Expected profit is the probability of receiving a profit multiplied by the profit
So
Strong 50,000 * .30 = 15,000
Moderate = 10,000 * .60 = 6,000
Recession = -50,000 * .10= -5,000
Add those up, and you should expect a profit of around 16,000
When one commercial bank borrows from another commercial bank, it pays the discount rate.
The one place where a bank can get reserves is by borrowing from a commercial bank. As whenever a person or a business firm or an organization borrows, they should pay interest and a bank that borrows from a commercial firm must pay interest to them too. The interest that the commercial bank charges to banks that borrow from them is called the discount rate.
The term discount rate is used when looking at a certain amount of money to be received in the future years and calculating the present value now. The word “discount” means the amount to be deducted. A discount rate is a typical rate that is deducted from a future quantity of money to provide its present value to money seekers.
The cash flows of investments or business ventures when at the time of discount, it is important to note whether the discount rates used can be varied depending on particular different elements. So, discount rates are paid to compensate the borrower bank to the lender bank during transactions.
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Answer:
A) high; quick
Explanation:
The information in the sentence above provides that the businesses and that the workers are sensitive to the change in any kind of money supply or inflation.
This means both very quickly respond to anything like that and will change accordingly.
Therefore, the inflation rate when is high, then the companies and workers are really quick to create any policy.
Answer:
Tzs 540
Explanation:
The selling of Tzs 475 results in a 5% loss.
It means Tzs 475 represents 95% of the cost price.
The cost price is equal to 100%.
If 95% = Tzs 475, 100 % = ?
=Tzs475/95 x 100
=Tzs 5 x 100
The cost price =Tzs500
To make 8% profits, the selling price will have to be
=Tzs 500 +( 8/100 x 500)
=Tzs 500 +( 0.08 x 500)
=Tzs =500 + 40
=Tzs 540
Answer:
Warranty Expense (Debit) $3,960
Warranty Liability (Credit) $3,960
Explanation:
The principle we apply while making entries for standard warranty is this:
The <u>estimated amount of warranty expense</u>, <em>which a company founds as a percentage of its sales from historical claims and data</em>, is taken as benchmark to accrue the warranty expense in the period when the sale is made <em>(matching principle) .</em>
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In our question, 4.5% is the estimated warranty expense.
The company then sets off the estimated warranty expense (Debit)
(<em>4.5% * $88,000 = $3,960</em>)
with the warranty liability (Credit) to entertain any claims in future.