Answer:
$148,665
Explanation:
This could be calculated by finding the amount that the buyer will which includes 14% + 1% = 15%
So this means that the payment made is:
Payment made = $174,900 X 15% = $26,235
The remainder amount will be borrowed from the bank and is equal to the difference of 15% and the total amount.
Amount that would be borrowed = $174,900 - $26,235 = $148,665
What is the major difference in focus between a location decision in the service sector vs. The manufacturing​ sector?
Answer:
D) The focus in service is on revenue maximization, while the focus in manufacturing is on cost minimization.
Explanation:
You can set up a manufacturing location in different places, mostly depending on the costs associated with the supply management (both upstream and downstream).
While location is extremely important for a service provider and its capacity to generate revenue, e.g. a hotel or a restaurant cannot be located in the middle of nowhere.
The BCG has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. "Cash cows" are SBUs that are classified as having:___________
A. high market growth rates and high relative market shares.
B. low market growth rates but high relative market shares.
C. low market growth rates and low relative market shares.
D. high market growth rates but low relative market shares.
E. medium market growth rates and medium relative market shares.
Answer:
low market growth, high relative market share
Explanation:
In 1970, Bruce D. Henderson created a certain growth-share matrix for the Boston Consulting group in which the cash cow was stated to be a company that operates in a slow-growing industry but with large market share.
Companies are known to love cash cows, reason being that they require minimal amount of money to maintain while the business on its own gives back much more money than one puts into it
What would be a sufficient user account to provide temporary access to the network for a user such as a vendor representative or a temporary employee?
Answer:
The correct answer is: Guest.
Explanation:
The guest user is a slightly special user. It has the same privileges as a standard user, but it is anonymous and without a password. That is, the purpose of the guest account is to allow any user without an account on the computer to log in and use the equipment.
From a security point of view, this is not always recommended. Therefore, by default, the guest account is disabled. So, if we want it to be available to login, we must activate it.
The general manager of a yacht club is conducting a SWOT analysis. One of the items he has listed is that all of his department managers have either just completed or are in the process of completing the Manager in Development program from the Club Managers Association of America. How would this item be classified in a SWOT analysis
Answer:
Completion of the Manager in Development program from the Club Managers Association of America is classified as a Strength in a SWOT analysis.
Explanation:
When a Company is Conducting a Swot Analysis, it evaluates it Strengths, Weakness,Opportunities and Threats hence the Acronym SWOT.
Strengths : Is Something the entity is good at and giving it an important capability
Weakness: Absence of certain strength that the entity is supposed to inherit is viewed as weakness
Opportunities : Feature of the External Environment which creates positive potential for the entity in achieving its objectives
Threats : Changes to the external environment which presents a threat to the entity in achieving its objectives
By Completion of the Manager in Development program from the Club Managers Association of America , the Yatch Club will be competent in management aspects and that will be something the Yatch Club will be good at.Hence classified as a Strength
Values are Group of answer choices a. The deeply held convictions that influence your thinking when you are faced with choices b. The tangible forces that guide and influence your decisions throughout your life. c. Self-motivators that indicate what you do not consider most important in your life. d. Reflected in what you actually do not do with your time and your life.
Answer:
a. Deeply held convictions that influence your thinking when you are faced with choices
Explanation:
A conviction refers to a firmly held belief of an individual.
An individual forms his values from his family, friends and people around which gradually shape perspective.
Values determine how an individual behaves socially, what constitutes morally right and what is not. They govern the ethical behavior of an individual.
Values are personal in nature in the sense those ain't generally acceptable principles. Those differ from individual to individual. They determine the course of action of an individual when faced with challenges and alternatives.
Consideration in a bilateral contract always involves both:______.A. A legal benefit and a legal detriment.B. A legal waiver and a legal renunciation.C. A legal detriment and a legal impediment.D. A legal benefit and a legal waiver.
Answer:
The correcta answer is A legal benefit and a legal detriment.
Explanation:
The contract can be understood as the legal institutionalization of the economic phenomena of the production, circulation, distribution and commercialization of goods and services. In this sense, the legal structure of the contract demarcates, regulates and directs the instrument par excellence for the reproduction of economic relations, in a socio-economic system based on the exchange. In that context, the bilateral contract, legally defined as the one in which the contracting parties mutually oblige, is presented as the main channel of patrimonial attributions.
