Answer:
3. fall if the price index rises.
Explanation:
- According to the nominal income, the inflation is a one of the major factors that decrease the amount of the goods and the services that would be afforded with a given amount of the nominal incomes thus if the person wants to keep this real income steady for the next year's nominal income may fall as the increase of the inflation in the economy. And can erode the nominal income gains.
Answer:
Explanation:
The journal entries are shown below:
On July 15:
Purchase A/c Dr $89,180
To Accounts payable $89,180
(Being purchase of goods are made on credit with discount)
The computation of the purchase of tires after applying the discount is shown below:
= Number of tires × price per tire - discount rate
= 2,600 tires × $35 - 2%
= $91,000 - $1,820
= $89,180
On July 23:
Account payable A/c Dr $89,180
To Cash A/c $89,180
(Being payment is made)
On August 15:
Account payable A/c Dr $89,180
Interest expense A/c Dr $1,820
To Cash A/c $91,000
(Being payment is made on late interval)
Answer: a. 0.042 b. 0.086 c. 0.00692
Explanation:
NOTE: Convert months to years. So 24 months = 2 years.
a. Six months
Months to year conversion gives: 6months/24months as 1/4 years
= (1 + 18%)^ 1/4 — 1 x 100%
= 1.042 — 1
= 0.042
Equivalent Discount Rate = 0.042
b. One year
12months/24months as 1/2 years
= (1 + 18%)^1/2 — 1 x 100%
= 0.086
Equivalent Discount Rate = 0.086
c. 1 month
1month/24months as 1/24 years
= (1 + 18%)^1/24 — 1 x 100%
= 0.00692
Answer:
$3,168
Explanation:
We will receive $4000 in future (after 4 years time) which means all we want to know is the amount that we Derek must deposit today.
This present value of the $4000 payment received after 4 years from today can be calculated using the following formula:
Present value = Future Value / (1 + r)^n
Here
Future Value is $4000
r is 6%
n is 4 years
So by putting values, we have:
Present value = $4000 / (1 + 6%)^4 Years
Present value = $3,168
Answer:
The answer is letter C.
Explanation:
The statement that would need to be documented in a report is The Fujita-Pearson tornado scale rates tornadoes with wind speeds of 261 to 318 miles per hour as F5 storms.
