Answer: The difference in the two future values is $2703.79.
We arrive at the answer at follows:
We need to find the future value of these investments.
<h3><u>
A. First investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 12%
No. of years (n) 7
No. of compounding periods per year (m) 12 (monthly)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3>B<u>
. Second investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 13%
No. of years (n) 7 No. of compounding periods per year (m) 2 (semi-annual)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3><u>C. Difference between the two Future values</u></h3>
Answer:
WIP inventory 904.91 debit
Finished goods 67.868,16 debit
COGS 35.239,43 debit
Factory overhead 104,012.5 credit
Explanation:
overhead rate_
642,500 / 514,000 = 1.25
labor cost
190,124 x 1.25 = 237.655 weight 33.88%
360,580 x 1.25 = 450.725 weight 65.25%
10,486 x 1.25 =<u> 13.107,5 </u> weights 0.87%
total overhead 701.487,5
actual overhead 805,500
over-allocated: 104.012,5
we debit all this concepts as they were understated and credit the applied overheas as it was under allocated.
Answer:
Explanation:
Pretax cost of debt is the annual rate(YTM) of the bond. Using a financial calculator, input the following to calculate it;
N = 5*2 = 10
PV = -(95% *10,000,000) = -9,500,000
Coupon PMT = (6%/2)*10,000,000 = 300,000
FV = 10,000,000
then compute semiannual rate; CPT I/Y = 3.604%
convert to annual rate = 3.604*2 = 7.21%(this is the pretax cost of debt)
After tax cost of debt is calculated because interest payable on debt has tax shield. The formula is as follows;
Aftertax cost of debt = pretax cost of debt (1-tax)
AT cost of debt = 7.21% (1-0.40)
AT cost of debt = 4.33%
Bartering is like trading and because now things are a little more expensive <span />
Answer:
D. The velocity of money increased this year.
Explanation:
As for the details provided, we know that the actual inflation is increasing rapidly, also the real income increased but not with the same level.
And still after so many measures initiated by the central bank the inflation has been increasing. This provides for the speed of increase in the value of money.
As with the increasing inflation that too after so many measures the velocity has been increasing of value of money which makes it more valuable.
Basically the power to buy decreases with the same amount of money.