Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?

Answers

Answer 1

Answer:

invested amount = $5,089.9

Explanation:

given data

invested = $5,000

interest rate = 8%

time = 25 year

interest rate = 10%

time = 20 year

solution

we get here interest amount that is

amount  = invested × [tex](1+r)^{t}[/tex]   .............1

amount    = $5,000 × [tex](1+0.08)^{25}[/tex]

amount  = $34,242.38  

and

now we consider here x amount is invested so here we get invested amount in 20 year with 10 % rate

amount  = invested × [tex](1+r)^{t}[/tex]   .............2

$34,242.38  =  invested × [tex](1+0.10)^{20}[/tex]

invested amount = $5,089.9


Related Questions

An off-duty, out-of-uniform police officer and his son purchased some food from a 7-eleven store and were in the parking lot when a carload of teenagers became rowdy. The officer went to speak to them and the teenagers assaulted him. The officer shouted for his son to get the 7-eleven clerk to call for help. The son entered the store, told the clerk that a police officer needed help, and instructed the clerk to call police. He returned 30 seconds later and repeated the request urging the clerk to say it was a code 13. The son claimed that the clerk laughed at him and refused to do it. The policeman sued the store.
1. The above case deals with the ____________.

Answers

Answer:

The correct answer is: Bystander Rule.

Explanation:

The Bystander Rule is a U.S. common law by which individuals are not punished after not aiding or calling for help when someone else might require assistance even when helping represents no risk to the individual. The law gives people morality let decide what to do under those scenarios knowing in advantage there is no legal penalty if no action is taken.

Final answer:

The case involves a  legal issue about whether a 7-eleven store's clerk's inaction in response to a police officer's son's request for assistance can lead to liability and grounds for the police officer to sue.

Explanation:

The case described deals with the legal issue of whether a store, through the actions of its clerk, has a duty to assist an off-duty, out-of-uniform police officer in danger and whether the police officer has grounds to sue the store for failing to provide assistance when requested.

The discussion centers on concepts such as duty of care, potential negligence, and whether the store's employees had any legal obligation to act upon the request for help. Furthermore, it explores the implications of the Good Samaritan laws where applicable, the store's policy, and potential liability.

The scenario implicates the responsibilities of businesses and their employees toward individuals in distress in their vicinity and assesses the legal consequences of inaction by the clerk.

The inaccuracy of the grapevine has more to do with the message output than with the input. a. True b. False

Answers

Answer:

The answer is b. False

Explanation:

Answer:

The correct answer is letter "B": False.

Explanation:

Gravepines are mostly often incorrect beliefs spread within an organization based on the subjective ideas of the employees. The reason why gravepines are inaccurate is that they tend to be rumors, then as the input is not objective, the output or the real situation that takes place has nothing to do with the rumor.

A rumor of​ "right sizing" at​ Ojai's engineering firm has him and his​ wife, Kaya, concerned about their preparation for meeting financial emergencies. Help them calculate their net worth or complete Worksheet​ 4, and calculate and interpret the current​ ratio, given the following assets and​ liabilities:Checking account ………………… $2,000
Savings account ………………….. $4,000
Stocks ……………………………. $8,000
Utility bills ………………………. $500
Credit card bills …………………. $1,000
Auto loan ……………………….. $2,600

Answers

Answer:

Explanation:

Net assets = Total assets - Total debt

We know:

Checking account ………………… $2,000

Savings account ………………….. $4,000

Stocks ……………………………. $8,000

Utility bills ………………………. $500

Credit card bills …………………. $1,000

Auto loan ……………………….. $2,600

Let's classify them as asset or liability:

Assets: Checking account, Stocks, Savings account = 2000+4000+8000=14000

Liability: Utility bills, Credit card bills, Auto loan = 500+1000+2600=4100

So, net worth is 14000-4100=9900

Current ratio = Monetary assets/ Current liabilities;