The contract, mainly the bilatera, thus fulfills indispensable socio-economic functions: in a sense that we could qualify as particular, the bilateral contract allows the subjects to provide goods and services; In another sense, more generally, the bilateral contract constitutes the legal mechanism that channels economic relations, which, as a whole, structure, sustain and reproduce the socioeconomic system.
The bilateral contract, to justify the attributions that are made through it, must respond to a basic criterion of commutability, of exchange, of balance between the benefits that intersect to support the contractual structure itself. Even beyond the fact that the contract meets obligations for both parties, that criterion constitutes the central element of a correct definition of the bilateral contract. The bilaterality of the obligation is not enough for the reciprocity of the contract. Rather, it is precisely for this reason that each party is bound so that the other is also obligated. There must therefore be a commutative contract, whereby each participant considers the benefit of the other as equivalent to the benefit itself. What happens, for example, in the purchase: the buyer is obliged to pay the price, so the seller promises the delivery of the thing.
Tamarisk, Inc. sells merchandise on account for $7400 to Cheyenne Corp. with credit terms of 2/15, n/30. Cheyenne Corp. returns $1700 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check
Answer: $5,586
Explanation:
Tamarisk, Inc. sells merchandise on account for $7,400 to Cheyenne Corp. with credit terms of 2/15, n/30
Returned goods worth $1700 of merchandise that was damaged.
Total purchase. $7,400
Less: Return. ($1,700)
Net purchases. $5,700
Made pmt within the discount period of 15 days at 2% discount
Purchases of $5,700 x 2%. = $114
Total amount paid for the purchase is $5,700 - $114 = $5,586
Answer:
Bank $5586
Explanation:
In the books of Tamarisk Inc
Sr. No Particulars Debit Credit
1 Accounts Receivable $ 7400
Sales $ 7400
2 Sales $ 7400
Sales Returns $ 1700
Sales Discount $ 144
Bank $5586
WORKING:
The amount of Check
Credit Sales Less Sales Returns= $ 7400- $ 1700= $ 5700
Sales Discount =2% of Credit Sales= 2% of $ 5700= $ 114
Bank Amount = Credit Sales less Sales Discount= $ 5700- $ 114= $ 5586
Jill Scott is an accountant with Cameron and Associates, a law firm in downtown Seattle. The firm maintains a checking account with Southern Rock Bank for its operating expenses. On the 10th of every month, Jill gets an inventory report from the office manager listing the office supplies that are needed. Jill places the appropriate orders with Office Depot and writes them a check against the office's checking account. Who is the drawee in this banking transaction?A) Jill Scott.B) Office Depot.C) Cameron and Associates.D) Southern Rock Bank.
Answer:
The correct option is D,Southern Rock Bank
Explanation:
A drawer is the person who has issued a check and from whose account funds are to be withdrawn.The drawer in this scenario is Cameron and Associates
A drawee is the bank that manages the account from which funds are to be withdrawn.The Southern Rock Bank is the drawee here.
The payee is the beneficiary of the issued check that has the right to present for cash or pays it into its checking account.The payee in the scenario is Office depot
Hence,this relationship can be said to be a tripartite one involving the drawer,the drawee and the payee
The methods that it uses to regulate business practices, defines how companies conduct business transactions, specifies the rights and obligations of those engaged in business transactions, and spells out the methods of legal redress to those who believed they have been wrong are aspects of a country's _____.
Answer:
legal system
Explanation:
There are five basic legal systems used in different countries around the world: civil law, common law, customary law, religious law, and mixed legal systems.
Generally business operations are included under common law (US and UK + former colonies) or civil law (based on Roman law used in most of Europe and Latin America), at least in western countries. This includes both North and South America, western European countries, and Australia + NZ.
Personally I don't know about the rest of the non western countries.
The central idea for Janelle's speech on the importance of using sunscreen does not break down into logical divisions. Rather than forget this topic and try to find one that divides more logically, what other suggested strategy should Janelle apply
Answer:
find new supporting material on the topic and start again
Explanation:
Based on the information provided within the question it can be said that the suggested strategy that Janelle should apply would be to find new supporting material on the topic and start again this will allow Janelle to have more information that will help her divide her thoughts more efficiently and logically within her speech.
