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Vanyuwa [196]
2 years ago
12

Reeves Incorporated is issuing a note payable to four individuals for $5,000 each. Which individual will end up paying the MOST

in interest, assuming all individuals pay in full on the maturity date?
A : Individual 4 has an annual interest rate of 3.8% and a maturity date of six months.
B : Individual 1 has an annual interest rate of 3.5% and a maturity date of 60 days.
C : Individual 2 has an annual interest rate of 4.75% and a maturity date of three months.
D : Individual 3 has an annual interest rate of 4.05% and a maturity date of one year.
Business
1 answer:
cricket20 [7]2 years ago
8 0

Answer: The individual 3 will pay more interest amount, with an interest of $202.5. Therefore option D is the correct option.

Explanation: This is calculated using the simple interest formula.

I = P × R × T

I is the interest

P is the principal

R is the rate per year

T is the period of interest

Option A: for individual 4;

I = $5,000 × 0.038 × 6/12 = $95

Option B: for the individual 1;

I = $5,000 × 0.035 × 60/365 = $28.8

Option C: for the individual 2;

I = $5000 × 0.0475 × 3/12 = $59.4

Option D: for individual 3;

I = $5000 × 0.0405 × 1 = $202.5

Therefore, from the calculations above, the individual that will be most in interest is individual 3, because the individual interest amount is more. That means option D is most correct

While individual 1 will pay less is

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Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard b
soldi70 [24.7K]

Answer:

Allocated cost:

B7= 0.23*600,000= 138,000

K6= 0.50*600,000= 300,000

X9= 0.27*600,000= 162,000

Explanation:

Giving the following information:

Ferrier Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 150,000 pounds of raw materials, the company generates 35,000 pounds of B7, 75,000 pounds of K6, and 40,000 pounds of X9. A standard batch costs $600,000 to produce.

weighted average:

B7= 35,000/150,000= 0.23

K6= 75,000/150,000= 0.5

X9= 40,000/150,000= 0.27

Allocated cost:

B7= 0.23*600,000= 138,000

K6= 0.50*600,000= 300,000

X9= 0.27*600,000= 162,000

8 0
2 years ago
What are trade offs.
Sophie [7]

Ok so trade offers is like here an example: if you want that car really bad but the other person says if you this car you have to give him something that he likes or the same value as the car.

8 0
2 years ago
Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The compa
EastWind [94]

Answer:

Explanation:

Let's first determine the free cash flow of the firm

Particulars                            Years

                          1                         2                   3

EBIT                  540                   680                750

<u>Tax at 36%    (0.36*540)       (0.36*680)        (0.36*750)    </u>

Less:               345.6                  435.2            480

Net Capital -

Spending            150                   170                 190

<u>Change in NWC    70                    75                  80      </u>

Less:                    125.6              190.2                210

The terminal value at the end of T =(3  years) is:

= \dfrac{Free \ cash \ flow}{unlevered \ cost - expected \ growth  \ rate}

= \dfrac{250}{0.1643-0.04}

= \dfrac{250}{0.1243}

= 2011.26

Finally, the value of the firm can be computed as follows:

Years                  Free Cash Flow        PVIF           PV

1                          125.6                        0.6589        107.88

2                         190.2                        0.7377         140.31

3                          210                           0.6336       133.06

<u>Terminal Value  2011.26                    0.6336        1294.33     </u>

<u>Value of the firm   ⇒                                               $1655.58</u>

5 0
2 years ago
On January 1, 2001, El Salvador "dollarized" its economy. The U.S. dollar circulated throughout the country along with the Salva
solniwko [45]

Answer:

1. The government could not finance it's deficit budget.

2. The Dollar was stable and Through dollar adoption, interest rate would be lowered and investments would increase.

Explanation:

The colon was changed to dollars because El Salvador wanted a boost in it's economy through the US Dollar.

Printing money to finance deficit would no longer be done by the government and inflation would be brought under control. Because of the adoption El Salvador has no control over it's monetary policy.

the government would still be able to run deficits by printing money

with dollars, shocks caused by demand in the economy will be offset more effectively by using monetary policy.

By printing U.S. dollars, the government would still be able to finance deficits.

6 0
3 years ago
Read 2 more answers
Exercise 5-8 Equivalent Units; Cost per Equivalent Unit; Assigning Costs to Units-Weighted-Average Method [LO5-2, LO5-3, LO5-4]
S_A_V [24]

Answer:

1. Calculate the first production department's equivalent units of production for materials and conversion for May.

  • materials = 275,000 + 50,000 = 325,000
  • conversion = 275,000 + 12,500 = 287,500

2. Compute the first production department's cost per equivalent unit for materials and conversion for May.

  • materials = $169,000 / 325,000 = $0.52
  • conversion = $253,000 / 287,500 = $0.88

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

  • materials = 50,000 x $0.52 = $26,000
  • conversion = 12,500 x $0.88 = $11,000
  • total = $37,000

4. Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May.

  • materials = 275,000 x $0.52 = $143,000
  • conversion = 275,000 x $0.88 = $242,000
  • total = $385,000

Explanation:

Beginning WIP 70,000 units

materials $56,100

conversion $16,400

Ending WIP 50,000 units

100% completed for materials (50,000 EU)

25% completed for conversion (12,500 EU)

units started 255,000

total units transferred out 275,000

materials cost added during the period = $112,900

conversion cost added during the period = $236,600

7 0
3 years ago
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