RISK vs. Return Math Quiz

thomas owes $438 on his credit card and was unable to pay more than the minimum payment of $20. unfortunately he mailed the paym

Kazeer [188]

Answer:

$575.82.

Explanation:

Since Thomas owes $ 438 on his credit card, but only paid the minimum of $ 20, his debt is now $ 418 (438 - 20). A late fee of $ 39 will be added to this value, which will raise said sum to $ 457 (418 + 39). In turn, the interest rate for unpaid card balances is 26% per month. Therefore, next month his balance will be $ 575.82 (457 x 1.26).

7 0

2 years ago

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

valentinak56 [21]

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $60,000
cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77 x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

8 0

3 years ago

An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 9 when

solong [7]

Answer:

Ans. The annuity that will be equivalent to the publisher´s advance would be $26.40 per year, for 9 years at 7% interest rate.

Explanation:

Hi, first, let´s bring that $500 to be paid in 9 years to present value, we need to use the following formula.

$PresentValue=\frac{FutureValue}{(1+r)^{n} }$

Where: r is our discount rate (7%) and n the periods from now when she will receive that $500 amount. This should look like this.

$PresentValue=\frac{500}{(1+0.07)^{9} } =271.97$

Ok, so the equivalent amount of money today of those $500 in nine years is $271.97, but the author wants $100 today so the remaining amount has to be used to find the equal annual payments to be made in order to be equivalent to re remaining balance ($171.97). We now need to use the following equation.

$Present Value=\frac{A((1+r)^{n}-1 )}{r(1+r)^{n} }$

And we solve for "A" like this

$171.97=\frac{A((1+0.07)^{9}-1 )}{0.07(1+0.07)^{9} }$

$171.97=\frac{A(0.838459212 )}{0.128692145}$

$171.97=A(6.515232249)$

$A=\frac{171.97}{6.515232249} = 26.40$

Therefore, the equivalent amount of money of $500 in 9 years is $100 today and $26.40 every year, at the end of the year, for nine years.

Best of luck.

4 0

2 years ago

Journalize the following transactions that occurred in for , assuming the perpetual inventory system is being used. No explanat

MariettaO [177]

Answer:

Journal Entries:

Sep. 3:

Debit Inventory $7,500

Credit Accounts Payable (Silton Wholesalers) $7,500

To record the purchase of merchandise on account.

Sep. 4:

Debit Freight on Inventory $50

Credit Cash Account $50

To record freight on purchase.

Sep. 4:

Debit Inventory $2,000

Credit Cash Account $2,000

To record the purchase of merchandise for cash.

Sep. 6:

Debit Accounts Payable (Silton Wholesalers) $1,100

Credit Inventory $1,100

To record the return of inventory.

Sep. 8:

Debit Accounts Receivable (Houston Company) $6,100

Credit Sales Revenue $6,100

To record the sale of merchandise on account.

Sep. 13:

Debit Accounts Payable (Tristan Wholesalers) $100

Credit Inventory $100

To record the allowance received.

Sep. 15:

Debit Accounts Receivable (Jex Company) $2,900

Credit Sales Revenue $2,900

To record the sale of merchandise on account.

Sep. 22:

Debit Accounts Payable (Tarin Wholesalers) $

Credit Cash $

For alleged goods purchased on September 9 (not in the records).

Sep. 23:

Debit Inventory $230

Debit Sales Revenue $270

Credit Accounts Receivable (Jex Company) $500

To record inventory returned and the corresponding profit on sales.

Sep. 29:

Debit Cash Account $

Credit Accounts Receivable (Smede) $

To record receipt from Smede (not in the records).

Sep. 30:

Debit Cash Account $2,400

Accounts Receivable (Jex Company) $2,400

To record receipt from Jex Company in full settlement.

Explanation:

Company B uses the journal entries to initially record business transactions as they occur on a daily basis. They show the accounts to be debited and the ones to be credited.

5 0

3 years ago

What number should be included in the following data so that the median is 5.2? 4,7,11,5,3

ruslelena [56]

Answer:

5.4

Explanation:

To find the median, we need to arrange the numbers in numerical order.

Hence, here we have 3, 4, 5, 7, 11.

Given that the question says we should look for numbers that would be included in the following data so that the median is 5.2. Hence, we need to add the number to the set.

Therefore the total number of the set will be 6 making it an even number. Hence we have to add the two numbers in the middle and divide them by 2.

Since the median is 5.2, hence we multiply it by 2 = 10.4

Therefore, we less 5 from 10.4, we have 5.4

To check we now have a set of numbers 3, 4, 5, 5.4, 7, 11

Where 5 + 5.4 = 10.4, then divided by 2 = 5.2 as median.

4 0

3 years ago