Answer:
a. True
Explanation:
The first study might have misrepresented the reading preferences as the second research clearly indicated that most of the readers preferred mystery novels. The habits of Waymarsh citizens is reading and they visit library very frequently but they prefer reading mystery, suspense and thriller novels which create interest in eyes of readers. They firstly said that they prefer reading classics but when actual books most frequently read were researched then it was found that citizens prefer reading mystery books.
Majestic Homes stock traditionally provides an 8% rate of return.The company just paid a $2 a year dividend which is expected to increase by 5% per year.If you are planning on buying 1,000 shares of this stock next year,how much should you expect to pay per share if the market rate of return for this type of security is 9% at the time of your purchase?
A) $48.60
B) $52.50
C) $55.13
D) $57.89
E) $70.00
Answer:
C) $55.13
Explanation:
Dividend in one year = Current dividend * (1 + growth rate)
Dividend in one year = $2 * (1+0.05)
Dividend in one year = $2 * 1.05
Dividend in one year = $2.1
Price in one year = Recent dividend * (1+growth rate) / (cost of equity - growth rate)
Price in one year = $2.1 * (1+0.05) / (0.09 - 0.05)
Price in one year = $2.1 * 1.05 / 0.04
Price in one year = $2.205 / 0.04
Price in one year = $55.125
Price in one year = $55.13
Armstrong is a well-known producer and seller of rose bushes. The company's marketing manager is interested in knowing what gardeners think about its new line of hardy miniature rose bushes. Armstrong wants to know if the majority of gardeners perceive roses as a high-maintenance plant. Which of the following is an example of primary data that Armstrong could use in this research project?
a. The survey data gathered for the new edition of the Reader’s Digest Gardening book.
b. Summaries of consumer purchases from a gardening catalog retailer.
c. A study of consumer complaints about their plant purchases from a large discount store.
d. Discussions among focus groups made up of small number of gardeners led by an interviewer.
Answer:
An example of primary data that Armstrong could use in this research project is:
d. Discussions among focus groups made up of small number of gardeners led by an interviewer.
Explanation:
Primary data is directly collected by the researcher. It is the opposite of secondary data, which is data collected from primary sources and made available for use in a research. Primary data is first-hand information collected during a research project. Focusing on the discussions by gardeners will enable Armstrong to assess their perceptions about rose as a high-maintenance plant.
A country has an absolute advantage in trade when it:
A.is the only country that produces a particular good.
B.has a lower opportunity cost producing a good than another country.
C.can produce a good more efficiently than another country.
D.produces all the essential goods its citizens require.
Answer:
B
Explanation:
On January 1, 2020, a company buys a piece of equipment costing $666,633 with a 14% installment note. The note will be paid off with 6 semiannual payments over three years (2 payments a year for 3 years). Each payment is $139,857.
Required:
Prepare the installment note schedule
Answer:
Installment Note Schedule:
Period Beginning Balance Interest Principal Ending Balance
1. Year #1 $666,633.00 $46,664.31 $93,192.49 $573,440.51
2. Year #1 $573,440.51 $40,140.84 $99,715.97 $473,724.54
3. Year #2 $473,724.54 $33,160.72 $106,696.09 $367,028.45
4. Year #2 $367,028.45 $25,691.99 $114,164.81 $252,863.64
5. Year #3 $252,863.64 $17,700.45 $122,156.35 $130,707.29
6. Year #3 $130,707.29 $9,149.51 $130,707.29 $0.00
Explanation:
a) Data and Calculations:
Cost of equipment = $666,633
Rate of interest = 14%
Payment terms = semiannual payments over three years
Payment for each period = $139,857
Loan Amount $666,633
Loan Term 3 years 0 months
Interest Rate 14
Compound Semi-annually
Pay Back Every 6 Months
Results:
Payment Every 6 Months = $139,856.80 = $139,857 approx.