Monetary assets = 2000+4000 = 6000

Current liabilities = 1000 + 500 = 1500

Current ratio = 6000/1500 = 4

On January​ 1, Frederic Manufacturing had a beginning balance in WorkminusinminusProcess Inventory of $ 164 comma 000 and a beginning balance in Finished Goods Inventory of $ 25 comma 000. During the​ year, Frederic incurred manufacturing costs of $ 202 comma 000. During the​ year, the following transactions​ occurred: Job Cminus62 was completed for a total cost of $ 141 comma 000 and was sold for $ 157 comma 000. Job Cminus63 was completed for a total cost of $ 182 comma 000 and was sold for $ 213 comma 000. Job Cminus64 was completed for a total cost $ 81 comma 000 but was not sold as of yearminusend. The Manufacturing Overhead account had an unadjusted credit balance of $ 24 comma 000 and was adjusted to zero at yearminusend. What was the final balance in the Cost of Goods Sold​ account? A. $ 299 comma 000 debit balance B. $ 347 comma 000 debit balance C. $ 299 comma 000 credit balance D. $ 347 comma 000 credit balance

Answers

Answer:

A) $299,000

Explanation:

The question is to determine the balance in Cost of Goods sold for Frederic Manufacturing

Cost of Goods sold (COGS):

Job C-62                                                       $141,000

Job C - 63                                                     $182,000

Subtract: Over-allocated Overhead           ($24,000)

The Balance of COGS                               299,000

The Cost of Goods sold represents a direct cost associated with the manufacture of products sold by a company. COGS will usually include the cost of raw materials as well as direct labour that is associated with the production.

Answer:The answer is A

Explanation:

Cost of good sold Account

$

Job C minus 62 (Total cost )141,000

Add: Job C minus 63 (Total Cost )182,000

------------------

323,000

Less: Manufacturing overhead. 24,000

----------------

Balance. 299,000

-------------------

The cost of good sold is a direct cost, which are easily traced to the product or service

A manufacturer has a monthly fixed cost of $50,000 and a production cost of $7 for each unit produced. The product sells for $16 per unit. If the manufacturer produces and sells 3,000 units per month, indicate whether he will have a profit, loss or break-even.a. Profitb. Break-evenc. Lossd. None of the above.

Answers

Answer:

The manufacturer will have a c. Loss

Explanation:

The break-even point is the level of production at which the costs of production equal the revenues for a product and calculated by using following formula:

Break-even point in units = Fixed cost/(Selling price per unit-Variable cost per unit)  = $50,000/($16-$7) = $50,000/$9 = 5.556 units (rounding)

The manufacturer produces and sells 3,000 units per month < Break-even point in units. Therefore, the manufacturer will have a loss

Answer:

c. Loss

Explanation:

To break even, the total units sold would result in the total cost being equivalent to the total sales. As such, break even is the point where profit/loss is nil. Where sales is more than cost, the company makes a profit, otherwise a loss.

Given fixed cost = $50,000

Production cost per unit = $7 (variable)

Selling price per unit = $16

Units sold = 3,000

Profit/loss = sales - cost

= 16(3000) - (7(3000) +50,000)

= 48,000 - 71,000

= $23,000

This is negative as such as a loss.

If the rate of interest is 2% today, then you should be indifferent about receiving $500 today or ______. A. $500 in one year B. $502 in one year C. $510 in one year D. None of the above

Answers

Answer:

C. $510 in one year

Explanation:

Present Value of of a sum receivable after n years compounded at r% rate of interest is given by

PV = [tex]\frac{FV}{(1\ +\ R)^{n} }[/tex]

where PV=  Present Value as on today

          FV = Future Value of amount receivable

          R=  Rate of interest per annum

          n= Time period

Hence, PV of $510 receivable one year hence would be

= [tex]\frac{510}{(1\ +\ .02)^{1} }[/tex]

= $500 today

Final answer:

The concept of time value of money shows you should be indifferent about receiving $500 today or $510 in one year when the rate of interest is 2%.

Explanation:

The subject of your question revolves around the concept of time value of money in finance, which states that money available today is worth more than the same amount in the future due to its potential earning capacity. When the rate of interest is 2%, and you have the option of receiving $500 now or in the future, the amount in one year that would make you indifferent would likely have to be more than $500. To find the equivalent future sum, we calculate it using the formula FV = PV * (1 + r)^n, where FV is the future value, PV is the present value, r is the rate of interest and n is the number of periods, in this case, one year.

