Answer: 18.92%
Explanation:
The formula to find the compound amount :-
, where P is the Principal amount, r is the rate of interest and t is the time period.
Given : P= $1500
A = $6000
Time = 8 years
Then 
i.e. 
i
Taking natural log on both sides , we get
Answer:
Computation of cash received from the sale of the equipment:
D. $58,000.
Explanation:
Computation:
Sale of Equipment Account
Equipment account $240,000
less acc. depreciation 172,000
Net book value $68,000
less loss on sale 10,000
Cash received $58,000
Equipment Account
Year 1 balance $750,000
Year 2 balance 510,000
Sale of equipment $240,000
Accumulated Depreciation:
Year 1 balance $500,000
Year 2 balance 328,000
Sale of equipment $172,000
b) The sale of the equipment caused a loss of $10,000. The net book value of the equipment is $68,000. This implies that it was sold for $58,000 ($68,000 - $10,000). So, the cash received from the sale is $58,000.
Answer and Explanation:
Given that the dividend will grow at 20% for two years and then a constant 6% at third year
1st year dividend at 20%= $3
Present value of the dividend for the first year=PV factor at 15%(from table) = $2.61
2nd year dividend at 20% = $3.60
Present value of the dividend for the second year = PV factor at 15%(from table) $2.72
3rd year dividend at 6% growth rate =
$42.40
Present value of the dividend for the third year = PV factor at 15% = $32.06
Current price of the stock =$2.61+$2.72+$32.06
=$37.39
Answer:
B) sale; decrease
- If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market <u>SALE</u> of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will <u>DECREASE</u>.
Explanation:
The federal funds rate is the rate at which banks make overnight loans to other banks or financial institutions. If the supply of money is too high, then the interest rates will start to decrease.
Money is like any other good, and its price is determined by the supply and demand. The higher the supply, the lower the equilibrium price. The equilibrium price of money is the interest rate.
If the Fed wants to avoid the decrease in the interest rate, it must absorb excess supply of money, and the only way it can do it is by selling bonds.
The cost of the room in dollars is obtained by multiplying the given value with the conversion. This is shown below,
(€ 75) x ($1.298 / <span>€1)
The numerical value of the operation above is $97.35. Therefore, the answer is letter C. $97.35. </span>
