Answer:
The effective annual rate of interest is 23.45%
Explanation:
Effective annual rate of interest=(1+annual interest)^365/t-1
Annual interest =discount rate/100%-discount rate
discount rate here is 2%
annual interest=2/100-2
=2.04%
T is the difference between the discount period of 10 days and credit period of 45 days
45-10=35 days
Effective annual rate of interest=(1+2.04%)^(365/35)-1
=(1.0204^10.42857143)
-1
= 1.2345 -1
=0.2345
=23.45%
Answer:
=$ 25,500
Explanation:
cash equivalents will be petty cash + cash at bank
= 500+20,000+5000
=$ 25,500
Cash or cash equivalent refers to assets held in the form of cash or can easily convert into cash in less than 90 days. Examples of cash include petty cash, cash in hand, cash in the bank, and debt securities whose maturity is within 90 days. Cash or cash equivalent appears at the top on the list of assets in a balance sheet.
Marketable debt securities are short-term to bond issued by a corporation and held by another company. They are listed as a current asset if they are to be sold within one year to long term investment if they are expected to last longer. Marketable equity securities are capital instruments. They are listed as current assets if they are to be liquidated in one year or long term investment if longer.
Answer: A
Explanation: Working in teams increases collaboration and allows brainstorming. As a result, more ideas are developed and productivity improves. Two or more people are always better than one for solving problems, finishing off difficult tasks and increasing creativity.Performance is merely the summation of each group member's individual contribution.The collective efforts of the members results in a level of performance greater than the sum of the individual parts .
Answer: Not a wise investment as Cost exceeds Receipts.
Explanation:
As the amount is a constant payment, it is an annuity and as it is in future we are looking for the future value of an annuity:
Future Value of Annuity = Annuity * [ ( 1 + rate ) ^ time period - 1] / rate
= 7,000 * [ ( 1 + 5%)⁸ - 1] / 5%
= $66,843.76
Speculator pays $66,843.76 for loan and sells for $50,000.
The speculator would be paying more for the loan than they will sell the land for so this is not a wise investment.
