Answer:
<em>Computation of the interest expense using the equation as shown below:
</em>
Interest expense for year 1 = Notes payable * Interest rate
= $100,000 * 10%
= $7,000
Notes payable reduction in Year 1 = $14,238 - $7,000
= $7,238
General journal entry
Item Debit Credit
<em>Notes payable $7,745</em>
Interest expense $6,493
Cash $14,238
Workings
Interest expense = ($100,000 - $7,238) * 7%
= $92,762 * 7%
=$6,493
Answer:
5.57%
Explanation:
The real rate is 2.1 percent
The inflation rate is 3.4 percent
To find the rate which is to be expected on a treasury bill we have to apply the fishers equation
1+R= (1+r)(1+h)
Therefore, the rate on the treasury bill can be calculated as follows
1+R= (1+r)(1+h)
r= 2.1%
= 2.1/100
= 0.021
h= 3.4%
= 3.4/100
= 0.034
R= (1+r)(1+h)-1
= (1+0.021)(1+0.034)-1
= (1.021×1.034)-1
= 1.0557-1
= 0.0557×100
= 5.57%
Hence the rate expected on the treasury bill is 5.57%
Answer:
The debit yield ratio is 9%
Explanation:
Rent = 12 units × 12 months × $1,050 = $151,200
Net Operating Income = Rent- Operating expenses - Expected vacancy and collection losses + Garage rent
= $151,200 - $35,700 - $30,240 + $3,840
= $89,100
Debt amount = Price × (1 - Down payment)
= $1,100,000 × (1 - 0.1)
= $990,000
Debt yield ratio =
=
= 9%
Answer:
the net present value is a measure of profits expressed in today's dollars pls mark me as the brainliset hope it helps you