Inputting the given values, FV = $500 * (1 + 0.02)^1, we get $510. Therefore, the correct answer would be C. $510 in one year. You should be indifferent about receiving $500 today or $510 in one year if the interest rate is 2%.

Learn more about Time Value of Money here:

https://brainly.com/question/33886556

#SPJ3

Bacerra records purchases at invoice price and uses the perpetual inventory system. On July 5, Bacerra returned $12,000 of goods purchased on account to the seller. How would Bacerra record this transaction? Select one: A. Accounts Receivable 12,000 Inventory 12,000 B. Cash 12,000 Purchases 12,000 C. Accounts Payable 12,000 Inventory 12,000 D. Accounts Payable 12,000 Purchases 12,000

Answers

Answer:

C. Accounts Payable 12,000 Inventory 12,000

Explanation:

When Purchases Made using perpetual inventory system following Entry was made

Dr. Inventory                xxx

Cr. Account Payable   xxx

So, the purchase  return will be reverse entry of the above which will reduce inventory and account payable as well. The correct entry for the event is C. Accounts Payable 12,000 Inventory 12,000.

Final answer:

Bacerra records the goods return transaction as a debit to Accounts Payable and a credit to Inventory, reflecting the decrease in both the liability and the asset.

Explanation:

When Bacerra returns
$12,000 of goods purchased on account to the seller under the perpetual inventory system, the transaction is recorded by decreasing Inventory and decreasing Accounts Payable. Bacerra is effectively reversing the initial recognition of inventory at the time of purchase and also the associated liability that was recognized when the goods were originally purchased on account. The correct journal entry is:

C. Accounts Payable 12,000 Inventory 12,000

Therefore, the transaction would be recorded as a debit to Accounts Payable and a credit to Inventory, which reflects the reduction of both the liability for the returned goods and the asset that no longer needs to be accounted for.

The amounts of the assets and liabilities of Journey Travel Agency at December 31, 2018, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $1,341,000 on January 1, 2018, the beginning of the year. During the year, dividends of $75,000 were paid.

Accounts payable $ 68,500
Accounts receivable 274,000
Cash 187,500
Common stock 70,000
Fees earned 869,200
Land 544,000
Miscellaneous expense 6,500
Rent expense 40,000
Supplies 5,300
Supplies expense 4,400
Utilities expense 27,000
Wages expense 503,000
Required:
1. Prepare an income statement for the year ended December 31, 2018. Refer to the lists of Accounts, Labels, and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Answers

Answer:

                      Journey Travel Agency

                          Income Statement

          For the year ended December 31, 2018

Fees earned           $869,200

wages expense     503,000                          

Gross profit            $366,200

Operating expenses:

  Rent expense      40,000

  Utilities expense      27,000

 Supplies expense 4,400                          

Operating income     $294,800

Explanation:

In preparation of Income statement, we will present all nominal accounts which started from revenue (Fees earned) and deduct all expenses to arrive the operating income. It is important that we never forget the headings consists of Name of the company, What schedule to prepare and what period it is applicable in order for the reader of the statement understands the report well.

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,850 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,790 and direct labor cost of $770. Therefore, the amount of the applied overhead is: Multiple Choice $2,060. $2,560. $1,290. $770. $3,080.

Answers

Answer:

$1,290

Explanation:

The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.

If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:

[tex]O = \$3,850 - \$1,790 - \$770\\O=\$1,290[/tex]

The amount of the applied overhead is $1,290.

On the day Harry Potter was born, his parents deposited 78,000 galleons in the Gringotts Wizarding Bank. Assume that the bank promises a fixed interest rate of 3%. How much will Harry have in his account when he enters Hogwarts at age 12?

a. 78,000 galleons
b. 54,708 galleons
c. 106,080 galleons
d. 111,209 galleon

Answers

Answer:

d. 111,209 galleon

Explanation:

We calculate for the future value of a lump sum:

[tex]Principal \: (1+ r)^{time} = Amount[/tex]

Principal 78,000.00

time 12.00

rate 0.03000 (3% = 3/100 = 0.03)

[tex]78000 \: (1+ 0.03)^{12} = Amount[/tex]

Amount 111,209.35

This is the amount Harry will get when visit the bank with Hagrid in his 12th birthday assumming the interest rate keep constant over the 12 years period.

