Answer:
Explanation:
First we need the calculate the YTM
Use following Following formula
Price of the bond = C x ( 1 - ( 1 + r )^-n / r + F / ( 1 + r )
Where
C = Coupoon Payment = $1,000 x 6.5% = $65
n = numbers of periods = 20
F =Face value = $1,000
Priec of the bond = $950
r = YTM = ?
Placing values in the formula
$950 = $65 x ( 1 - ( 1 + r )^-20 / r + $1,000 / ( 1 + r )
r = 6.971%
Now calculte the price after 5 years
n = numbers of periods = 20 - 5 = 15 years
r = Yield to maturity = 6.971%
Placing values in the formula
Price of the bond = $65 x ( 1 - ( 1 + 6.971% )^-15 / 6.971% + $1,000 / ( 1 + 6.971% )
Price of the bond = $957.02
the average rate of the 36 children in the group was 55 kgs children of average weight 53 cages left the group was the what new average weight of group in kg
Complete Question:
The average weight of the 36 children in the group was 55 kgs. 5 children of average weight 53 kgs left the group. What was the new average weight of the group in kg?
Answer:
The new average weight of the group = 1,715/31 = 55.32 kgs
Explanation:
Average weight of 36 children = 55 kgs
Total weight of 36 children = 1,980 (36 * 55) kgs
Average weight of 5 children = 53 kgs
Total weight of 5 children = 265 (53 * 5) kgs
When 5 children of 53 kgs average weight left the group,
the remaining 31 children (36 - 5) had total weight = 1,715 (1,980 - 265)
Therefore, the new average weight for 31 children at a total of 1,715, will be
= 1,715/31
= 55.32 kgs
Average rate is considered as a single rate that applies to property in multiple locations and is based on a weighted average of the dweller rates for each site.
Given Information:
Average weight=55 kgsNumber of children=36Average weight of 36 children = 55 kgs
Total weight of 36 children = 1,980 (36 * 55) kgs
Average weight of 5 children = 53 kgs
Total weight of 5 children = 265 (53 * 5) kgs
When 5 children of 53 kgs average weight left the group, the remaining 31 children (36 - 5) had total weight = 1,715 (1,980 - 265)
Therefore, the new average weight for 31 children at a total of 1,715, will be
= 1,715/31
= 55.32 kgs
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Data concerning Farm Corporation's single product appear below: Selling price per unit $ 320.00 Variable expense per unit $ 76.80 Fixed expense per month $ 170,240 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$224,000
Explanation:
Contribution margin = Selling price - Variable cost
= $320 - $76.8
= $243.2
Contribution margin ratio = Contribution margin / Sales
= $243.2 / $320
= $0.76 × 100
= 76%
Break even point = Fixed cost / Contribution margin ratio
= $170,240 / 76%
= $224,000
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: White divisionGrey division Sales (net)$270,000 $540,000 Salary expense37,800 64,800 Cost of goods sold135,000 202,500 The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Gross profit for the White and Grey Divisions is: WhiteGrey A.$97,200 $272,700 B.$232,200 $475,200 C.$135,000 $337,500 D.$72,200 $247,700 E.$97,200 $247,700
Answer:
White Division Gross Profit = $72,200
Grey Division Gross Profit = $247,700
Explanation:
White Division Grey division
Sales (net) $270,000 $540,000
Less: Cost of goods sold $135,000 $202,500
Gross Margin $135,000 $337,500
Less: Salary Expenses $37,800 $64,800
Rent $25,000 $25,000
Gross Profit $72,200 $247,700
The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each for rent
When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred to as a(n) _____.
Answer:
Joint venture
Explanation:
A joint venture is one where two or more parties agree to pool their resources together to accomplish a particular goal.
Each participant shares in the profit, loss, and cost associated with the business.
However the venture an entity that is independent of the participant's other business interest.
So when a standalone organization is created and owned by two or more parent companies together, it is called a joint venture
Kenneth Washington's weekly gross earnings for the week ending December 18 were $3,460, and his federal income tax withholding was $726.6. Assuming the social security rate is 6% and Medicare is 1.5% of all earnings, what is Washington's net pay? If required, round your answer to two decimal places.
