Answer:
Following are the solution to the given point:
Explanation:
Calculating the value of the effective interest rate:
Formula:
Calculating the value of Effective annual rate of interest:
Calculating the Amount in each semiannual payment:
Calculating the value of the total interest paid:
Explanation:
The purpose of preparing a Bank Reconciliation Statement is to detect any discrepancies between the accounting records of the entity and the bank besides those due to normal timing differences. Such discrepancies might exist due to an error on the part of the company or the bank.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
A).Present Value of the Cash Flow for the Lump Sum Payout
= Prize of Lottery Amount × (1 -Tax Rate)
= $506,300 × (1 - 0.46)
= $506,300 × 0.54
= $273,402
B).Present Value of the Cash Flows for Annuity Payout is
= Annuity Payment × (1 - Tax Rate) × PVIFA 8%,20 Years × (1 + Rate of Return)
= $37,000 × (1 - 0.26) × 9.8181 × (1 + .08)
= $37,000 × 0.74 × 9.8181 × 1.08
= $290,325
c). According to the analysis, $290,325 is more than the $273,402, So he should be chooses option (b) $290,325 as a payout option.
Answer: Option A
Explanation: Scarcity refers to the situation when there is limited availability of a commodity. This term is usually used for the natural resources like coal, drinking water etc.
In economics it refers to the situation when there is not limited quantity of resources available for fulfilling the market demand. Scarcity deals with the problem of limited resources in nature and unlimited wants of the population.
Hence, from the above we can conclude that the correct option is A.
Demand should be right since its the public's demand what gets put out in the market for them to consume.
