Answer:
The effective annual rate of interest is "10.38%".
Explanation:
The given values are:
Nominal annual interest rate,
Q = 10%
i.e.,
= 0.10
Quarterly compounding,
q = 4
Now,
The effective annual rate of interest will be:
= ![[{1 + (\frac{Q}{q} )}^q] - 1](https://tex.z-dn.net/?f=%5B%7B1%20%2B%20%28%5Cfrac%7BQ%7D%7Bq%7D%20%29%7D%5Eq%5D%20-%201)
On substituting the given values in the above formula, we get
= ![[{1 + (\frac{0.10}{4} )}^4] 1](https://tex.z-dn.net/?f=%5B%7B1%20%2B%20%28%5Cfrac%7B0.10%7D%7B4%7D%20%29%7D%5E4%5D%20%201)
= ![[(1 + 0.025)^4] - 1](https://tex.z-dn.net/?f=%5B%281%20%2B%200.025%29%5E4%5D%20-%201)
= 
= 
= 
On converting it into percentage, we get
= 
%
Answer:
6,000 on the left side of Equipment account; $5,000 on the right side of Accounts payable account; $1,000 on the right side of the Cash account
Explanation:
When fixed assets are bought whether paid for or not, debit the asset account with the monetary value if the asset, and credit cash or bank if payment is made or credit account payable account where purchase is on credit.
In this case, the following entries should be done:
Debit Equipment Account $6,000
Credit Cash Account $1,000
Credit Account Payable $5,000
Answer:
It is $329,209.31
Explanation:
Please attached sheet for computation.
Answer:
=$4.07 unit
Explanation:
<em>Weighted average contribution margin is applicable where a business sells more than one product in a constant mix or proportion. It gives an idea of how much is made on the average as contribution from th sale of a unit.</em>
It is determined as follows
Step 1
<em>Total contribution from a mix and total units</em>
<em>Total contribution from a mix</em>=(2500 × $3.50) + (2,000 × $4.80)
=$18,350
<em>Total units in a mix</em> = 2,500+ 2,000 = 4,500 units
Step 2
<em>weighted average unit contribution</em>
=$18,350/4,500units
=$4.07 unit
Answer:
A. double
Explanation:
Rule 70 is used to calculate the numbers of years it takes for an investment or variable to double in value given a certain growth rate. In this case, the variable is prices and the growth rate is inflation rate. It is calculated by dividing number 70 by inflation rate.
For example;
Assume inflation rate is 6%, the prices will double in ; 70/6 = 11.7 years
And if inflation is 2%, the prices will double in 70/2 = 35 years
