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sammy [17]
3 years ago
5

In the interest formulas, a simple interest can be used in any of the single payment formulas as long as the 'n values correspon

d to the interest period?
A) True
B) False
Business
1 answer:
Yuri [45]3 years ago
3 0

Answer:

False

Explanation:

Apart from simple interest, compound interest can be used for single payments

the formula for compound interest is : future value - present value

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

The formula for simple interest : amount x time x interest rate

Assume that 1000 is to be received in 2 years at the interest rate of 10%

Simple interest = 1000 x 2 x 0.1 = 200

Compound interest

1000 x (1.1)^2 = 1210

1210 = 1000 = 210

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On October 1, Courtland Company sold merchandise in the amount of $5,800 to Carter Company, with credit terms of 2/10, n/30. The
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Answer:

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

Explanation:

On October 1, when Courtland Company sold merchandise, the following entries were made:

1. Debit Cost of goods sold $4,000

Credit Merchandise $4,000

2. Debit Receivable Accounts $5,800

Credit Sales $5,800

Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

Carter pays and takes the appropriate discount:

2% x $5,800 = $116

Cash Courtland Company receives: $5,800-$116 = $5,684

The journal entry that Courtland makes on October 8 is:

Debit Cash $5,684

Debit Sales Discount $116

Credit Receivable Accounts $5,800

3 0
3 years ago
Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/19, net 60. Mr. Warner never takes t
vekshin1

Answer:

35.92%

Explanation:

The computation of cost of not taking the cash discount is shown below:-

Discount percentage ÷ (100 - Discount percentage) × (360 ÷ (Full Allowed Payment Days - Discount Days))

= 3% ÷ 97% × 360 ÷ (50 - 19)

=  3% ÷ 97% × 360 ÷ 31

=  0.03093 × 11.61290

= 0.359187

= 35.92%

Therefore for computing Mr. Warner's cost of not taking the cash discount we applied the above formula.

3 0
3 years ago
Which of the following statements is true.
Ad libitum [116K]
A. Women face wage discrimination and experience lower pay within similar professions compared to men.
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Congress passed a law imposing penalties for displaying "indecent" material online where children could see it. If the U.S. Supr
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Answer:

1) True

Explanation:

The checks and balances system allows every one of the government branches a say on new laws. First of all, Congress makes and passes laws. Second, the President can veto any law, and Congress needs two-thirds votes on both houses to overrun the presidential veto. Third, the Supreme Court decides if the law is constitutional or not, if it decides that the law is unconstitutional, it is eliminated completely or partially depending on the ruling.

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Brainstorming is only effective when done
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Answer:

In groups

Explanation:

Brainstorming is a problem-solving technique where members of a group are encouraged to contribute ideas that could solve the problem at hand. There are right or wrong proposals. Every suggestion is discussed extensively.

Brainstorming allows for deliberations on diverse possible solutions to a problem. The idea that is acceptable by all members is considered the group's decision.

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