Answer:
The nominal rate of return on these bonds is 5%
Explanation:
The Formula for the Real Rate of Return is
Real rate of return =Nominal interest rate - Inflation rate
So,
Nominal interest rate=Real rate of return+Inflation rate
Nominal interest rate=3%+2%
Nominal interest rate=5%
Answer:
The necessary entries would be:
Dr Accounts receivable $11,000
Cr Sales revenue $10,000
Cr Deferred revenue $,1000
Explanation:
Revenue should be recognized in the books of account where the selling party has performed its obligation of delivering goods or rendering services as contained in the sales contract.
This contract contains provision of goods -inventory that have been delivered and rendering of services-installation that is in progress, as a result the revenue relating to the former is due to be recognized now while the later would be recognized when is installation is concluded.
Based on the information given the desired profit per unit is $0.14 per unit.
First step is to find the unit using this formula
Units=Target sales revenue / Target selling price per unit
Units=$850500 / $4.05
Units =210,000
Second step is to calculate the desired profit per unit using this formula
Desired profit per unit=Target selling price per unit - (Target costs / Units)
Desired profit per unit=$4.05-($821250 / 210,000)
Desired profit per unit=$4.05- $3.91
Desired profit per unit=$0.14
Inconclusion the desired profit per unit is $0.14 per unit.
Learn more here:
brainly.com/question/24315795
Answer:
108,280.22
Explanation:
Certainty equivalent is solved by taking the inverse utility function from the expected utility of a random wealth variable
U(x) = x^1/4
U^-1(x) = x^4
U^-1(x) === x^4
CE(x) = x^4
Salary Bonus Total income U(x)= x^(1/4) P(x) U(x)*P(x)
80000 0 80000 16.82 1/7 2.4
80000 10000 90000 17.32 1/7 2.47
80000 20000 100000 17.78 1/7 2.54
80000 30000 110000 18.21 1/7 2.6
80000 40000 120000 18.61 1/7 2.66
80000 50000 130000 18.99 1/7 2.71
80000 60000 140000 19.34 1/7 <u>2.76</u>
Sum <u>18.14</u>
CE(x) = 18.14^4
CE(x) = 108280.22
So therefore, the certainty equivalent of this job offer is 108,280.22
Answer:
- Melba's adjusted basis for the land at the Acquisition date is $625000
- Melba's adjusted basis for the land one year later is $645000
Explanation:
The adjusted basis for a property/land is the net cost of the property after adjusting for factors that might attract tax as related to the land
The adjusted basis for the land at the acquisition date is the net cost of the land at the acquisition date which will be ( $225000 + $400000 ) because that was the net cost of the Land at the date of acquisition before an agreement was later reached by Melba requiring him to pay $400000 plus an interest of 5%
Hence the adjusted basis for the land one year later will be
= ( $225000 + $400000 ) + 5% of $400000
= ( $625000 ) + $20000
= $645000
