Answer:
$246,287.86
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate = 7/4 = 1.75%
N = number of years = 4 x 3 = 12
$200,000( 1.0175)^12 = $246,287.86
Answer:
Detailed step-wise solution given in the table attached.
Answer:
A credit union
Explanation:
As it says in Chapter 5,
"The financial institutions that most people use serve as intermediaries between suppliers (savers) and users (borrowers) of funds. These deposit-type institutions include commercial banks, savings and loan associations, mutual savings banks, and credit unions" (p. 7, or 142)
The rest are other financial institutions
"Financial services are also available from institutions such as life insurance companies, investment companies, finance companies, mortgage companies, pawnshops, and check-cashing outlets" (p. 9, or 144)
Answer:
$5,000
Explanation:
The return on investment is 20%
= 20/100
=0.2
The average operating assets is $100,000
The minimum required rate of return is 15%
= 15/100
= 0.15
The first step is to calculate the net operating assets
= ROI× average operating assets
= 0.2×100,000
= $20,000
Therefore, the residual income can be calculated as follows
= Net operating income-(minimum required rate of return×average operating assets)
= $20,000-($100,000-0.15)
= $20,000-15,000
= $5,000
Hence the residual income for the year was closest to $5,000
Answer:
The total amount of paid-in capital in excess of par is: $5,000.
Explanation:
When Common Stocks are classified as par value Stocks, any price paid in excess of the par value of the Stock is accounted for in the Share Premium account.
<u>Here is the Summary of the Transaction provided.</u>
Common Stocks : 260 shares × $100 = $26,000
Paid-in capital in excess of par : $31,000 - $26,000 = $5,000