Answer:
B) establish reasons why her central idea is true
Explanation:
Since Janelle's speech has several weak spots, she must perform a little more research in order to establish a stronger central idea. Or maybe she already has done enough research and she possesses all the necessary information, but her speech is lacking order.
Whichever the case, she must come up with arguments that support her central idea, i.e. her speech is lacking focus.
Establishing a hierarchy to let all management and employees know what is going on in a company would be an example of what element of internal control?
Answer:
Information and communication
Explanation:
Internal control refers to the management procedures in place used to accomplish the objectives such as promote efficient and effective operations, ensure the reliability and integrity of financial information, safeguard the organisation's assets, etc. A good system of internal control is essential to the availability of information and a clear and obvious strategy for communicating obligations and expectations.
A local movie theater had small cups of popcorn sitting on the counter where patrons purchased tickets. The cups were called "complimentary cups," and their purpose was to promote the sale of popcorn. This procedure is most similar to:_________.
a. self-reinforcement.
b. generalized reinforcement.
c. intermittent reinforcement.
d. reinforcer sampling.
Answer: Reinforcer sampling.
Explanation:
Reinforcer sampling is the method of applying a reinforcer to an individual(s) that ensures the individual(s) acts in a particular desired way. The movie theater described in the question are making use of reinforcer sampling when placing little pop corns cups at the entrance of the theater, this helps as a trigger that propels the movie watchers to want to buy pop corns.
Ryan, Jerry, and Mark belong to Sigma Phi Upsilon fraternity. They pride themselves on being a group of solid students with leadership abilities. As a result, they often seem to hijack Fraternity Council Leadership meetings. Clearly, they feel they know how all the fraternities on campus should operate. This very high level of cohesiveness in a group
A. enhances critical thinking.
B. causes groupthink.
C. results in the best decisions.
D. increases cooperation of the group.
E. heightens individual perceptions.
Answer:
The answer to this question is option B. causes groupthink
Explanation:
Based on the scenario portrayed above, the high level of cohesiveness shown by Ryan, Jerry and Mark causes groupthink.
A Groupthink is a psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.
Hence the answer is option B.
Answer:
B. causes groupthink.
Explanation:
There are so many main causes of groupthink. These include :
a ) group cohesiveness
b) overall group isolation
c) group leadership and
d) decision-making stress.
High levels of cohesiveness will reduce the amount of verbal dissension within a very close group, due to interpersonal pressure to conform.
Trift company made total purchases of $ 310 comma 000 in the most current year. It paid freight in of $ 5 comma 500 on its purchases. Freight out, the cost to deliver the merchandise when it was sold to Trift's customers, totaled $ 7 comma 800. Of the total purchases Trift made during the period, it returned $ 28 comma 000 of the merchandise. Trift took advantage of $ 2 comma 700 of purchase discounts offered by its vendors. What was Trift's cost of inventory?
Answer: $284,800
Explanation:
Inventory cost are cost associated with the procurement, storage and management of goods. It includes the actual price of the good, the ordering cost or cost involved in getting the inventory to the warehouse or storage area and other fees used to keep inventory intact.
Given the following details;
Total purchase cost = $310,000
Freight-in = $5,500
Freight-out( cost of delivery when sold to Trift's customers) - $7,800
Freight-out cost isn't part of the inventory cost. Only Freight-in cost (cost to get inventory to Trift) is calculated as part of the inventory cost
Cost of Returned merchandise = $28,000
Purchase discount = $2,700
Therefore,
Total cost of inventory = total purchase cost + Freight-in cost - (cost of returned merchandise + purchase discount)
Total inventory cost = $310,000 + $5,500 - ($28,000+$2,700)
Total inventory cost = $310,000 + $5,500 - $30,700
Total inventory cost = $284,800
Final answer:
To calculate the cost of inventory for Trift company, subtract returns, add freight in, and subtract purchase discounts from the total purchases. The cost of inventory is $284,800.
