Answer:
Option (d) , Bank 4 offers the highest amount after a year
Explanation:
The total amount from each of the interest rates can be expressed as;
A=P(1+r/n)^nt
where;
A=Future value of investment
P=Initial value of investment
r=Annual interest rate
n=Number of times the interest is compounded annually
t=number of years of the investment
a). Bank 1
P=x
r=6.1%=6.1/100=0.061
n=1
t=assume number of years=1
replacing;
A=x(1+0.061/1)^(1×1)
A=x(1.061)
A=1.061 x
b). Bank 2
P=x
r=6%=6/100=0.06
n=12
t=1
Replacing;
A=x(1+0.06/12)^(12×1)
A=x(1.005)^12
A=1.0617 x
c). Bank 3
P=x
r=6%=6/100=0.06
n=1
t=1
Replacing;
A=x(1+0.06/1)^(1)
A=1.0600 x
d). Bank 4
P=x
r=6%=6/100=0.06
n=4
t=1
A=x(1+0.06/4)^(4×1)
A=x(1+0.015)^4
A=x(1.061)
A=1.0614 x
e). Bank 5
P=x
r=6%=6/100=0.06
n=365
t=1
A=x(1+0.06/365)^(365×1)
A=1.0618
Option (d) , Bank 4 offers the highest amount after a year
Answer:
B $377,400
Explanation:
Pretax Income = $1000,000
First following adjustment in the pretax income will be made
Add back the increase in reserve warranties because it will result in increase of warranty expense by $25,000.
Exceeding Book depreciation will be added to the book income.
Depreciation deduction will decrease the boon income.
Income chargeable to tax = $1,000,000 + $25,000 + $100,000 - $15,000
Income chargeable to tax = $1,110,000
Now Calculate the Income tax amount using rate of 34%
Income tax Expense = $1,110,000 x 34% = 377,400
Explanation:
Engineers contributed very significantly to a country's development from an agricultural economy to the one that includes manufacturing communication services and exploration to the country's natural resources like 10 hydro power oil and gas
Answer:
Goodwill Impairment (Debit)
Goodwill (Credit)
Explanation:
In case goodwill is impaired, then the entry to record this impairment will be Goodwill Impairment Debit and Goodwill Credit.
By crediting the Goodwill, the account will be reduced. This shows that the business is currently worth less than is accounted for. The Goodwill account is reduced to identify this difference.
The Impairment loss is an expense and must be reflected in the income statement. Therefore, while we reduce Goodwill amount from balance sheet. We record the expense on the income statement, which would mean that the current year profit amount will be reduced.
Answer:
Some wages, interest rates, tax rates, and government benefits are influenced by changes in the value of the CPI.
Explanation:
The CPI or consumer price index measures changes in prices of a basket of goods and services that represents consumer consumption in an economy. CPI is a widely accepted measure of inflation rate in a country in a period. Monitoring the CPI is, therefore, tracking the rate of inflation in the economy.
Inflation is a macroeconomic variable that influences borrowing, prices, and the currency's purchasing power. The government monitors inflation to ensure it within the target rate. A high or low inflation rate may affect the government's objective of stable prices and sustainable economic growth.
A high inflation rate causes interest rates to rise. The cost of borrowing becomes expensive when interest rates are high, which slows down the pace of business expansion and new investment. Business people will monitor CPI to determine if it's the right moment to borrow.
Workers are concerned with CPI as an increase in prices erodes their purchasing power. When prices are high, and wages don't increase, workers will be disadvantaged. They will be able to make fewer purchases, which is similar to getting a pay cut.