All categories

2 years ago

Distinguish between the costs of having a basic checking account and an interest-bearing checking account

Business

1 answer:

boyakko [2]2 years ago

3 0

Answer:

Checking account is what you can use, and ibca is account that has interest rate.

Explanation:

You might be interested in

Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the

Triss [41]

Answer:

ATTACHED file with the bonds schedule

Explanation:

First, we solve for the proceed from the issuance:

PV of the coupon:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 25,000.000 (500,000 x 10%/2)

time 7 (3 and a half year x 2 payment per year)

rate 0.06 (12% annual / 2)

$25000 \times \frac{1-(1+0.06)^{-7} }{0.06} = PV\\$

PV $139,559.5360

PV of maturity:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 500,000.00

time 7.00

rate 0.06

$\frac{500000}{(1 + 0.06)^{7} } = PV$

PV 332,528.56

PV c $139,559.5360

PV m $332,528.5568

Total $472,088.0928

Then we construct the bonds schedule as follows:

procceds 472,088

face value 500,000

discount on bonds payable -27,912

bond rate 0.05

market rate 0.06

ionterest expense: carrying value times market rate:

472,088 x 0.06 = 28,325.29

cash outlay 25,000

amortization 3,325.29

carrying value after first payment:

472,088 + 3,325.29 = 475,413.29

and the process repeat for all periods.

3 0

2 years ago

What is aacceleration?<br>Who is the most active MOD here?

swat32

Answer:

Acceleration is the rate of change of velocity. Usually, acceleration means the speed is changing, but not always. When an object moves in a circular path at a constant speed, it is still accelerating, because the direction of its velocity is changing.

Explanation:

6 0

2 years ago

Read 2 more answers

Who must make the determination to cancel an invitation for bids after bid opening?a.Contracting officerb.Chief of the contracti

Lesechka [4]

Answer:

c.Head of the contracting activity

Explanation:

6 0

2 years ago

Are the following statements true or false? The difference between savings and investments is that savings is money set aside fo

grigory [225]

Answer:

That statement is true.

Explanation:

Basically, You put your money in saving if you intended to use that money for future consumption. You put your money in investment if you intended to make financial gain out of it.

For example,

Let's say that you want to buy a laptop that cost $700. You only able to spend $350 per month since you have to consider other more important payment such as rent or food. So you set aside $350 for two month and purchase the laptop at the end of the second month. This is an example of saving.

In another case let's say that you put that $350 in Bonds rather than purchasing laptop. You Let that bond mature and take a 3% interest as profit. Two month later, the value of your money is increased. This is an example of an investment.

8 0

2 years ago

Read 2 more answers

Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco

wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

= $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0

3 years ago