Assets are usually reported at their A. appraised value. B. historical cost. C. current market value. D. none of the above.

Answers

Answer:

B. historical cost.

Explanation:

In financial statements assets are reported at their cost of purchase or historical cost. This approach does not account for price fluctuations under present market conditions.

Historical cost is used to avoid inflating financial position of an organisation, as price changes in the market are largely temporary.

Valuation on the other hand considers an asset's fair market value.

Final answer:

In accounting, assets are generally reported at their original or historical cost. The historical cost principle is based on the belief that the value of money remains constant. This provides consistency and comparability in financial reporting.

Explanation:

In accounting, assets are generally reported at their historical cost. This is the original cost that was paid to acquire the asset. The historical cost principle is based on the assumption that the purchasing power of money remains stable over time, which allows for consistency and comparability in financial reporting. It's important to note that although this is the standard practice, it disregards any fluctuations in the market value of an asset after it has been acquired.

Learn more about assets here:

https://brainly.com/question/14826727

#SPJ6

The Harris Company is decentralized, and divisions are considered investment centers. Harris has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the oak chairs and then purchases and attaches the seat cushions. The Chair Division currently purchases the cushions for $22 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 800 chairs per quarter, and the Cushion Division is operating at capacity, which is 800 cushions per quarter. The two divisions report the following information: Chair Division Cushion Division Sales Price per Chair $85 Sales Price per Cushion $32 Variable Cost (other than cushion) 42 Variable Cost per Cushion 13 Variable Cost (cushion) 22 Contribution Margin per Chair $21 Contribution Margin per Cushion $19 Requirements 1. Determine the total contribution margin for Harris Company for the quarter. 2. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company?

Answers

Answer:

Explanation:

Sales Revenue:

Proceeds from sales of Chair Division = 800*85=68000

Proceeds from sales of Cusion Division = 800*32=25600

Transfer to chair division from cusion division = 800*32 = 25600

Total Sales Revenue = 119200

Variable Cost - VC

VC Chair Division (800*42) = (33600)

VC Cusion Division (1600*13)=(20800)

Transfer cost = (800*13)=(10400)

Total Contribution = 119200-33600-20800-10400=54400

Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would be willing to pay $98 for such a widget and that 58,000 units could be sold each year at this price. The current cost to produce the widget is estimated to be $58.

Summit has learned that a competitor plans to introduce a similar widget at a price of $88. In response, Summit may reduce its selling price to $88. If Summit requires a 25% return on sales, what is the target cost for the new widget?

a. $88.00
b. $66.00
c. $22.00
d. $24.50

Answers

Answer:

b.$ 66

Explanation:

The question requires that Summit requires a return on sales of 25 %. To achieve that the cost of goods sold should be 75 %.

if the revised selling price is                                         $ 88

the target cost price would be ( $ 88 * 75 %)              % 66                

A fire has destroyed a large percentage of the financial records of the Excandesco Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 16.3 percent. Sales were $1,785,000, the total debt ratio was .33, and total debt was $658,000. What is the return on assets (ROA)

Answers

Answer:

The return on assets (ROA) of Excandesco Company is 10.921%

Explanation:

Return on assets (ROA) helps an investor see how much after-tax profit a company gained for each dollar in assets, is calculated by formula:

ROA = Net Income/ Total Assets

The total debt ratio of Excandesco was .33:

Total debt ratio = Total Debts/ Total Assets = 0.33

Total debts = 0.33 x Total Assets

From the accounting equation: Total Assets = Total debts + Total Equity

Total Equity = 0.67 x Total Assets

Excandesco Company had return on equity (ROE) of 16.3 percent.

ROE = Net income/ Equity

Net income = ROE x Equity = 16.3% x 0.67 x Total Assets = 0.10921 x Total Assets.

ROA = Net Income/  Average Total Assets = (0.10921 x Total Assets)/Total Assets = 0.10921 = 10.921%

To find the return on assets for Excandesco Company, first determine total assets using the total debt ratio and total debt. Then, use the return on equity to calculate net income. Finally, divide net income by total assets to get the ROA, which is 10.92%.

