Answer:
C) Assets Increase and liabilities increase.
Explanation:
The Assets increase as a result of an inflow of cash as a current asset. Meaning there is an increase of cash. The liabilities increase as a result of a present loan or borrowing from the bank which is added to liabilities as an obligation.
Answer:
$650,752
Explanation:
The computation of the avoidable interest is shown below;
But before that following calculations must be done
Interest payable on short term loan
= $2,240,000 × 10%
= $224,000
Interest payable on long term loan
= $1,600,000 × 11%
= $176,000
Therefore,
Weighted average interest rate is
= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100
= 10.42%
Now
Avoidable interest is
= [$3,200,000 × 12%] + [($5,760,000 - $3,200,000) × 10.42%]
= $650,752
Answer:
t = 3.801784017 years rounded off to 3.80 years
Explanation:
We need to calculate the time it takes for the initial investment of $1.5 million to grow and have a future value of $3 million. The formula to calculate the future value of a sum of money is,
FV = I * (1+r)^t
Where,
- FV is the future value
- I is the initial investment amount
- r is the rate of return
- t is the time in years
3 = 1.5 * (1+0.2)^t
3 / 1.5 = 1.2^t
2 = 1.2^t
log (2) / log (1.2) = t
t = 3.801784017 years rounded off to 3.80 years
Answer:
The correct answer is letter "A": Experience differentiation.
Explanation:
Experience differentiation is an engagement method firms use to attract costumers' attention at its maximum level. Companies achieve this by surrounding consumers with an atmosphere where their five senses of the can be used. By doing this, consumers become more immersed in the product the company offers.
