Answer:
a) actual dollar = $60
b) Constant dollar of the 15th payment = $38.710
Explanation:
Facts from the question:
The Face value of the bond = $1,000
Nominal Interest rate = 12% and it compounded annually
General inflation rate = 6%
The question: Determine the 15th interest payment on the bond.
Step 1: The coupon for the amount of semi annual payment is as follows:
Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond
= (0.12/2) x 1000
= $60 -= Actual dollar amount
Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.
To calculate this=
Constant dollar amount of the 15th interest payment
= Actual dollar amount (above) / (1 + inflation rate)∧n
where n= the number of years = 7.5 years
= $60 / (1 + 0.06) ∧7.5
= $60/1.55
= $38.710
This means the constant dollar amount on that 15th payment = $38.710
FIFO will result in higher pretax income and EPS.
FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.
FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.
Learn more about FIFO at
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Answer:
The correct answer is letter "C": the invisible hand.
Explanation:
In Economics, the term "invisible hand" refers to the belief that markets are created according to the demands and needs of individuals who take advantage of opportunities without the need for the intervention of other parties like a government. The term was coined by Scottish Enlightenment thinker Adam Smith (1723-1790) in his book "<em>An Inquiry into the Nature and Causes of the Wealth of Nations</em>" (1776).
Answer: Donating food to needy communities, and clothes
Explanation: The fabric of society