Answer:
$2,473.9
Explanation:
The computation of net pay is shown below:-
Net pay = Gross pay - Federal income tax withholding - Social security tax - Medicare tax
= $3,460 - $726.6 - ($3,460 × 6%) - ($3,460 - 1.5%)
= $3,460 - $726.6 - $207.6 - $51.9
= $2,473.9
Therefore for computing the net pay we simply applied the above formula i.e the three above taxes are subtracted from the gross pay to arrive net pay
The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 12,000 ________ 16,000 Sales revenues $600,000 $ $800,000 Variable costs 240,000 $ ________ 322,240 Contribution margin $360,000 $ $477,760 Fixed costs 275,100 $ ________ 269,700 Operating profit $84,900 $ ________ $208,060 The flexible budget will report ________ for variable costs.
Answer:
The flexible budget will report $ 320,000 for variable costs.
Explanation:
Great Cabinets Company
Actual Results Flexible Budget Static Budget
Sales volume (in units) 12,000 ________ 16,000
Sales revenues $600,000 $ $ 800,000
Variable costs 240,000 $ ________ 322,240
Contribution margin $360,000 $ $477,760
Fixed costs 275,100 $ ________ 269,700
Operating profit $84,900 $ ________ $208,060
The flexible budget will report ________ $ 320,000 for variable costs.
For 16000 units the Flexible Budget would be
Sales Revenue ($600,000 /12000)16000 =$ 800,000
Variable Costs (240,000 /12000)16000 = $ 320,000
Contribution Margin $ 480,000
Fixed Costs 275,100 ( assuming fixed costs to be same
for 16000 units)
Operating Profit 204,900
At Bargain Electronics, it costs $29 per unit ($20 variable and $9 fixed) to make an MP3 player at full capacity that normally sells for $44. A foreign wholesaler offers to buy 3,020 units at $24 each. Bargain Electronics will incur special shipping costs of $2 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Reject Order Accept Order Net Income
Increase (Decrease)
Revenues $ $ $
Costs-Manufacturing
Shipping Net income $ $ $
The special order should be: __________
Answer:
The special order should be accepted by $21,140
Explanation:
Particulars Reject Accept Net change
Revenue 0 $72,480 $72,480
(3,020 × $24)
Cost manufacturing 0 $45,300 -$45,300
(3,020 × $15)
Shipping 0 $6,040 -$6,040
(3,020 × $2)
Net income 0 $21,140 $21,140
Under reject, all will be zero as rejecting the project has no change.
Therefore the net income of Bargain Electronics should be realizing by accepting the special orders by $21,140
Listed below are accounts that appear in financial statements.
Required: Identify the financial statement(s) in which each of the following three accounts would be found. Note: An account may appear in more than one financial statement.
Balance sheet Income statement statement of changes
in retained earning
Dividends
Deffered Revenue
Service Revenue
Answer:
Dividends - Statement of Changes in Retained Earning
Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.
Differed Revenue - Balance Sheet
Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.
Service Revenue - Income Statement
These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a _____________ variable, will cause the price level, a __________ variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a _____________ variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as___________________.
Answer:
nominal; nominal; real; the classical dichotomy.
Explanation:
Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a nominal variable, will cause the price level, a nominal variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a real variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as the classical dichotomy.
A nominal variable is the monetary value of a security such as bonds or stocks, without considering any change in price caused by inflation. It is also referred to as the par value or face value.
A real variable measures goods and services taking into consideration any change in price or that has been adjusted for inflation so as to allow comparison of goods with respect to another goods or services.
Hence, if the money supply is increased, it will cause an increase in the price of goods and services but will have no effect on the gross domestic product (GDP), which is known as the classical dichotomy.
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $5,800. On September 9, the customer unexpectedly pays the $5,800 balance. Record the cash collection on September 9.
Answer and Explanation:
According to the given situation, the Journal entry is shown below:-
On September 9
Account receivable Dr $5,800
To Allowance for doubtful debts $5,800
(Being written off amount is recorded)
Here we debited the account receivable as it increased the assets and credited the allowance as it decreased the assets
On September 9
Cash Dr, $5,800
To Accounts receivable $5,800
(Being cash collection is recorded)
Here we debited the cash as it increased the assets and we credited the accounts receivable as it decreased the assets
A break-even analysis includes operating expenses and total monthly debt payments,
plus
school costs
gross profit margin.
Onet profit margin
zero term margin.
Answer: Gross profit margin.
Explanation:
Break-Even Analysis enables a business to know how much cash it has under given situations by helping it know how much sales it needs in order to have a certain amount of cash.
It is calculated by the formula;
(Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales
Operating Expenses in this equation is net of Depreciation as depreciation is a non-cash expense.