Explanation:
The cost of inventory for Trift company can be calculated by adjusting the total purchases for the additional costs and deductions related to the inventory. We start with the total purchases and then subtract returns, add freight in, and subtract purchase discounts to find the cost. The formula would be: Cost of Inventory = Total Purchases - Returns + Freight In - Purchase Discounts.
The calculation is as follows:
Total Purchases: $310,000
Returns: $28,000
Freight In: $5,500
Purchase Discounts: $2,700
Applying these numbers to the formula:
Cost of Inventory = $310,000 - $28,000 + $5,500 - $2,700
Cost of Inventory = $284,800
Therefore, the cost of inventory for Trift company for the most current year is $284,800.
The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding all legal matters; and distributing the proceeds derived from receipts falls to the:_______.
Answer:
producer
Explanation:
The producer of a movie, theater play, sitcom, etc., is the person in charge of securing everything that is needed in order for the movie, play, etc., to be properly carried out. That means he/she is responsible for gathering the necessary funds and paying salaries and all other expenses. The producer is also responsible for dividing the money generated by the movie, play, etc., and distributing it to the investors.
First Bank has some question as to the tax-free nature of $9 million of its municipal bond portfolio. This amount is excluded from First Bank’s taxable income of $65 million. Management has determined that there is a 65% chance that the tax-free status of this interest can’t withstand scrutiny of taxing authorities.Assuming a 40% tax rate, what amount of income tax expense should the bank report? (Enter your answer in million. Round your answer to 1 decimal place.)
Answer:
Assuming a 40% tax rate, the amount of income tax expense should the bank report will be 40% x ($65 million + $5.85 million) = $28.34 million
Explanation:
First Bank has some question as to the tax-free nature of $9 million of its municipal bond portfolio. This amount is excluded from First Bank’s taxable income of $65 million.
Management has determined that there is a 65% chance that the tax-free status of this interest can’t withstand scrutiny of taxing authorities.
Therefore the amount of the $9 million to be included in the taxable income will be 65% x $9 million = $5,850,000
Assuming a 40% tax rate, the amount of income tax expense should the bank report will be 40% x ($65 million + $5.85 million) = $28.34 million
First Bank should report an income tax expense of $28.3 million, considering the potential taxation of part of their municipal bond portfolio after the expected value calculation and the application of the 40% tax rate.
To calculate the income tax expense that First Bank should report, we need to consider the potential loss of their tax-free status on a portion of their municipal bond portfolio and apply the given tax rate.
First, we ascertain the amount that might be subject to tax, which is $9 million. Given there is a 65% probability that this amount will not maintain its tax-free status, we engage in an expected value calculation:
Expected taxable amount = $9 million imes 65% = $5.85 million.Now, apply the 40% tax rate to the expected taxable amount:
Tax on expected amount = $5.85 million imes 40% = $2.34 million.However, because the company should already be planning to pay tax on its taxable income, we must add the tax from the expected taxable amount of municipal bonds to the tax on the original taxable income:
Tax on original taxable income = $65 million imes 40% = $26 million.Therefore, the total income tax expense should be the sum of the tax on the original taxable income and the tax on the expected taxable amount:
Total income tax expense = $26 million (original) + $2.34 million (additional) = $28.34 million.After rounding to one decimal place, the bank should report an income tax expense: $28.3 million
The Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset. On June 30, an inventory of the laundry supplies indicated only $2,000 on hand. The adjusting entry that should be made by the company on June 30 is ____________.
Answer:
The adjusting entry that should be made by the company on June 30 is
Inventories $ 6,500 (debit)
PPE Asset $ 6,500 (credit)
Explanation:
Error Made on June 30 was as follows : Village Laundry Company purchased $6,500 worth of laundry supplies on June 2 and recorded the purchase as an asset.
PPE Asset $6,500 (debit)
Cash $6,500 (credit)
On 30 June the amount of inventory reported is understated by $6500.While the amount of Assets recorded is overstated by $6500
Therefore the adjasting entry for this situation is as follows
Inventories $ 6,500 (debit)
PPE Asset $ 6,500 (credit)
Thus increasing the Inventory balance and decreasing the PPE Asset Balance.
