Answer:
The correct answer is option C.
Explanation:
When the interest rate falls below the normal level, people expect the interest rates to rise in future and bond prices to fall. This causes investors to sell the bonds at present so that they can buy bonds when they are selling at lower prices in future as of result of an increase in interest rates. Money demand will, as a result, will decrease.
Answer:
Paco will have 335 dollars available for the car-loan
Explanation:
fromthe $490 cash flow
we should subtract the cash cost as once we obtain it through a loan we will have to handle with them as well:
490
- 60 gas
- 70 insurance
- 15 maintenance
<u> - 10 repairs </u>
335 net monthly savings after the purchase of the car.
Answer:
The appropriate solution will be the "establishment" stage.
Explanation:
- The establishment stage throughout professional advancement or career progress is the time where someone who starts to pursue jobs and receives one's first assignment.
- Thus, during that point, the candidate goes through all the induction process, the acknowledgment of a position as well as the accommodation of the particular organization.
So that Sarah's profession has been at the level of the establishment.
Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
Answer:
The present Value of my winnings = $4,578,716.35
Explanation:
An annuity is a series od annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity.
To work out the the present value of a growing annuity,
we the formula:
PV = A/(r-g) × (1- (1+g/1+r)^n)
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.
A/(r-g)
= 460,000/(12%-3%)
= $5,111,111.11
(1- (1+g/1+r)^n
1 - (1+3%)/(1+12%)^(27)
=0.8958
PV = A/(r-g) × (1- (1+g/1+r)^n)
$5,111,111.11 × $0.8958
= $4,578,716.35
The present Value of my winnings = $4,578,716.35
