<span>You should be encouraged to work in
Japan as the growing American preference
for Japanese goods will lead to an increase the value of the yen relative to
the U.S dollar and raise the value of your savings when converted to dollars.</span>
<span>A) -$13. The reason being that, opportunity cost is the benefit that a person could have received, but gave up,in order to take another course of action, which in this case is skiing. And since his salary per 1 hour in the winter months is $13, skiing for one hour instead of working during that hour will cost him $13</span>
Answer:
The amount of interest expense which is to be recorded as on December 31, Year 1 is $8,000
Explanation:
Interest expense is the expense which is incurred or happen through an entity for the borrowed funds. It is the non-operating expense that shows or stated on the income statement.
The amount of interest expense which is to be recorded as on December 31, Year 1 is computed as:
Interest expense = Issued amount of bonds × Interest rate
where
Issued amount of bonds is $100,000
Interest rate is 8%
So, putting the values above:
Interest expense = $100,000 × 8%
Interest expense = $8,000
Answer:
The monthly payment is $2184.52
Explanation:
Given




Required

Firstly, the loan amount has to be calculated
The Question says; of the total amount spent, only 60% was borrowed;
So;


The monthly payment can then be calculated using the following formula

Where P = Loan Amount = 132,000
r = rate of payment = 5.95% = 0.0595
n = duration (in month)
n = 6 years
n = 6 * 12 months
n = 72 months;
Substitute the above parameters in the formula;
becomes










<em>Hence, the monthly payment is $2184.52</em>
Answer:
b. 10.426%
Explanation:
Using the attached formula, convert the nominal rate to effective annual rate
<em>m</em> in the formula is the number of compounding periods per year; 12/2 = 6 in this case.
APR is the nominal rate which is 10%.
Next, plug in the numbers to the formula as shown below;
EAR = ![[1+\frac{0.10}{6}]^{6} -1](https://tex.z-dn.net/?f=%5B1%2B%5Cfrac%7B0.10%7D%7B6%7D%5D%5E%7B6%7D%20-1)
EAR = 1.10426-1
EAR = 0.10426 or 10.426% as a percentage
Hence choice B is correct.