Answer:
Debit supplies expense $4,500
Credit supplies account $4,500
Explanation:
When the laundry supplies was purchased, the entries posted is debit to supplies account, credit to cash/accounts payable depending on whether cash was paid or the supplies were made on account.
As the supplies are used, the amount used is accounted for by debiting supplies expense and crediting supplies account.
As such, the balance in the supplies account is the net of the initial debit at purchase and the credit on use.
Hence adjusting amount
= $6,500 - $2,000
= $4,500
Type the correct answer in the box. Spell all words correctly. Which drawback of being an entrepreneur can disrupt your personal life? The that entrepreneurs suffer because of problems in business can disrupt their personal life.
Answer:
an unpredictable and long work schedule
Explanation:
Being an entrepreneur requires a lot of effort, passion and time. The most scarce resource of all is time, since not even the richest person in the world can add more hours to a day. An entrepreneur must work a lot in order to make his/her company succeed and a lot of work takes a lot of time. An entrepreneur's work schedule is both unpredictable and extremely long. Such a combination is sometimes terrible for your personal life. That is why many entrepreneurs actually work with their partners, e.g. small businesses are generally run by families. If work will absorb so much of your time, you might share your work with your loved ones.
Answer:
PLATO users!!
The Answer is Stress
Explanation:
I got it right on the test, id add a screenshot but I don't know how to take a screenshot on my new laptop.
External sources of generating product ideas include ________. Select one: a. customers b. marketing executives c. customer service representatives d. employees from R
External sources of generating product ideas include customers.
Option: A
Explanation:
Idea creation is critical as it helps you to broaden your repertoire of thoughts outside your current belief circle. We agree that you first have to extend thought to include more queries, more factors and more ideas before you start the cycle of refinement. The basis of innovative product concepts involve staff of businesses, consumers, rivals, external inventors, acquisitions and representatives of the chain. Both solicited and spontaneous thoughts can come from the basis, and some can even happen by accident.
External sources for generating product ideas include option a. customers. They provide vital feedback and insights through various means like surveys and social media, which help companies identify market needs.
External sources of generating product ideas include customers.
This is because they are the end-users who provide valuable insights and feedback on what products are needed, what improvements can be made, and what gaps there are in the market.
Companies often gather this information through surveys, customer interviews, suggestion boxes, social media interactions, and by monitoring trends in customer behavior and preferences.
1. For any country after it allows free trade,
a. domestic quantity demanded is equal to domestic quantity supplied at the world price.
b. domestic quantity demanded is greater than domestic quantity supplied at the world price.
c. both producers and consumers in that country gain when domestic products are exported, but both groups lose when foreign products are imported.
d. the domestic price is equal to the world price.
Answer:
b
Explanation:
Geraldine Parker, the owner of Gi Grs Dance Studio, Inc., started the business by investing $10,000 cash and donating a building worth $20,000. Identfy the general jourmal entry below that Gi Gřs will make to record the transaction. A. Cash 30. Common Stock 0,000 B. Common Stock 30 Cash 10,000 Building 20,000 C. Cash 10,000 Building 20.000 Common Stock D. Common S Stock 30,000 Retained Eamings E. Cash & Builing 30,000 Common Stock 30,000
Answer:
The correct option is B,common stock 30,000 cash 10,000 and building 20,000
Explanation:
Geraldine Parker's contributions to the business -that is both cash and building are seen as his capital invested in the business.Invariably, it is assumed the new business owes Geraldine Parker the worth of resources invested
Appropriate double entries for the transaction are shown below
Dr Cash $10000
Dr Building $20000
Cr Capital $30000
This is the capital as at the start of the business,it is also possible that Geraldine Parker contributes additional capital which adds to existing capital.
Also,the profits made increases the stake of the owner in the business and drawings should e deducted from the capital in case the owner withdraws cash or goods from the business.
Identify whether the following items would be reported on the income statement or balance sheet. 1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable
Answer:
Explanation:
Items to be reported in the Balance Sheet.
1. Cash
3. Notes payable
5. Accounts receivable
Items to be reported in the income statement.
2. Service Revenue
4. Interest Expense
Regal Corporation has a component that is a discontinued operation. The revenues and expenses of the component were $120,000 and $100,000 respectively. The component was sold with a resulting loss of $80,000. The tax rate is 40%. What is the total gain or loss on discontinued operations (net of tax effects) that will be reported on the income statement.
