Answer:1. The higher before tax real gain is for Steve for $2000 i.e (32,000- 30,000) while Stephanie makes $1800(6% of $30,000)
2. The higher after tax real gain is for Stephanie losing 35% of her income
which reduce her income to $1170 while Steve loss 50% of his income which reduce to $1000.
Explanation
The inflation rate is not considered in the calculation because it's constant for both parties.
Answer: $8,391.90
Explanation:
So the company borrowed $40,000 from a bank.
They are to pay 7% interest on the note per year for 6 years.
We are to find the annual payments.
7% represents a constant payment schedule per year so we can use an Annuity formula.
Seeing as the Annuity factor has been calculated for us already we don't need to formula though.
The present value of an annuity factor for 6 years at 7% is 4.7665.
Calculating the present value of the annual payment can be done as follows,
= Amount / PVIFA (Present Value Interest Factor for an Annuity)
= 40,000/4.7665
= 8391.90181475
= $8,391.90
The annual payments equal $8,391.90.
Answer:
Pharaoh will reduce its cash balance by $1,130
None of the answer options was correct, maybe something was missing in the question like notes collected or other NSF checks.
Explanation:
Pharaoh Company's bank reconciliation:
balance per bank account $23,700
- outstanding checks ($4,800)
+ deposits in transit $7,750
<u>- NSF checks ($500) </u>
total $26,150
<u>- cash balance per books ($27,280)</u>
difference ($1,130)
In order to reconcile the bank account, we do not consider any bank service fees because they are already included in the bank balance. What we must consider are the NSF checks that we deposited and thought were good checks, but instead they bounced.
The answer is: B. sacrifice profits for less risk.
Interest rates influence the amount of money that the borrower had to give back to the bank and Higher interest rate would give higher profit for the bank.
When bank people give low interest rates for people with good credit, the number of revenue that bank would make from giving the loan would decrease. But people with good credit has high likelihood of returning the money they borrow, which mean that there is less risk for the bank.
According to the midpoint method, the price elasticity of demand for tomatoes between point X and point Y is approximately (1.8 or 0.56 or 0.09 or 0.05) , which suggests that the demand for tomatoes is (elastic or