Total of 6 Payments = $839,140.82
Total Interest = $172,507.82
In most companies--especially larger ones in which operations cut across different products, industries, and geographical areas--crafting strategy is Multiple choice question. the primary responsibility of the board of directors. a collaborative team effort involving managers at all levels. done only by the CEO or owner-entrepreneur. performed only by top executives.
Answer:
The answer is B
Explanation:
I got it right
Your company purchases $50,000 of inventory from a wholesaler who allows you 45 days to pay. In addition, the wholesaler offers a 3% discount if payment is made within 12 days. These payment terms would be expressed as: A. 0.03/12, n/45. B. n/45, 0.03/12. C. 3/12, n/45. D. n/45, 3/12.
Answer:
C. 3/12, n/45
Explanation:
These payment terms would be expressed as : 3/12, n/45.
This is because :
3/12 means 3 % discount is granted if payment is made within 12 days.n/45 means supplier allows customer to pay within 45 days in total.You are considering investing in a bank account that pays a nominal annual rate of 7%, compounded monthly. If you invest $3,000 at the end of each month, how many months will it take for your account to grow to $275,000
Answer:
To answer is 73.6 months(approximately 74 days)
Explanation:
Future value (FV) = $275,000
Annual interest rate(i) = 7%
Monthly interest rate = 0.58%(7/13)
Periodic cash outflow (PMT) = $3,000
Number of months (N) = ?
Using a texas BA II Plus calculator
FV = 275,000; PMT = -3,000; I/Y = 0.583 CPT N= 73.6
Therefore the number of months is 73.6 months. Approximately, 74 days
The following data relate to direct materials costs for November: Actual costs 4,700 pounds at $5.40 Standard costs 4,500 pounds at $6.00 What is the direct materials quantity variance
Answer:
$2,820 favorable
Explanation:
Calculation to determine direct materials quantity variance
Using this formula
Direct materials price variance = (Actual materials cost per lb. - Standard materials cost per lb.) * Actual quantity lb
Let plug in the formula
Direct materials price variance = ($5.40 - $6.00) * 4,700 lbs.
Direct materials price variance = (-$0.60) * 4,700 lbs.
Direct materials price variance = $2,820 favorable
Therefore the direct materials price variance is $2,820 favorable.
You are considering two projects. Project 1 currently costs $15 million, which is to be paid this year; the returns are $9 million after year one and $5 million after year two. Project 2 currently costs $13 million, again to be paid this year; the returns are $10 million after year one and $6 million after year two. At an interest rate of 8%, the difference between the present value of Project 1's future revenues and Project 1's current costs is equal to , while the difference between the present value of Project 2's future revenues and Project 2's current costs is equal to . (Hint: Round intermediate calculations to two decimal places.)
Answer:
$-2.38 million
$1.40 million
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Project 1
cash flow in year 1 = 9 million
cash flow in year 2 = 5 million
i = 8%
pv = 12.6
12.6 - 15 = -2.38
Project 2
cash flow in year 1 = 10 million
cash flow in year 2 = 6 million
i = 8%
pv = 14.40
14,40 - 13 = 1.40
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the sales journal.
May 2 Sold merchandise costing $390 to B. Facer for $585 cash, invoice no. 5703.
5 Purchased $2,850 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $1,053 to J. Dryer for $1,527, terms 2/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $263 to R. Lamb for $421, terms n/30, invoice no. 5705.
16 Received $1,496 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment (noninventory) for $900 cash to Golf, Inc.
25 Sold merchandise costing $440 to T. Taylor for $691, terms n/30, invoice no. 5706.
Journalize the May transactions that should be recorded in the sales journal assuming the perpetual inventory system is used.
Answer:
Finer Company
Sales Journal:
May 7 Debit Accounts Receivable (J. Dryer) $1,527
Credit Sales Revenue $1,527
To record the sale of goods on terms 2/10, n/30, via invoice no. 5704.
May 12 Debit Accounts Receivable (R. Lamb) $421
Credit Sales Revenue $421
To record the sale of goods on terms n/30, via invoice no. 5705.