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350. The minimum payment on the card is only $10 per month
a. If Simon makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card. Round to the nearest month.
b. If Simon makes monthly payment of $30, how many months will it be before he pays off the card. Round to the nearest month.
c. How much more in total payments will Simon make under the $10-a-month plan than under the $30-a-month plan? Make sure you use three decimal places for N.
Answer:
A.50 months
B.12.92 months
C.$112.38
Explanation:
a). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$10
r=(0.18/12)
Let plug in the formula
$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $10 = {1 - (1.015)-n} / 0.015
35 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.525
-n[log(1.015)] = log(0.475)
-n[0.0149] = -0.7444
n = -0.7444 / -0.0149
n= 50 months
b). Using this formula
PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]
Where,
PV of Annuity =$350
Monthly Payment =$30
r=(0.18/12)
Let plug in the formula
$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]
$350 / $30 = {1 - (1.015)-n} / 0.015
11.67 * 0.015 = 1 - (1.015)-n
(1.015)-n = 1 - 0.175
-n[log(1.015)] = log(0.825)
-n[0.0149] = -0.1924
n = -0.1924 / -0.0149 =
n=12.92 months
c). Calculation for the Total Amount Paid under $10-a-month plan
Using this formula
Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment
Where,
No.of Payments =50
Monthly Payment=10
Let plug in the formula
Total Amount Paid under $10-a-month plan= 50 * $10 = $500
Calculation for the Total Amount Paid under $30-a-month plan
Using this formula
Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment
Where,
No. of Payments =12.92
Monthly Payment=$30
Let plug in the formula
Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62
Hence,
Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan
= $500 - $387.62
= $112.38
In your opinion, can exchange rate volatility be managed? Why or why not? Explain your answer.
The correct answer to this open question is the following.
What I think about exchange rate volatility is that investors have to learn to manage this volatility because it is part of the stock market on a daily basis. Indeed, it is the nature of the game. Managing foreign exchange or FX, as it is also known, is of the utmost importance in this globalized world of investments. The price of goods and products that are exported such as iron, steel, or any other commodity has been very volatile in recent years, that is why investors and countries have to hire experts to manage their operations. One of the resources that can help investors regarding this issue is to mitigate the uncertainty with futures or currency forwards.
Algoma Co. borrows $250,000 cash on November 1, 2013, by signing a 120-day, 9% note with a face value of $250,000. 2. & 3. What is the amount of interest expense in 2013 and 2014 from this note? (Use 360 days a year. Do not round intermediate calculations.)
Answer:
The amount of interest expense in 2013 and 2014 are $3,750 and $3,625 respectively.
Explanation:
Interest expense would be in
2013;
= Principal × rate of interest × number of days ÷ ( total number of days in a year)
= $250,000 × 9% × (60 ÷ 360)
= $3,750
( 29 days in November + 31 days in December
In 2014,
= Principal × interest rates × number of days ÷ ( number of days in a year)
= $250,000 × 9% × ( 58 ÷ 360)
= $3,625
(30 days in January + 28 days in February)
One measure of ____ is the extent to which the work of the department affects the final output of the organization.
Answer:
Centrality
Explanation:
Remember, a less central organization means more freedom. However, when the work of the departments in an organization can adversely affects the final output of the organization it tells us how central the organization is.
This Implies that the organization is following a structured system in which flexibility is not possible, and as a result any issues at other departments might affect output.
Suppose the production of cotton causes substantial environmental damage because the pesticides used by cotton farmers often make their way into nearby rivers and streams, and are very harmful to fish and other wildlife. If cotton farmers do not have to pay for the environmental damage caused by the pesticides used to grow cotton, then the market equilibrium price will be ______ and the market equilibrium quantity will be
Answer: C. inefficiently low; inefficiently high
Explanation:
If the cotton farmers are not made to pay for the damage that their pesticides cost then they will maintain production at a relatively high level because their input costs will be relatively low. As a result of this high level of production, the price of the goods will be relatively low as well. The point at which both market equilibrium quantity and price are at in this scenario are considered inefficient because they are not taking into account, the true cost of production being the effects of the pesticides being used.
However, if they are made to pay for this negative externality that they are the cause of, it will increase their production cost and force them to reduce production to keep these costs low. As they reduce production, the market price will increase as supply is less.
Patricia is a business owner who is trying to determine the cost of goods sold for 2019. She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14. She sold 30 units in 2019 and uses FIFO for her inventory valuation. What was her cost of goods sold in 2019, assuming that there was no inventory at the beginning of the year?
Answer:
COGS= $310
Explanation:
Giving the following information:
She bought 20 units of inventory at $11, then 26 units at $9, and finally 18 units at $14.