Calculating Return on Assets (ROA)

The question is asking how to calculate the return on assets (ROA) for the Excandesco Company using the given information. ROA is a profitability ratio that gives an idea of how efficient a company is at using its assets to generate earnings. It is calculated as the net income divided by the company’s total assets. Given the return on equity (ROE) of 16.3% and the total debt ratio of 0.33, we can determine the equity ratio, which is 1 - total debt ratio. Using the total debt of $658,000, we can calculate the company’s total assets and subsequently the net income.

To start, let's calculate the company's total assets (A) using the total debt ratio (D/A):
Total assets = Total debt / Total debt ratio
Total assets = $658,000 / 0.33 = $1,993,939.39

Next, we calculate equity (E) by subtracting total debt from total assets:
Equity = Total assets - Total debt
Equity = $1,993,939.39 - $658,000 = $1,335,939.39

Now, using ROE, we find the net income (NI):
Net Income = ROE * Equity
Net Income = 0.163 * $1,335,939.39 = $217,757.11

Finally, ROA can be determined:
ROA = Net Income / Total Assets
ROA = $217,757.11 / $1,993,939.39 = 0.1092 or 10.92%

Therefore, the return on assets for the Excandesco Company is 10.92%.

You are considering a savings bond that will pay $ 100 in 9 years. If the interest rate is 1.9 %​, what should you pay today for the​ bond?

Answers

Final answer:

To find out the price you should pay for the bond today, you can use the present value formula. Given that the bond will pay $100 in 9 years with an interest rate of 1.9%, you should pay about $81.40 for the bond today.

Explanation:

The initial price that you should pay for the bond can be calculated using the formula for the present value of a single future amount in finance. This formula is PV = FV / (1 + r)^n, where PV is the present value (the price you should pay today), FV is the future value (the amount the bond will pay in the future), r is the annual interest rate in decimal form, and n is the number of years until the bond matures.

For this problem, FV = $100, r = 1.9% = 0.019, and n = 9. Plugging these values into the formula, we get PV = $100 / (1 + 0.019)^9. After doing the calculation, we find PV = $81.40. Therefore, you should be willing to pay $81.40 for the bond today if you would like a 1.9% return on your investment.

Learn more about Present Value Calculation here:

https://brainly.com/question/34763500

#SPJ3

Marie and Ethan form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $100, 800 in exchange for 400 shares of stock. I than contributes an installment note receivable (basis $25,000; lair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $162, 560; fair market value $203, 200) in exchange for 1, 600 shares. If an amount is zero, enter "0". Marie has income of_________ $ and________ $ basis in her 400 shares of stock and Ethan has income of __________$ and _______$ basis in his 1, 600 shares of stock.

Answers

Answer:im not gay

Explanation:

but i still love you

Marie reports income equal to $100,800 with a basis in her shares of the same amount, while Ethan generally would record no income from the transaction, with a basis in his shares equal to the aggregate basis of the contributed assets ($237,560).

The question concerns the tax implications and basis calculations for contributions to a corporation by individuals. Marie performs personal services valued at $100,800 in exchange for shares, while Ethan contributes various assets including an installment note, land, and inventory with different bases and fair market values for his shares. Under the Internal Revenue Code, services rendered in exchange for stock are considered taxable income to the service provider at the fair market value of the stock received. Therefore, Marie would have income equal to the fair market value of the 400 shares she receives. The basis of the stock she receives would also be equal to the value of the services provided, $100,800. On the other hand, Ethan's contribution of property (excluding services) to the corporation in exchange for stock is generally not considered a taxable event if certain conditions are met (e.g., if the contributors are in control of the corporation immediately after the exchange). Thus, Ethan would typically not recognize any gain or loss on the exchange, and his basis in the 1,600 shares would be the aggregate basis of the contributed assets ($237,560).

in your situaton, should purchaing health insurance be an individual decision or a collabrative decision with your family? explain your response

Answers

It would be the decision of family or individual depends on the knowledge that you and your family member possess on insurance.

