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1 year ago

Justin discounts a 115-day note for $26,000 at 8.5%. the effective rate of interest to the nearest tenth percent is:

Business

2 answers:

Sergio [31]1 year ago

5 0

Answer:

8.74%

Explanation:

Interest = Principal x Interest Rate = $26,000 x .085 x 115/360 = $705.97

EAR = Interest/[(Principal - Interest) x (115/360)]

= $705.97/[($26,000 - $705.97) × (115/360)] = $705.97/ $8,080.04 = 0.0874, or 8.74%

lesya692 [45]1 year ago

4 0

8.7%

$26,000 x .085 x 115/360 = $705.97
$26,000 - $705.97 = $25,294.03
$25,294.03 x 115/360 = $8080.04
$705.97/$8080.04 = 8.7%

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Johanna Reid, a campaign manager at a child rights organization, recently started working on an illiteracy project. During the p

gayaneshka [121]

Answer:

leading

Explanation:

Leading is one of the critical function of management that determine direction and motivation to the employee for achieve organizational goal. The leader is important in this function to keep employee engaging, motivated and participative in achieve organizational objective. Leaders should lead by example to influence others.

In the given case, Johannna Reid as a leader is trying to motivate and showing direction to achieve targets of project.

5 0

1 year ago

Coke and Pepsi battle it out

Tanzania [10]

Answer:1. Advertising

2. D. They have more information about the product and the increased promotions give the consumers deals they otherwise would not have experienced.

Explanation:

The war between Pepsi and Coca- Cola is an advertisement war in which each is trying to gain the consumers patronage by proving the superiority of their product over others. It has nothing to do with research, price nor efficiency.

The advertisement provides more information on the product to the consumers and promotion offer like free gift which they hitherto would not have enjoyed.

Marketing or advertising cost are not passed to consumers and the advertisement been interesting adds little or no value to the consumers.

3 0

2 years ago

Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are 1 %1%

Ludmilka [50]

Answer:

present value of bond = $1042.96

Explanation:

given data

spot rates for six months = 1%

spot rates for one and = 1.1%

spot rates for one and half years = 1.3%

price = $1000

coupon bond = 4.25%

time = 6 month

solution

we get here first price on bond paid that is

coupon paid = $1000 × 4.25 × 0.5 = $21.25

we get here present value of 6 month and 1 year and 1 and half year

present value = $\frac{coupon\ payment }{(1+\frac{spot \ rate}{2})^t}$ ..............1

present value of 6 month = $\frac{21.25}{(1+\frac{0.1}{2})^1}$ = 20.23

present value of 1 year = $\frac{21.25}{(1+\frac{0.011}{2})^2}$ = 21.01

present value of 1 year and half year = $\frac{21.25}{(1+\frac{0.013}{2})^2}$ = 20.97

and

now we get present value of par value in 1 and half year

present value of par value in 1 and half year = $\frac{par\ value}{(1+\frac{spot rate}{2})^3}$

present value of par value in 1 and half year = $\frac{1000}{(1+\frac{0.013}{2})^3}$

present value of par value in 1 and half year = 980.75

present value of bond will be as

present value of bond = 20.23 + 21.01 + 20.97 + 980.75

present value of bond = $1042.96

5 0

1 year ago

The following selected information was extracted from the 20x1 accounting records of Lone Oak Products:

joja [24]

Answer:

1. $513,000

2. $913,200

3. $926,400

4. $154,420

5.11340 Units

Explanation:

1. Calculation for Lone OakÃ¢â‚¬â„¢s manufacturing overhead for the year.

Manufacturing overhead

Indirect labor 109,000

Building depreciation (80000*75%) 60,000

Other factory cost 344,000

Manufacturing overhead $513,000

2. Calculation for Lone OakÃ¢â‚¬â„¢s cost of goods manufactured.

First step is to calculate the Direct material used

Direct material used = 15,800+175000-18200

Direct material used= 172,600

Second step is to calculate the Total manufacturing cost

Total manufacturing cost = 172,600+254,000+513,000

Total manufacturing cost= 939,600

Now let calculate the Cost of goods manufactured

Cost of goods manufactured = 35,700+939,600-62100

Cost of goods manufactured = $913,200

3. Compution for the companyÃ¢â‚¬â„¢s cost of goods sold.

Cost of goods sold = 111100+913,200-97900

Cost of goods sold = $926,400

4. Calculation to Determine net income for 20x1, assuming a 30% income tax rate.

Net income :

Sales 1495000

Cost of goods sold -926,400

Gross profit 568,609

Selling and administrative expense (133000+20000+195000) 348000

Profit 220,600

Tax 30% 66,180

Net income $154,420

(220,600-66,180)

(25%*80,000=20,000)

5. Calculation to Determine the number of completed units manufactured during theyear.

No of unit completed = 1190+(1,495,000/$130 per unit)-1350

No of unit completed =1190+11500-1350

No of unit completed = 11340 Units

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1 year ago

A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise to a customer on credit terms of 3/10

Reika [66]

Answer:

Explanation:

The journal entry on April 13 for receipt of payment from customer is as follows:

Date Account title and explanation Ref Debit Credit

13-April Cash ($5000 - $150) $4,850

Sales discount ($5000* 3%) $150

Accounts receivable

$5000

(To record the receipt of payment from customer net of discount

7 0

1 year ago