For simplicity, we will assume 52 weeks in a year (instead of 365 days).
The rate of interest per week actually charged is




Effective Annual Rate (
EAR) is obtained by <em>compounding</em> the weekly rate for one year (52 weeks)



=
4454629.97%note: most calculators may not display this value with sufficient accuracy.
The corresponding
APR is obtained by <em>multiplying</em> the weekly rate by 52


=1188.57%
Answer:
Option E, is correct as effective interest $ 120,839
Explanation:
The coupon interest payable semi-annually is computed thus:
Semi-annual coupon =13%/2*$2000000
=$130,000
However the bond was issued at premium, using effective interest the first interest payment is calculated on the actual issue value of the bond of $2,197,080 using the market rate of interest
effective interest=11%/2*$2,197,080
=$ 120,839.40
Hence,the interest expense based on effective interest is $120,839 rounded to the nearest whole number
Option D is wrong because the effective interest is a semi-annual interest not an annual one.
Answer:
interchangeable parts and assembly lines
Explanation:
Answer:
c) AICPA accounting and auditing guide, Audits of Colleges and Universities and/or AICPA SOP 74-8, Financial Accounting and Financial Reporting by Colleges and Universities.
Explanation:
As accounting and auditing guide which is issued by AICPA for health care 3 gives full guidance on how to deal with financial reporting issues for the hospital so the accountant would look into it for any problem related to it.
Answer: For a competitive market, <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>
Explanation:
A perfectly competitive market has the following characteristics:
(a). In this particular market there are many buyers and sellers.
(b). Also each company makes similar product. i.e. the products are identical in nature.
(c). In this market buyers and sellers will have access to perfect information about price. and product.
(d). In a competitive market there are no barriers to entry into or exit from the market.
Therefore , <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>