May 25 Debit Accounts Receivable (T. Taylor) $691
Credit Sales Revenue $691
To record the sale of goods on terms n/30, via invoice no. 5706.
Explanation:
a) Data and Analysis for Sales Journal:
May 7 Accounts Receivable (J. Dryer) $1,527 Sales Revenue $1,527 terms 2/10, n/30, invoice no. 5704.
May 12 Accounts Receivable (R. Lamb) $421 Sales Revenue $421 terms n/30, invoice no. 5705.
May 25 Accounts Receivable (T. Taylor) $691 Sales Revenue $691 terms n/30, invoice no. 5706.
Your portfolio is 290 shares of Callahan, Inc. The stock currently sells for $99 per share. The company has announced a dividend of $3.00 per share with an ex-dividend date of April 19. Assuming no taxes, how much will your stock be worth on April 19
Answer: $96
Explanation:
On the ex-dividend date, the stock price usually falls by the value of the dividend.
Value of stock on April 19 is:
= Value of stock - Dividend
= 99 - 3
= $96
draw five sector of macroeconomic model
Answer:
Here's my Macroeconomic model.
Explanation:
Thus, the five-sector model includes (1) households, (2) firms, (3) government, (4) the rest of the world, and (5) the financial sector. The financial sector includes banks and non-bank intermediaries that engage in borrowing (savings from households) and lending (investments in firms).
what are the marketing channel distribution strategy
Answer:
The three types of distribution channels are wholesalers, retailers, and direct-to-consumer sales. ... Retailers are generally the customers of the wholesalers and offer high-touch customer service to the end customers.
ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage value. The following are estimated for Year 1 of the project:
Sales = $100,000 Production costs = $82,600 Depreciation expense = $6,000
Calculate the following for ABC Company for Year 1:
a. Operating income =
b. Average investment =
c. Accounting rate of return =
Answer:
a. Operating Income = Sales - Production Cost - Depreciation Expense
Operating Income = $100,000 - $82,600 - $6,000
Operating Income = $11,400
b. Average Investment = (Initial Equipment Cost + Residual Value) / 2
Average Investment = ($60,000 + $0) / 2
Average Investment = $60,000 / 2
Average Investment = $30,000
c. Accounting Rate of Return = (Operating Income / Average Investment) * 100
Accounting Rate of Return = ($11,400 / $30,000) * 100
Accounting Rate of Return = 0.38 * 100
Accounting Rate of Return = 38%
Dolan Company reports its income from investments under the equity method and recognized income of $25,000 from its investment in Moss Co. during the current year, even though no dividends were declared or paid by Moss during the year. On Dolan's statement of cash flows (indirect method), the $25,000 should:________. A) not be shown. B) be shown as cash inflow from investing activities. C) be shown as cash outflow from financing activities. D) be shown as a deduction from net income in the cash flows from operating activities section.
Answer:
The answer is B.
Explanation:
The correct option is B.
Dolan company has an investment in Moss which gave him an income(inflow) of $25,000. So on Dolan's statement of cash flow, this transaction will be under 'Cash flow from Investing Activities' and the line item will be:
Cash inflow from Investing Activities - $25,000.
It doesn't matter whether a cash flow is prepared in a direct or indirect manner for Investing Activities or Financing Activities, it only affect Operating Activities.
In economics, the cost of production is defined as the expenditures incurred to
obtain the factors of production such as labor, land, and capital that are
needed in the production process of a product. Explain the following in relation
the total cost in economics
i. A firm pays its accountant an annual allowance of $10,000. Is this an
economic cost? Explain AN, 5MARKS
Answer:
12
Explanation:
i know it
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals of the debit and credit columns show debits of $28,480 and credits of $38,055. This indicates that a.the company has a net income of $9,575 for the period. b.neither net income or loss can be calculated because it is found on the income statement c.the amounts are out of balance and need to be corrected. d.the company has a net loss of $9,575 for the period.
Answer:
This indicates that
d.the company has a net loss of $9,575 for the period.