Answer:
$36,000 loss
Explanation:
net effect after taxes = [(operation's revenue - operation's expenses) - gain/loss resulting from sale] x (1 - tax rate)
= [($120,000 - $100,000) - $80,000] x (1 - 40%) = ($20,000 - $80,000) x 60% = -$60,000 x 60% = -$36,000 or $36,000 loss
If the adjustment for accrued revenue is not recorded a.assets will be overstated. b.net income will be overstated. c.liabilities will be overstated. d.net income will be understated.
Answer:
The correct answer is d. net income will be understated.
Explanation:
The accumulated or accrued income will be represented by those that have been earned during a financial year but that have not been received or recorded in the payment, because the term has not yet expired. If they are not recognized within the accounting year, it is said that the income item is being underestimated, and for that reason the information in the financial statements is not being faithfully represented.
When asked what the concept "New Year's" meant to Holly, she mentioned the following: party, holiday, new beginning, football, fun, resolution, and winter. Holly's basic knowledge and feelings she has about this concept comprises her _________.a. conditioned memory
b. accessible memory
c. primary memory
d. semantic memory
e. episodic memory
Answer:
semantic memory
Explanation:
Semantic memory is the general knowledge that an individual has accumulated over the years, it involves experience related to one's culture. Semantic memory is one of the two categories of explicit memory.
It is not a specific and personal memory.
Holly's general knowledge of New year is party, holiday, new beginning, football, fun, resolution, and winter.
Episodic memory in the other hand is specific and personal recollection of an event.
Gabriel, the CEO of a large global production company, is excited about the introduction of statistics and computer simulations in the design stage of the company's products. Gabriel is using:____________
Answer:
Quantitative techniques.
Explanation:
Gabriel is using quantitative techniques in order to better analyze, strategize, plan, control, and direct his company's operations.
Statistical information and numerical analysis are quantitative techniques because they use mathematical models to reach a particular conclusion or result.
These techniques tend to be very effective because they are likely to be more accurate than qualitative techniques, however, they do not always suffice, and CEOs frequently have to rely on other techniques (such as intuition) to take decisions.
Alexander is a consultant at a finance company. Other employees approach him for help in all types of stressful situations. He always keeps calm and is quick at finding solutions to problems. In the context of personalities, Alexander can be described as being _____.
Answer:
These are the options for the question:
A) unconscientious
B) conscientious
C) emotionally stable
D) emotionally unstable
And this is the correct answer:
C) emotionally stable
Explanation:
Alexander can be described as being emotionally stable because he stays calm in stressful situations. In other words, he does not let situations stress him out so much until losing control, no matter how difficult those situations are.
He could also be probably described as conscientious but the statement in the question does not specify whether he is orderly or methodic or not, so the best option is C).
Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on the other hand, earn a profit by bringing together buyers and sellers of foreign currencies and earning a commission on each sale and purchase.
Answer:
Dealers, Brokers
Explanation:
The language "I offer to sell you my 1974 White Ford Torino" is: a. not a valid offer because it is oral. b. a valid offer. c. not a valid offer because it lacks a definite price. d. not a valid offer because there are no terms for payment.
Answer:
b. a valid offer.
Explanation:
A valid offer is when one party expresses interest of entering a contract that will be beneficial to both parties. There are three elements of valid offers:
- Communicated: the offeror communicates his willingness bro enter the contract with the offeree.
-Commited: is the offeror committed to the contract.
-Definite terms: in making the offer, the will be definite terms to the sale. This can be defined later during negotiation.
So the language "I offer to sell you my 1974 White Ford Torino" is a valid offer.
LCB Inc. has a 6% 20-year maturity $1,000 par value bond that currently has a yield to maturity of 7.5%. How much does LCB pay in annual interest on one of these bonds?
Answer:
$60
Explanation:
Data provided in the question
Yield to maturity = 7.5%
Time period = 20 years
Par value = $1,000
Annual interest Rate = 6%
Now the annual interest rate is
= Par value × annual interest rate
= $1,000 × 6%
= $60
In order to find out the annual interest rate , we multiplied the par value with the annual interest rate