She sold 30 units in 2019.
Under the FIFO (first-in, first-out) valuation method, the cost of goods sold is calculated using the cost of the firsts units incorporated into inventory.
COGS= 20*11 + 10*9
COGS= $310
Consider a mutual fund with $200 million in assets at the start of the year and 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. a. What is the fund's net asset value at the start and end of the year?
Answer:
At start = $20/share
At end = $21.384
Explanation:
DATA
ASSets at the start = $200m
Outstanding shares = 10m
Dividend income at the end = $2m
Gain in price = 8%
12b-1 fees = 1%
A.
Net assets at the start can be calculated by dividing assets at the start by outstanding shares
Net Assets value at start = Assets at start/Outstanding shares
Net Assets value at start = $200m/10m
Net Assets value at start = $20/share
Net Assets value at the end can be calculated by multiplying gain price with 12b-1 fees
Net assets value at the end = Gain Price x (1-12b-1 fees)
Net Assets value at the end = ($20x$1.08) x (1 - 0.01)
Net Assets value at the end = $21.6 x 0.99
Net Assets value at the end = $21.384
Even though most corporate bonds in the united states make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1000,20 years to maturity, and a coupon rate of 6.6 percent paid annually.
If the yield to maturity is 8.9 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
Price of bond = $786.86
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of bond would be worked out as follows:
Step 1
Calculate the PV of interest payments
Annual interest payment
= 6.6% × 1,000× 1/2= 33
PV of interest payment = A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 8.9%/2 = 4.45 %
n- 20× 2= 40
PV of interest payment= 33 × (1-(1.0445^(-40)/0.0445 = 611.611
Step 2
PV of redemption Value
PV = RV × (1+r)^(-n)
PV = 1,000 × (1.0445)^(-40) = 175.25
Step 3
Price of bond
Price of bond= 611.611 + 175.25 = 786.862
Price of bond = $786.86
whipple corp. just issued 310,000 bonds with a coupon rate of 6.20 percent paid semiannually that mature in 15 years. The bonds have a YTM of 6.64 percent and have a par valueof 2000. how money was raised from the sale of the bonds?
Answer:
$594,338,200 was raised from the sale of the bonds.
Explanation:
The Price of the bond (PV) can be determined using a financial calculator as follows :
Pmt = ($2,000 × 6.20 %) / 2 = $62
P/yr = 2
n = 15 × 2 = 30
YTM = 6.64 %
FV = $2,000
PV = ?
Therefore, PV = $1,917.22
Money raised = 310,000 bonds × $1,917.22
= $594,338,200
Oldhat Financial starts its first day of operations with $11 million in capital.A total of $120 million in checkable deposits are received. The bank makesa $30 million commercial loan and another $40 million in mortgages with thefollowing terms: 200 standard, 30- year, fixed-rate mortgages with a nominalannual rate of 5.25%, each for $200,000. Assume that required reserves are 8.
a. What does the bank balance sheet look like?
b. How well capitalized is the bank?
c. Calculate the risk weighted assets and risk weighted capital ratio after Oldhat's first day.
Answer:
a.
Assets Side
Required Reserves $10 million
Excess Reserves $51 million
Loans $70 million
Total $131 million
Liabilities Side
Checkable Deposits $120 million
Bank Capital $11 million
Total $131 million
b. Bank capitalization can be measured with bank Leverage Ratio.
= Capital/Assets
= 11/131
= 8.40%
Bank is considered well capitalized if ratio is above 5% so Oldhat Financial is well capitalized.
c. Risk Weighted Assets = $50 million
Risk weighted capital ratio = 22%
Commercial loans are 100% risk weighted = $ 30 million
Residential mortgages are 50% risk weighted = $ 20 millions
Total = $50 million.
Risk weighted Capital Ratio = Bank capital / Total risk weighted assets
= 11/50
= 22%
Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.60 per pound $ 19.24 Direct labor 0.45 hours $ 8.00 per hour $ 3.60 During the most recent month, the following activity was recorded: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material:
Standard= 7.40 pounds $ 2.60 per pound
Actual= 12,100 pounds of material were purchased for $2.50 per pound.
Direct labor:
Standard= 0.45 hours $ 8.00 per hour
Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750
Units produced= 1,500
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.6 - 2.5)*12,100
Direct material price variance= $1,210 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
standard quantity= 1,500*7.4= 11,100
Direct material quantity variance= (11,100 - 12,100)*2.6
Direct material quantity variance= $2,600 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 1,500*0.45= 675
Direct labor time (efficiency) variance= (675 - 575)*8
Direct labor time (efficiency) variance= $800 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 5,750/575= $10
Direct labor rate variance= (8 - 10)*575
Direct labor rate variance= $1,150 unfavorable
A "tariff" on imported products is an example of a trade barrier that is always preferred to the free trade, because it generates government revenues in addition to restricting the amounts of imports.