Explanation:
a) Data and Calculations:
Total debits of the balance sheet (assets) = $28,480
Total credits of the balance sheet (liabilities + equity) = $38,055
Difference (net loss) = $9,575 ($38,055 - $28,480)
b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal. This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.
You purchase a call option on Swiss Francs (SF) for a premium of $.02, with an exercise price of $1.0325. The option will not be exercised until the expiration date, if at all. If the spot rate on the expiration date is $1.0072, your net profit/loss on one contract containing 10,000 SF units. will be: Group of answer choices $53 -$53 $200 -$200 $530
Answer:
$53
Explanation:
Payoff of the option = Strike price - Stock price at end
Payoff of the option = $1.0325 - $1.0072
Payoff of the option = $0.0253
Profit from the option = Payoff - Premium paid
Profit from the option = $0.0253 - $0.02
Profit from the option = $0.0053
Net profit/loss on one contract containing 10,000 SF units will be:
= 10,000 SF units * $0.0053
= $53 Profit
Zordan Tools Corporation makes and sells brushes and combs. It can sell all of either product it can make. The following data are pertinent to each respective product: Brushes Combs Units of output per machine hour 8 20 Selling price per unit $12.00 $4.00 Product cost per unit Direct material $1.00 $1.20 Direct labor 2.00 0.10 Variable overhead 0.50 0.05 Total fixed overhead is $380,000. The company has 40,000 machine hours available for production. What sales mix will maximize profits
Answer:
Zordan Tools Corporation
Brushes Combs
The Sales mix that maximizes profits is 2,800 880
Explanation:
a) Data and Calculations:
Brush Comb
Units of output per machine hour 8 20
Selling price per unit $12.00 $4.00
Product cost per unit
Direct material $1.00 $1.20
Direct labor 2.00 0.10
Variable overhead 0.50 0.05
Total variable cost per unit $3.50 $1.35
Contribution margin per unit $8.50 $2.65
Contribution margin per hour $68 $53 ($2.65 * 20)
Contribution margin ratio = 0.56 0.44 ($53/$121)
Available machine hours for production = 40,000
Allocation of machine hours per
contribution margin = 22,400 17,600 (40,000 * 44%)
Units produced 2,800 880 (17,600/20)
You are given the following information for Dawn Corp.:
Decrease in inventory $ 550
Decrease in accounts payable 225
Increase in notes payable 210
Increase in accounts receivable 240
Question Completion:
Did cash go up or down? By how much?
Answer:
Dawn Corp.
The cash increased by $295.
Explanation:
a) Data and Calculations:
Decrease in inventory $ 550
Decrease in accounts payable -225
Increase in notes payable 210
Increase in accounts receivable -240
Increase in cash balance = $295
b) A decrease in inventory and an increase in notes payable sources of cash inflow. On the other hand, a decrease in accounts payable and an increase in accounts receivable are sources of cash outflow.
Financial Math
Q197948
7 hours 18 min
Bonita intends to open a small fabric shop and borrows the money for it from her aunt Magda. Bonita feels that she will only be able to start repaying her debt after three years. Bonita will then pay aunt Magda R105 000 per year for five years. Money is worth 19,5% per year.
The present value of Bonita’s debt at the time she will start paying aunt Magda back is
[1] R408 978,93.
[2] R317 500,78.
[3] R222 924,04.
[4] R525 000,00.
[5] R436 649,07.
Start working$1
Archive Tasks & Questions are stored in archive for 14 days
Biochemistry
Q200749
Deadline passed
2) Why are the ratios of OD260/OD280 and OD260/OD280 for clean nucleic acids about 2.0? Show your answer by drawing and explaining a DNA absorbance spectrum from 200 to 300 nm. Which type of contaminations can you detect with these measurements?
Answer approved2$1
Finance
Q199880
Deadline passed
Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company
ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm is planning dividend payout ratio of 60%. Calculate:
a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.
b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether
dividend is to be declared or not.
