a recession is usually 9 to 18 months
Answer:
The amount received in cash is $2,328
Explanation:
The amount which is received in cash is computed as:
On January 20, the amount of $600 goods returns from customer, so the remaining balance is
= $3,000 - $600
= $2,400
On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is January 25. So,
= $2,400 x (100% - 3%)
= $ 2,400 x 97%
= $ 2,328
Answer:
10%
Explanation:
Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.
10% yearly interest rate = 5% semiannual interest rate
we must determine the PV of the 20 coupons paid and the face value at maturity.
to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80
the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89
the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.
Had to look for the options and here is my answer. Given that the bank possesses a liability that is worth $150 billion and its net worth is only $20 billion, then this would mean that the bank must have ASSETS OF $170 BILLION. Hope this answers your question.
To start their own business, usually this supports their local economy however still depending on their success.
