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faust18 [17]
3 years ago
15

The Marx Company issued $98,000 of 8% bonds on April 1 of the current year at face value. The bonds pay interest semiannually on

January 1 and July 1. The bonds are dated January 1, and mature in five years, on January 1. Determine the total interest expense related to these bonds for the current year ending on December 31.
Business
1 answer:
Fed [463]3 years ago
8 0

Answer:

$4,800

Explanation:

Interest Expense of the bond is calculated by multiplying Face value and Coupon rate. Any discount or premium is amortized over the life of the bond and added or deducted from the interest payment in order to record the interest expense.

As per given data

Face value of Bond = $80,000

Coupon Rate = 8%

Interest Expense = Face value x Coupon rate

As on July 1 interest of only 3 months has been accrued, so we will record the interest expense of 3 months only.  

On July 1

Interest Expense = $80,000 x 8% x 3/12 = $1,600

6 month period Expense will be recorded.

On December 31

Interest Expense = $80,000 x 8% x 6/12 = $3,200

Total Expense = $1,600 + $3,200 = $4,800

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You have graduated from college but unfortunately have $39,000 in outstanding loans. The loans require payments of $3,435 per ye
vladimir1956 [14]

Answer:

15.44 years

Explanation:

Using both excel rate function and financial calculator, the time taken to repay the debt can be computed thus:

Excel rate function:

=nper(rate,pmt,-pv,fv)

rate= interest rate=4%

pmt=yearly payment=c

pv=loan oustanding=-39000

fv=the balance after all payments should be zero=0

=nper(4%,3435,-39000,0)= 15.44 years

Financial calculate

PMT= 3435

RATE=4

PV=-39000

FV=0

CPT N=15.44 years

This means a payment of $3,435 per year for 15 years  and $ 1,511.40  ($3,435*0.44) in the sixteenth year

3 0
3 years ago
For franklin, inc., sales is $1,500,000, fixed expenses are $450,000, and the contribution margin ratio is 36%. what are the tot
KengaRu [80]
The answer is "<span>$960,000".

This is how we calculate this;
</span><span>sales = $1,500,000
</span><span>fixed expenses = $450,000
</span><span>contribution margin ratio = 36% = 36/100 = 0.36
</span>total variable expenses = <span>($1,500,000) (1 – 0.36)
= (1,500,000)(0.64)
= $960,000</span>
6 0
3 years ago
When the government runs a budget deficit, we would expect to see that:.
zaharov [31]

Answer:

We will expect to see the government spending more of the money than it is bring to the table/bringing in the money, and in this situation the national savings will be decreasing, and when they do lower, the investments/primary stores will also be decreasing. And if this happen the lowering investments leads to lower long-term economic growth.

Explanation

8 0
2 years ago
Read 2 more answers
The maintenance of money’s value is said to depend on the monetary authorities. What might the monetary authorities do to devalu
erica [24]

Answer: One thing that could be done to devalue a currency is to issue more currency into their markets.

Explanation:

Any asset or goods can be based on how scarce the product or assets it. The authorities in the foreign markets could make more currency and this will devalue the currency because the market will be saturated. The money/currency will still be at the same value as before but the purchasing power will be reduced since there is an added supply of money in the economy.

8 0
3 years ago
Which action is an example of a consumer making a purchase through a direct marketing arrangement?
Vladimir [108]

By providing customers with a direct line to vendors through the mail, phone, or computer, direct marketing enables them to make purchases from the comfort of their own homes or places of employment. Telemarketing, catalog sales, online shopping, and direct mail are a few examples of direct marketing.

<h3><u>What Is Direct Marketing?</u></h3>

Direct marketing is any form of advertising that reaches out to customers directly, as opposed to going through an intermediary like the media. Campaigns using text messaging, social media, email, and the postal service are some of the delivery techniques used. Direct marketing is called that because it frequently eliminates the middlemen, such as the media.

<u>The Workings of Direct Marketing</u>

In contrast to traditional public relations efforts that broadcast information through a third party, like media outlets or mass media, direct marketing initiatives operate autonomously to engage with target audiences.

In direct marketing, businesses employ social media, email, postal, phone, and SMS campaigns to disseminate their content and make sales pitches. Direct marketing frequently attempts to personalize the message by inserting the recipient's name or city in a prominent area in order to boost interaction, despite the occasionally enormous volume of communications distributed.

Learn more about marketing with the help of the given link:

brainly.com/question/23867900

#SPJ4

4 0
1 year ago
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