The Federal Reserve discount rate is the rate of interest charged on loans from the Federal Reserve to commercial banks.
<h3>What is
discount rate?</h3>
The discount rate serves as the interest rate that is been charged to commercial banks as well as other banks.
This is been charged as a result of the loans they took from the Federal Reserve Bank and this is been charged based on agreed interest rate and this can help to know present value of future cash flows.
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Answer:
$ 615,000
Explanation:
Data provided :
Capital budget = $ 650,000
Debt ratio = 40%
Equity ratio = 60%
thus,
The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000
= $ 390,000
Dividend to be paid = $ 225,000
Therefore,
the net income must be earned = $ 390,000 + $ 225,000
or
The net income must be earned = $ 615,000
Answer:
$32769.90
Explanation:
As, Amount = Principcal( 1 + Rate/100)^n
So, 25000 ( 107/100) ^ 4 (as, n = time = 4 years)
So answer= $32,769.90
Answer:
Interest portion = 80.2
Explanation:
Present Value of Payments = P=S/(1+i)^n
P = present Value
S= Future Value
i = Interest
N= time
Amount of third payment = 500
So the Present Value of The 3rd payment is = 500/(1+6%)^3 =419.80
Third installment = 500 this is future value so it contain the interest at 6%
Present Value = 419.8
Time Value of money or Interest = 500-419.8 = 80.2
Answer:
Equivalent Units of Production (EUP) = 3,520 units
Explanation:
Units Completed = Beginning inventory units + Units Started - Ending Inventory
Equivalent Units of Production (EUP) = Beginning Work in Process (WIP) + Started and Completed Units + Ending Work in Process (WIP) x % of conversion
Units Completed = 200 + 3,200 - 400 = 3,000
EUP = 200 + 3,000 + 400 x 80% = 3,520