Answer:
t = 4.607742347 years rounded off to 4.61 years
Explanation:
To calculate the number of years it will take an investment of $3500 to grow to $5900 at an annual interest rate of 12%, we will use the formula for the future value of cash flows. The formula can be written as follows,
Future value = Present value * (1+i)^t
Where,
- i is the interest rate
- t is the time in years
Plugging in the values for future value, present value and i, we can calculate the t to be,
5900 = 3500 * (1+0.12)^t
5900 / 3500 = (1.12)^t
1.685714286 = 1.12^t
Taking log on both sides.
Ln(1.685714286) / Ln(1.12) = t
t = 4.607742347 years rounded off to 4.61 years
Answer:
D) The Agency Problem
Explanation:
The agency problem refers to a conflict of interests between the principal and his/her agent. Agents have a fiduciary duty to act on the best interest of their principal, but sometimes agents place their own personal interest before the interests of their principal.
in this case, the brokers should act on behalf of their clients to make them earn the largest possible profits, but instead they focus on convincing them about transactions that increased the broker's profit and not the clients'.
Given:
<span>$500,000 beg. balance in retained earnings.
</span>$200,000 <span>net income for the year
</span>$1,000,000 <span>sales revenue
</span>$100,000 <span>dividends declared and paid by year-end
Retained earning is the amount left from net income after dividends have been paid. In the given data, sales revenue is not included in the Retained earnings report. It is reflected in the Income statement which generates the Net income.
Retained Earnings, beg. balance 500,000
Add: Net Income for the year <u> 200,000</u>
Total 700,000
Less: Dividends declared and paid this year <u> (100,000)</u>
Retained Earnings, end balance 600,000
</span>
Answer:
Balance sheet.
Explanation:
Options B, C, D are wrong because income statement, retained earnings statement, and statement of cash flows is prepared for a specific period. For example, an accounting year or a fiscal year. As a company is operating throughout the year, it can generate income, expenses, and dividends.
On the other hand, assets and liabilities are valued on a specific date. Therefore, option A (balance sheet) is correct.