You are declined.Your offer: $1
Financial Math
Q196935
Deadline passed
A savings account pays interest at the rate of 5% per year, compounded semi-annually. The amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next ten years is
[1] R3 144,47.
[2] R6 386,16.
[3] R1 930,43.
[4] R3 897,29.
[5] none of the above
You are declined.3Your offer: $1
Financial Math
Q198898
Deadline passed
Mr Mahlangu invests R20000 to play lobola. After 48 months he receives 65000. The interest on the investment is compounded quarterly. Determine the yearly interest rate at which money was invested. Give your answer as a percentage rounded to two decimal places.
You are declined.3Your offer: $1
Biochemistry
Q198087
Deadline passed
11. Indicate which type of bonds are involved in the following
a. Formation of the primary structure of a protein
b. Stabilization of the alpha helix and beta pleated sheet structures of proteins
12.Identify the biomolecular composition of the following cells
a.Endoplasmic reticulum
b.Mitochondria
c.Cytoskeleton
d. Nucleus
13 Under aerobic catabolism of glucose ,in which compartment of the eukaryotic cell does the following reaction occurs?
a conversion of pyruvate to acetyl CoA
b.conversion of succinyl -CoA to succinate
c.conversion ofNADH to ATP.
d.conversion of phosphologlycerate to phosphoenolpyruvate.
14. Briefly outline how ATP is generated from glucose in the absence of oxygen. What is the importance of this pathway?
15. Briefly explain the process by which excess dietary carbohydrates and lipids are stored in the human body
Answer approved2$1
Financial Math
Q197948
Deadline: 03.06.21, 14:15
Bonita intends to open a small fabric shop and borrows the money for it from her aunt Magda. Bonita feels that she will only be able to start repaying her debt after three years. Bonita will then pay aunt Magda R105 000 per year for five years. Money is worth 19,5% per year.
The present value of Bonita’s debt at the time she will start paying aunt Magda back is
[1] R408 978,93.
[2] R317 500,78.
[3] R222 924,04.
[4] R525 000,00.
[5] R436 649,07.
Answer:
gggggggggggggggggggg
FIllmore Company began operations on Sept. 1 by purchasing $4,400 of inventory and $750 of cleaning supplies. During the month, the company generated $6,000 of sales revenue. On Sept. 30, the company had $1,800 of inventory remaining, along with $550 of cleaning supplies. What was FIllmore Company's gross profit for the month of September?
Answer: $3,400
Explanation:
Gross Profit = Sales revenue - Cost of Goods sold
Cost of good sold = Opening stock + Purchases of inventory - Closing stock of inventory
= 0 + 4,400 - 1,800
= $2,600
Gross Profit = 6,000 - 2,600
= $3,400
In 2007, Gillette saw an opportunity to capture the market of 500 million Indians who used double edge razors with no protection between the blade and the skin. Gillette sought to make an inexpensive and safe disposable razor. Their first product, The Vector failed because it always clogs. What do you think went wrong
Answer:
Gillette in India
The failure of the Vector was caused by the fact that Indian men have longer and thicker hair, which the lack of earlier research in the targeted demographic segment did not discover.
Explanation:
Since Indian men have longer and thicker hair than the local consumers of Gillette's razor products in America, an earlier research would have uncovered the fact. Thereafter, the discovery would have been incorporated into the design and production of Vector for the Indian market. No wonder, with its Mach 3 Turbo razor, Gillette overcame its initial inertia and handicap and made a success of the razor business in India.
What is the present value of a perpetuity of $20,000 per month, if the first cash flow will be received exactly nine months from now, and the stated rate is 12% APR compounded monthly
Answer:
$1,828,679.65
Explanation:
The computation of the present value of the perpetuity is shown below;
The Present value of the perpetuity is
But before that as on the start of the perpetuity is determined using the formula,
= Perpetuity Amount ÷ Monthly rate
= $20,000 ÷ 1%
= $2,000,000
Now
Present value today is
= Present value of perpetuity as on the start of the perpetuity ÷ (1 + Monthly rate)^Months
= $2,000,000 ÷ (1 + 1%)^9
= $2,000,000 ÷ 1.093685273
= $1,828,679.65
3. How would you evaluate IMAX's international expansion to date?
Answer:
yes
Explanation:
yes
The best evaluation of the expansion of the IMAX is that there is a faster spread of the business internationally than domestically.
