explanation :

Hi, I have attached the full question as a pdf below

<u>Manufacturing Costs Calculations :</u>

Job 101  = $19,200 + $28,800 + ($420,000/60,000 x1,000) = $55,000

Job 102  = $14,400 + $11,200 + ($420,000/60,000 x4,000) = $53,600

<u>Closing Overheads :</u>

Actual Overheads = $45,000

Applied Overheads = $420,000/60,000 x 7,000 hours = $49,000

Therefore,

Overheads are over-applied ( by $4,000) and must be deducted from cost of sales

Download pdf
7 0
3 years ago
Other questions:
  • A(n) _____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment.
    15·1 answer
  • When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor wit
    14·1 answer
  • Employers prefer to review a _____ resume when trying to find which candidate has the specific skills necessary for a designated
    5·1 answer
  • A school realizes that they need a new copy machine for their main office. The copy machine costs $5,500. After speaking with th
    14·1 answer
  • Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas
    13·1 answer
  • Garfun, Inc., owns all of the stock of Simon, Inc. For 2014, Garfun reports income (exclusive of any investment income) of $480,
    11·1 answer
  • Which type of technology in criminal intelligence do you think poses the highest risk of infringing our individual rights? Why?
    11·2 answers
  • Panner, inc., owns 30 percent of watkins and applies the equity method. During the current year, panner buys inventory costing $
    8·1 answer
  • Ellen Carson’s sales for 5 months were $26,908, $28,386, $28,730, $27,290, and $29,009. What must be her sales next month if she
    12·1 answer
  • If Company A has a shareholders' deficit, which of the following can it do to improve its debt-to-equity ratio?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!