Answer:
Regency Bank
A = $98577.46
king Bank
A = $81832.68
Explanation:
Given Data:
principle amount =$ 5000
rate of interest = 15%
n =12 {compounded months}
t = 20 year
for Regency Bank
investment amount obtained as
![A =P\times [1 + \frac{r}{n}]^{nt}](https://tex.z-dn.net/?f=A%20%3DP%5Ctimes%20%5B1%20%2B%20%5Cfrac%7Br%7D%7Bn%7D%5D%5E%7Bnt%7D)
![A = 5000 [1 + \frac{0.15}{12}]^{12\times 20}](https://tex.z-dn.net/?f=A%20%3D%205000%20%5B1%20%2B%20%5Cfrac%7B0.15%7D%7B12%7D%5D%5E%7B12%5Ctimes%2020%7D)
A = $98577.46
for King Bank
Investment amount obtained as
Here n = 1
![A = 5000 [1 + \frac{0.15}{1}]^{1\times 20}](https://tex.z-dn.net/?f=A%20%3D%205000%20%5B1%20%2B%20%5Cfrac%7B0.15%7D%7B1%7D%5D%5E%7B1%5Ctimes%2020%7D)
A = $81832.68
Answer:
The price of the stock six years from now will be $56.94
Explanation:
To calculate the price of a stock that pays a dividend which grows at a constant rate forever, we use the constant growth model of DDM. The current price of stock using the constant growth model is calculated as follows,
P0 = D1 / r - g
As, we don't know the D1, that is dividend expected for the next year, we will calculate it first,
45 = D1 / (0.12 - 0.04)
45 * (0.12-0.04) = D1
45 * (0.08) = D1
3.6 = D1
We use the D1 to calculate the price today. Thus, we will use D7 to calculate the price six years from now.
D7 = D1 * (1+g)^6
P6 = 3.6 * (1+0.04)^6 / (0.12 - 0.04)
P6 = $56.939 rounded off to $56.94
Answer:
(a) Import Quota
Explanation:
Option B is wrong because import duty is the tax, which is collected from imported products. It cannot restrict any items or protect the coconut-based products industry.
Option C is incorrect because import tariff allows charging imported products at higher prices to restrict import goods. In that case, the company does not increase the imported goods price.
Option D is incorrect because the company does not get a subsidy from the government.
Therefore, option A is the answer because import quota restricts companies from importing goods and services on a limited basis to protect the local manufacturers.
Answer: Interest revenue for $2400
Explanation:
From the question, we are informed that Bay Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2014 for $60,000. The journal entry to record this investment includes a debit for Interest revenue for $2400.
This was calculated in the following way:
= $60,000 × 8% × 1/2
= $60,000 × 0.08 × 0.5
= $2400 interest revenue
What Octavia should do is send a quick reply explaining that she needs more time to consider the question. Say the customer is asking asking something really complicated, the receiver will might need more time to answer than an easier question.