What is a Business Expansion?This refers to the period of growth peak when a business has to seek extra options to develop and generate more profit.
Hence, we can see that from the expansion of IMAX, there is the creation of more theatres in India as they have entered a business partnership with Inox to bring the total number of contracted theatres in India to 40
Read more about business expansion here:
https://brainly.com/question/24553900
21. Website: https://www.responsibletravel.com/
Responsibletravel.com (RT) was launched in April 2001, with backing from Anita Roddick (the
founder of the Body Shop). It is the first and largest business promoting and selling responsible
and eco-travel globally. RT likes to get the inside track on places, to discover travel secrets away
from the tourist crowds. It has found specialists who know places intimately to run the tours help
you to travel like a local'. RT wants to ensure the place its customers travel to remain special
unspoilt by tourism.
RT bases its entire operation on a socially and ecologically sustainability model that aims to help
rein invent the tourism industry for the long-term benefit of local people, the environment,
travelers and the tourism industry. The entire premise of RT's business is to market and distribute
more responsible holidays, thereby creating more jobs for local people, greater income for local
people and increased benefits for conservation, whilst at the same time minimizing negative
impacts on local environments and cultures.
A) Formulate a definition for the term 'social sustainability in your own words (RAK) *
Suppose that 57% of all people with credit records improve their credit rating within three years. Suppose that 22% of the population at large have poor creditratings within three years. What percentage of then people who will improve their credit records within the next three years are the ones who currently have good credit ratings? ratings, and of those only 25% will improve their credit
Answer:
(a) The percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) The percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
Explanation:
Note: This question is not properly arranged. It is therefore, properly rearranged before answering the question as follows:
Suppose that 57% of all people with credit records improve their credit ratings within three years. Suppose that 22% of the population at large have poor credit records, and of those only 25% will improve their credit ratings within three years. (a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years? (b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
The explanation of the answers is now provided as follows:
Based on the question, we have:
Percentage that improve credit rating = 57%
Percentage that do NOT improve credit rating = 100% - Percentage that improve credit rating = 100% - 57% = 43%
Percentage with poor credit rating = 22%
Percentage with good credit rating = 100% - Percentage with poor credit rating = 100% - 22% = 78%
Therefore, we have:
(a) What percentage of people currently have poor credit ratings and will improve their credit records within the next three years?
Percentage with poor credit rating that will improve credit records = Percentage with poor credit rating * Percentage that improve credit rating = 57% * 22% = 12.54%
Therefore, the percentage of people currently have poor credit ratings and will improve their credit records within the next three years is 12.54%.
(b) What percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings?
Percentage with good credit rating that will improve credit rating = Percentage that improve credit rating * Percentage with good credit rating = 57% * 78% = 44.46%
Therefore. the percentage of the people who will improve their credit records within the next three years are the ones who currently have good credit ratings is 44.46%.
What should be the function of money? What do you mean by M2?
subject Macroeconomics, please please help...
Money is any object in which you can exchange for goods or services. We consider this currency. Money is also a store of value so that you can get those goods and services at a later time (so you don't have to immediately use up the currency right away if you don't need to).
If at some future date, the unit of money isn't able to purchase as much as it used to, then we say that inflation has occurred. For example, if a loaf of bread costs $1 today but then $5 ten years from now, then we say inflation has kicked in.
-------------------------
Before we talk about M2, it helps to start with M0. That's a zero and not the letter 'oh'. In economics, M0 is the total collection of all cash (bills and coins) that are in circulation. This means we're just talking about physical things people can touch. Building to M1, it involves everything M0 talks about plus things like travelers checks and demand deposits. So if you're talking about M1, then you involve all physical cash as well.
