Answer:
certificate of deposit
Explanation:
A certificate of deposit (CD) is a financial instrument sold by banks
The bank gives this CD to Gwen. She cannot withdraw the cash until July 1, 2023
The certificate of deposit are risk-free investment. The difference with savings account is that a certificate of deposit has a fixed term and fixed interest rate and it is create with the idea of holding the title until maturity. Not doing so, may inccur in penalties so a portion of the interest will be negate.
As this is a financial instrument, the bank issued a title to the investor to recognize his investment.
Answer:
The interest expense company recorded during Year 2 on the 7% debentures is $27,535,600
Explanation:
As the interest expense is different from the interest payment made on the debenture. It also includes some other costs. Effective interest rate includes the effects of all related costs of debentures. So the interest expense of a debenture will base the effective interest rate of the debenture.
We can calculate the Interest expense on 7% debtures as below
Interest Expense = Value of Debenture x Effective interest rate
Interest Expense = $188,600,000 x 14.6%
Interest Expense = $27,535,600
Answer:A. assumes that demand for loanable funds increases with supply remaining unchanged
Explanation:
Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption. ... One way to make an investment is to lend money to borrowers at a rate of interest.
Answer:
Percentage of total return on Investment = <em>ROI = 17% </em>
Explanation:
Let’s
ROI = Return on Investment = ?
D = Dividends = $15
CGD = Capital Gain Distributions = $35
CGS = Capital Gain on Sale = $120
SP = Shares Purchased = 100
CS = Cost per share = $10.00
ROI = (D + CGD + CGS) / (SP * CS)
ROI = ($15 + $35 + $120) / (100 * $10.00)
ROI = 170 / 1,000
ROI = 0.17
Percentage: 0.170 x 100%
<em>ROI = 17% </em>
Answer:
b. maximum amount of output that can be produced given the labor force, capital stock, and technology.
Explanation:
GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically
On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate
Therefore option b is correct
