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irina1246 [14]
3 years ago
9

Abe and Bea each have some money to invest in a CD (Certificate of Deposit). Abe has $5,000 and Bea has $20,000. Both are intere

sted in making a 6-month investment at Synchrony Bank. The CD rates for Synchrony Bank (as of July 8, 2015) are as listed below. With 0.41% interest, Abe would get $5,010 in six months. With 0.50% interest, Bea would get $20,050 at the end of six months. If they pool their funds, they will be able to purchase a $25,000 CD, which pays a higher interest rate. The 0.60% interest will return $25,075 at the end of six months. Obviously, Abe gets back his $5,000 principle, and Bea gets back her $20,000 principle. How should the $75 interest be divided between the two of them
Business
1 answer:
hjlf3 years ago
3 0

Answer:

Abe = $17.5

Bae = $57.5

Explanation:

Abe's principle = $5,000

Bea's principle = $ 20,000

Abe individual investment yield at 0.41% = (5010-5000) = $10

Bae's individual investment yield at ) 0.50%= (20000-20050) $50

Combined investment yield at 6 % = (25,075 - (20,000+5000) = $75

Extra interest yield = (75-(50+10) = $15

The extra interest yield of $15 should be shared equally among Abe and Bae as a result of joint effort

= 15/2 - $7.5

Therefore , the $75 interest is shared as below

Abe = $10 (interest on individual principle)+$7.5 = $17.5

Bae = $50 (interest on individual principle)+$7.5 = $57.5

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Answer:

a. Bonds payable   Liability account

b. Equipment   Asset account

c. Accounts payable    Liability account

d. Salaries payable   Liability account

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f. Retained earnings    Equity account

g. Cash   Asset account

h. Accounts receivable   Asset account

i. Sales revenue   Equity account

j. Inventory  Asset account

Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

All the account with credit nature is either classified as Liability or Equity accounts. Equity accounts are common stock, retained earning and sales revenue. Liabilities accounts are bond payable, account payable and salaries payable.

8 0
3 years ago
A store has 5 years remaining on its lease in a mall. Rent is $2,000 per month, 60 payments remain, and the next payment is due
liubo4ka [24]

Solution:

Sum      Present value of 60 payments

             Rent                                              2000

            Periods                                           60

            Rate                                                 12%

        Present value of 60 payments    $94,405 (Excel = PV( 1% , 60 , 2000))

       Future value of these payments at t=9

       Future value                                   $1,03,249.99(Excel=FV(1%,9,94,405)

       Periods                                              51

        Rate                                                 12%

8 0
3 years ago
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Answer:

Cost savings when transfer are made = $0

Explanation:

In the question it was given that Quail is operating at capacity, then the  Minimum and Maximum transfer price would be market price = $15.80

Cost savings when transfer are made = No of unit Marlin purchase*(Maximum transfer price - Minimum transfer price)

Cost savings when transfer are made = 195,000 unit * ($15.80 - $15.80)

Cost savings when transfer are made = $3,081,000 - $3,081,000  

Cost savings when transfer are made = $0

5 0
3 years ago
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zhannawk [14.2K]

Answer: Product Life cycle

Explanation: Product Life cycle is a concept used to describe the various stages which a product will have to undergo from the time of introduction into the market till the time it will eventually be out of the market. Different products have different life cycle,the life cycle is determined by different factors. The shape of a product's life cycle is that of a BELL SHAPE

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8 0
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alexdok [17]
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