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3 years ago

How do banks make profits?

Business

2 answers:

Fiesta28 [93]3 years ago

3 0

They make profits by people going into their banks

Gwar [14]3 years ago

3 0

Answer:

Banks make money from service charges and fees. Banks also earn money from interest they earn by lending out money to other clients.

Explanation:

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Weiss Lenscorp, a maker of camera lenses, provides a 3-year warranty against defects on all of its products. In fulfilling its w

GuDViN [60]

Answer:

warranty liablity account ending balance: 3,510,000

Explanation:

In total, we expect a warranty expense for 6% for each sale distributed among three years.

For the 32,000,000 million sales for 2019 we expect:

32,000,000 x 6% = 1,920,000 warranty expense.

warranty liaiblity

debit credit

beginning 3,370,000

expenditures 1,780,000

warranty expense 1,920,000

balance 3,510,000

6 0

3 years ago

Consider a portfolio consisting of only Duke Energy and Microsoft. The percentage of your investment (portfolio weight) that you

Leokris [45]

Answer:

(2) 4%

Explanation:

The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;

Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2

Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%

Solving for this we get the risk free investment at 4%.

3 0

3 years ago

What do you prefer Aldi or Lidl? and why?

Jlenok [28]

Aldi!!! Personal preference due to the organization.

4 0

3 years ago

A new highway is to be constructed.

baherus [9]

Answer:

Desing B

Total Present worth $ 502.485,35‬

Annual worth: $ 49,722.003

Option 2:

Total Present worth $ 666.441,33‬

Annual worth: $ 53,845.798

Explanation:

<h2>Desing A</h2>

$85 x 5280 = 448,800

$4 x 3 x 5280 = 63,360

$8000 x 4 = 32,000

total cost: 544,160‬

Annual cost:

11,800 + 300 = 12,100

PV of the annual maintenance:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 12,100.00

time 16

rate 0.06

$12100 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\$

PV $122,281.3328

Present worth:

total cost to construct 544,160‬ + maintenance $122,281.33 = 666.441,33

Annual worth:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 544,160

time 16

rate 0.06

$544160 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\$

C $ 53,845.798

<h2>Desing B</h2>

a mile is equivalent to 5,280 foot

paviment $40 x 5,280 = $ 211,200

sood ditched 2 per foot x 5,280 foot per mile x $1.40 = $ 12,038.4

pipe culvert 2,200 x 2 = 4,400

Total value to construct: 227.638,4‬

PV of maintenance:

replacement 2,400 x 2 = 4,800 (in 8 years)

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $4,800.0000

time 8.00

rate 0.06000

$\frac{4800}{(1 + 0.06)^{8} } = PV$

PV 3,011.5794

maintenance $2,900

culverts 2 x $ 230 = $ 460

ditch 1.45 x 5,280 x 2 = $ 15,312

Total yearly cost: 18.672‬

PV of this annuity over 16 years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 18,672.00

time 16

rate 0.06

$18672 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\$

PV $188,697.2765

PV of the replacement bituminous concrete

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $211,200.0000

time 16.00

rate 0.06000

$\frac{211200}{(1 + 0.06)^{16} } = PV$

PV 83,138.0951

Present worth:

Total value to construct: $ 227.638,4‬ +

yearly cost PB $ 188,697.28 +

concrete replacement $ 83,138.0951

culvert replacement: $ 3,011.58

Total Present worth 502.485,35‬

Annual worth:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

$502485.35 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\$

C $ 49,722.003

6 0

3 years ago

A company has $73M in assets and $24M in liabilities. What is the value of equity?

kaheart [24]

Answer:

$\boxed{\sf (C) \ \$49M}$

Given:

Assets = $73M

Liabilities = $24M

To Find:

Value of equity

Explanation:

Total equity is what is left over after you subtract the value of all the liabilities of a company from the value of all of its assets.

Formula:

$\boxed{ \bold{Equity = Assets - Liabilities}}$

By substituting value of assets & liabilities in the formula we get:

$\sf Equity = \$73M - \$24M \\ \\ \sf Equity = \$49M$

5 0

3 years ago