1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arlecino [84]
3 years ago
5

Kimble Electronics issued its 6%, 20-year bonds payable at a price of $855,000 (face value is $900,000). The company uses the st

raight-line amortization method for the bond discount or premium. Interest expense for the first year is:
Business
1 answer:
il63 [147K]3 years ago
6 0

Interest expense for the first year is: $56,250

Solution:

Kimble Electronics issued = 6%, 20-year bonds payable

The corporation follows the straight-line amortization approach for the discount or premium on debt.

$900,000 - $855,000= $45,000

$45,000/20 years= $2,250 per year

$900,000 * 0.06 = $54,000

$2,250 + $54,000 = $56,250 interest expense.

You might be interested in
A software package created by Navarro & Associates can be used for analyzing and designing three-sided guyed towers and thre
Andru [333]

Answer:

432.12

Explanation:

3 0
3 years ago
First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest
Anarel [89]

Answer:

$14,343.25

Explanation:

First city bank pays 8% simple interest in a savings account

Second city bank pays 8% interest compounded annually

$68,000 is deposited deposited in each of the bank

The first step is to calculate the simple interesr per year of first city bank

= principal × rate

= 68,000 × 8/100

= 68,000 × 0.08

= 5,440

The interest earned for the period of 8 years can be calculated as follows.

= 5,440 × 8

= 43,520

The balance at the end of 8 years can be calculated as follows

= 68,000 + 43,520

= 111,520

The next step is to calculate the future value of second city bank

= principal × (1+R)^n

= 68,000 × (1+8%)^8

= 68,000 × (1+0.08)^8

= 68,000 × 1.08^8

= 68,000 × 1.85093021

= 125,863.25

Therefore the amount of money earned from second city bank at the end of 8 years can be calculated as follows

= 125,863.25-111,520

= 14343.25

Hence the money that was earned from second city bank at the end of 8 years is $14,343.25

8 0
3 years ago
If short-run equilibrium output equals 10,000, the income-expenditure multiplier equals 10, and potential output (Y*) equals 9,0
lyudmila [28]

Answer: Option (b) is correct.

Explanation:

Given that,

short-run equilibrium output = 10,000

income-expenditure multiplier = 10

potential output (Y*) = 9,000

Expenditure multiplier = \frac{1}{1-slope\ of AE function}

10 = \frac{1}{1-slope\ of AE function}

Slope of AE function = 0.9

slope of AE =  MPC (1-t)  t =0,

MPC = 0.9

Delta Y (DY) = 1000

government expenditure multiplier ⇒ \frac{1}{1 - MPC} = 10

Delta G = \frac{DY}{government\ expenditure\ multiplier}

             = \frac{1,000}{10}

             = 100

Government purchases must be Decrease by 100.

4 0
3 years ago
Why do you think compound interest is described by some as a mathematical explosion?
tekilochka [14]

Explanation:

what is the first tink sol do you with your money ? g i v e TRUE ore false You should save first , give second and sens third false

3 0
2 years ago
A grocery chain is interested in exploring the impact effective supply chain management would have. Suppose that for every $1 of
Verdich [7]

Answer:

$3.70

Explanation:

In this question we have to assume the items values

Let say

Sales = $100

So supply chain it spends 50% i.e $50

Profit is 4% i.e $4

Since the 46% is dividend among fixed and production costs

So the fixed cost is $23 and variable cost is $23

Now if the sales increase by $X, the revenue will increase by X.

So it would also increased the cost by X × (0.5+0.23)

And in overall, the profit is also increased

Plus it is given that there is  27% profit margin

So, the equation is

0.27X = 1

Therefore X = $3.70 with additional profit of $1

3 0
3 years ago
Other questions:
  • Barney has a balance of $780 on a credit card with an APR of 31.3%, compounded monthly. About how much will he save in interest
    7·2 answers
  • You have $5,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with
    6·1 answer
  • Suppose that jack, sophia, and hal enter into a contract to close on the business without the non-competition agreement. jack st
    5·1 answer
  • The closing entry process consists of closing:A)all asset and liability accounts.B)out the Retained Earnings account.C)all perma
    5·1 answer
  • What protocol, developed by Netscape in 1994, is designed to create an encrypted data path between a client and server that coul
    10·2 answers
  • All of the following are assumptions of cost-volume-profit analysis except a.the sales mix is constant. b.costs can be divided i
    13·1 answer
  • Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because
    6·1 answer
  • Wenjing purchases a bond for $2,000 with 12 remaining $40 quarterly coupon payments. The bond broker who sells her the bond reas
    13·1 answer
  • Soda companies are worried because sales have fallen flat. People today are more concerned about their sugar intake and want to
    5·2 answers
  • Accounts payable, notes payable, and bonds payable are all common ______. multiple choice question. categories of assets liabili
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!