A. True
B. False
Answer:
The answer is true
Explanation:
One of the most common trade barriers is a tariff. Tariff is a tax imposed by the government on imported goods and services. Imposing tariffs on imported goods and services raise their prices.
Imposing tariff on imported goods can either be done to raise government revenue or to protect indigenous companies.
Suppose that the quantity of apples sold increases by 30 percent after the price of pears increases by 15 percent. What is the coefficient of cross elasticity of demand
Exercise F The luggage department of Sampson Company has revenues of $1,000,000; variable expenses of $250,000; direct fixed costs of $500,000; and allocated, indirect fixed costs of $300,000 in an average year. If the company eliminates this department, what would be the effect on net income
Answer:
Decrease by $250,000
Explanation:
Calculation for what would be the effect on net income.
We would be using Differential Analysis method to find the effect on the net income
Differential Analysis
Continue with Luggage Department; Eliminate Luggage Department; Effect on Income
Sales
1,000,000 0 -1,000,000
Variable cost
-250,000 0 250,000
Direct fixed costs
-500,000 0 500,000
Indirect fixed costs
-300,000 -300,000 0
Net Income
-$50,000 -$300,000 -$250,000
Therefore in a situation where the luggage department is eliminated, the income would decrease by $250,000
A customer is long 400 shares of fully paid XYZ stock, valued at $150 per share. The customer sells "short against the box" another 400 shares of XYZ. XYZ is listed on the New York Stock Exchange. The minimum maintenance margin requirement is:
Answer:
$3,000.
Explanation:
Given that, the margin in an arbitrage account is 5% minimum maintenance on the long side under FINRA rules.
Also, in this case, there is no Regulation T requirement, since the customer has no risk, which means hs net position = "0."
Therefore, given that, the market value of the securities is $150 * 400 = $60,000
Then, the minimum margin which is 5% = $3,000.
Additionally, the customer can borrow the remaining $57,000.
Hence, the right answer is $3,000
Jack and Jill borrow $21,000 at 7.2% amoritzed over 6 years to drill a well and renovate their kitchen and bathrooms. Assuming that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 3 years
Answer:
I prepared an amortization schedule on an excel spreadsheet:
monthly payment = $360.05
after the 36th payment is made, the loan's principal balance = $11,626.23
A firm has found that it provides a 90 percent order fill rate (orders shipped complete), 90 percent on-time delivery, 90 percent of its orders arrive at customers' destinations in perfect condition, and 90 percent of the time all documentation is correct. These are all of the elements of a perfect order for this company's customers. What is the best estimate of its perfect order performance?
Answer:
66%
Explanation:
The Best estimate of the order's perfect performance is the probability that all four factors contribute as desired.
The probability of this happening is
= (0.9) × 4
= 0.6561
or
= 66%
Simply we multiplied the four factors with the given percentage so that the best estimate of the perfect order performance could arrive
"A dealer buys 10,000 shares of ABC common at $15 for its inventory. One week later the stock is quoted at $18 - $19, and a customer buys 100 shares from the dealer at a net price of $20. Under the FINRA 5% Policy, a fair and reasonable mark-up is based upon which price?"
Answer: c. $19
Explanation:
Under the FINRA 5% Policy, a fair and reasonable mark-up or commission is based upon the current market price of the stock not how much the dealer bought it for or rather their cost. As such, when the customer buys, which was the case in this scenario, the mark-up is charged on the inside ask price which in this case is $19.
Were the customer to be selling, any mark-downs will be charged on the inside bid price which in this case is $18.
In the short run, what would indicate that a perfectly competitive firm is producing an output for which it is receiving a normal profit?
Answer: Price = Average Cost
Explanation:
I'm unsure if this question has options but this is the most probable reasons a firm in a Perfectly Competitive market would be receiving a normal profit in the Short run.
Normal Profit means that the company is making an Economic Profit of $0. For this to happen, the firm must need to be making the same.amount as it is spending on the goods that it is producing.
The amount it is spending is the Average Cost. When Price equals this Average Cost, the company is at Break-Even Point and so is making a $0 Economic profit which means it is only making Normal Profit.
For a company to make Economic Profit, the Price needs to be equal to the Marginal Cost.