Then finally moving to M2, it involves everything M0 and M1 does, plus savings accounts and time deposits. By "time deposits", I mean things like mutual funds and money market accounts. Basically things you may hear about when talking about wall street.
In short, M2 involves all physical cash plus other electronic stores of value (this is a fairly vague definition but it may work in many settings). It does not involve large time deposits as that is what M3 handles.
Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
181 5 $ 317
335 17 1,080
48,000 13 185,382
40,353 30 531,618
Answer:
11.86%
7.13%
19.95%
8.97%
Explanation:
interest rate = [tex]\frac{future value}{present value}}^{\frac{1}{n} } - 1[/tex]
(317/181)^ (1/5) - 1 = 11.86%
1080/335)^(1/17) - 1 = .13%
(185,382/48,000)^(1/13) - 1 = 19.95%
(531,618 / 40,353)^(1/30) - 1 = 8.97%
The interest rate in the 1 case is 5.01%, 2 case is 5.79%, 3 case is 8.05%, 4 case is 10.60%.
What is interest rate?An interest rate is the amount of interest owed per period, as a quotient of the amount lent, deposited, or borrowed.
Computation of the interest rates :The formula for future value is:
[tex]\text{FV}= \text{PV} \ (1+r)^n[/tex]
where,
PV=present value
r=interest rate
n =number of periods/ years
FV = future value.
Then, the formula for finding r is :
[tex]\text{FV}= \text{PV} \ (1+r)^n\\\\r= (\dfrac{\text{FV}}{\text{PV}})^\dfrac{1}{\text{n}-1}[/tex]
case1:put the above formula in case 1 we get:
[tex]r= (\dfrac{\text{\$231}}{\text{\$190}})^\dfrac{1}{4}-1}\\\\r= (\dfrac{\text{\$231}}{\text{\$190}})^{0.25-1}\\\\r=(1.21578947)^{0.25-1}\\\\r=1.05006116 -1\\\\r=0.05006116\times100\\\\r=5.01%[/tex]
case2:Put the above formula in case 2 we get:
[tex]r= (\dfrac{\text{\$854}}{\text{\$310}})^\dfrac{1}{18}-1}\\\\r= (\dfrac{\text{\$854}}{\text{\$310}})^{0.0555-1}\\\\r=(2.75483871)^{0.0555-1}\\\\r=1.05785304 -1-1\\\\r=0.05785304\times100\\\\r=5.79%.[/tex]
case3:Put the above formula in case 3 we get:
[tex]r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^\dfrac{1}{19}-1}\\\\r= (\dfrac{\text{\$1,48,042}}{\text{\$34,000}})^{0.0526-1}\\\\r=(4.35417647)^{0.0526-1}\\\\r=1.08045444 -1\\\\r=0.08045444\times100\\\\r=8.05%[/tex]
case4:Put the above formula in case 4 we get:
[tex]r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^\dfrac{1}{25}-1}\\\\r= (\dfrac{\text{\$412,862}}{\text{\$36,261}})^{0.04-1}\\\\r=(12.4127958)^{0.04-1}\\\\r=1.10599913 -1\\\\r=0.10599913\times100\\\\r=10.60%.[/tex]
Learn more about interest rate, refer:
https://brainly.com/question/4626564
A machine that cost $644,000 has an estimated residual value of $28,000 and an estimated useful life of 28,000 machine hours. The company uses units-of-production depreciation and ran the machine 8,000 hours in year 1, 10,000 hours in year 2, and 7,000 hours in year 3. Calculate its book value at the end of year 3.
Answer:
94,000
Explanation:
Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)
( $644,000 - $28,000) / 28,000 = 22
1 = 22 x 8000 = 176,000
2= 22 x 10,000 = 220,000
3 22 x 7000 = 154,000
Book value = cost of asset - accumulated depreciation
$644,000 - (176,00 + 220,000 + 154,000)
