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3 years ago

What reasons might people have to go into debt? Give two examples. HRGGGGGHH

Business

2 answers:

PtichkaEL [24]3 years ago

7 0

Answer:

There are several reasons we accumulate debt, like paying for unforeseen emergencies or unemployment.

dedylja [7]3 years ago

6 0

Answer:

1. spending a large amount of money on a credit card 2. having children or moving into a new house

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A 10-year $1,000 bond pays a nominal rate of 9% compounded semi-annually. If the market interest rate is 12% compounded annually

skelet666 [1.2K]

Answer:

a) actual dollar = $60

b) Constant dollar of the 15th payment = $38.710

Explanation:

Facts from the question:

The Face value of the bond = $1,000

Nominal Interest rate = 12% and it compounded annually

General inflation rate = 6%

The question: Determine the 15th interest payment on the bond.

Step 1: The coupon for the amount of semi annual payment is as follows:

Coupon= (Interest rate/ Number of compounding times in a year) x face value of the bond

= (0.12/2) x 1000

= $60 -= Actual dollar amount

Step 2: Determine the 15th payment and this will represent the middle of the 8th year or (7 1/2) year.

To calculate this=

Constant dollar amount of the 15th interest payment

= Actual dollar amount (above) / (1 + inflation rate)∧n

where n= the number of years = 7.5 years

= $60 / (1 + 0.06) ∧7.5

= $60/1.55

= $38.710

This means the constant dollar amount on that 15th payment = $38.710

3 0

3 years ago

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhea

Butoxors [25]

Answer:

b. $1,144 unfavourable.

Explanation:

The computation of the variable overhead efficiency variance is shown below:

= (Actual Hours - Standard Hours) × Standard rate per hour

=(1,700 - 8.1 × 200 units) × $14.30

= 80 × $14.30

= $1,144 unfavorable

hence, the variable overhead efficiency variance is $1,144 unfavorable

Therefore the option b is correct

6 0

3 years ago

Differential Analysis for a Lease or Buy Decision Sloan Corporation is considering new equipment. The equipment can be purchased

Arlecino [84]

Answer:

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

Explanation:

Alternative 1 (lease):

less price per year $30,000 x 5 years = $150,000

Alternative 2 (purchase):

initial investment = $125,500 + $1,600 = $127,100

maintenance cost per year = $2,500 x 5 years = $12,500

<h2> Differential Analysis</h2>

alternative 1 alternative 2 differential

lease purchase effect

Revenues $0 $0 $0

Costs:

Purchase price $0 -$125,500 -$125,000

Freight and installation $0 -$1,600 -$1,600

Repair and maintenance $0 -$12,500 -$12,500

(5 years)

Lease -$150,000 $0 $150,000

(5 years)

Income / loss -$150,000 -$139,600 <u>$10,400</u>

Alternative 2 (purchase equipment) should be selected because it reduces costs by $10,400.

4 0

4 years ago

When managing your human resources, _____________ is the process of deciding who should be hired, under legal guidelines, to ser

LenaWriter [7]

I guess there should be an options to choose. Anyway, I think correct answer is: When managing your human resources, selection is the process of deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization. Selection is the process of choosing someone who fits the best by the particular criteria.

8 0

3 years ago

8. When Jill Thompson received a large settlement from an automobile accident,

Dennis_Churaev [7]

Answer:

The amount of fees that Jill will pay this year=$248.20

Explanation:

Expense ratio is a measure of how much fees that fund management firms charge their clients for their investments services. These fees cover administrative and operational costs. In our case, the expense ratio will be expressed as the fees that Jill will pay as a portion of the total amount she invested. The expense ratio can be expressed as shown;

ER=C/A

where;

ER=expense ratio

C=total funds cost

A=total funds assets

In our case;

ER=0.17%=0.17/100=0.0017

C=unknown to be determined

A=$146,000

replacing;

C=ER×A

C=0.0017×146,000=$248.20

The amount of fees that Jill will pay this year=$248.20

3 0

3 years ago