Explanation:

It is always recommend to take insurance for both individual and family but the decision making purely depends on the knowledge and awareness towards the insurance of your family members.

Pointers to check:

How much premium is to be paid?What is the total income of the family?What about the number of dependents and their health condition?What is the benefit from the type of insurance?Why should I go for this policy?What are all the terms and conditions?

If these conditions are clearly answered by self-analysis then you / you along with your family members can decide.

The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the details of each invoice drawn up in the previous quarter. This information is not good because it is_______

Answers

Answer:

more than what is required

Explanation:

Being more information than requested by the CEO should process all that information to get to what he really asked for. For this reason the information is not good, since it is not what the CEO really asked for. That is, in this way the manager saved work by giving the raw information.

Steel mill wage costs increase by 18 percent over a year. What is the likely economic effect on the market for steel?

Answers

Final answer:

An 18% wage cost increase will likely cause a decrease in steel supply, resulting in an increased price and decreased quantity of steel sold, according to the law of supply and demand.

Explanation:

The likely economic effect on the market for steel when steel mill wage costs increase by 18 percent over a year will probably involve a shift in the supply curve. This happens because of the assumption that wage costs are a significant component of the total production cost to produce steel. When wage costs rise, it becomes more expensive for steel mills to produce the same amount of steel, causing a decrease in the supply.

This decrease in supply while demand remains constant will lead to an increase in the price of steel and a decrease in the quantity of steel sold (following the law of supply and demand).

Learn more about the Effect of Wage Costs on the Market here:

https://brainly.com/question/36166041

#SPJ12

An 18 percent increase in steel mill wage costs is likely to result in higher steel prices, potentially impacting demand and global competitiveness in the steel market.

When steel mill wage costs increase by 18 percent over a year, the likely economic effect on the market for steel can include the following:

Increased Production Costs: Steel producers will face higher labor costs, which can lead to an increase in the cost of producing steel products.

Price Increase: To offset the higher production costs, steel producers may raise the prices of their steel products. This could lead to an increase in the market price of steel.

Reduced Demand: Higher steel prices can potentially reduce the demand for steel, particularly among industries that are sensitive to price changes, like construction and manufacturing.

Impact on Competitiveness: Steel producers may face challenges in international markets if their prices become less competitive compared to steel from other regions.

Supply and Demand Dynamics: The specific impact on the steel market will depend on factors such as the overall supply and demand for steel, the global economic conditions, and the elasticity of steel demand.

In summary, an 18 percent increase in steel mill wage costs is likely to result in higher steel prices, potentially impacting demand and global competitiveness in the steel market.

To know more about demand:

https://brainly.com/question/33833381


#SPJ12

Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what is the minimum required reserve?

Answers

Answer:

Minimum Required Reserve are 1.33

Explanation:

The formula for the calculation of Cash reserve ratio is as follows:

Cash Reserve Ratio = Reserve Requirement x Bank Deposits

Cash Reserve Ratio = Reserve Requirement x ( Bank deposit + cash in vault )

8 = Reserve Requirement x ( 5 + 1 )

8 = Reserve Requirement x 6

Reserve Requirement = 8/6

Reserve Requirement = 4/3

Reserve Requirement = 1.33

Answer:

$76 million

Explanation:

($6 million/.08) + $1 million = $75 million + $1 million = $76 million

U.S. Interest Rates during the Credit Crisis During the credit crisis, U.S. interest rates were extremely low, which enabled businesses to borrow at a low cost. Holding other factors constant, this should result in a higher number of feasible projects, which should encourage businesses to borrow more money and expand. Yet many businesses that had access to loanable funds were unwilling to borrow during the credit crisis. What other factor changed during this period that more than offset the potentially favorable effect of the low interest rates on project feasibility, thereby discouraging businesses from expanding?

Answers

Answer:

The insufficient expected low cash flows from investment caused by low demand for goods and services by the household.

Explanation:

A recession refers to contraction of the business cycle when economic activity fall generally.

In order to get out of recession, governments usually employ macroeconomic policies like increasing government expenditure, reducing taxation, and increasing money supply.  When the money supply  is increased, it leads to fall in the interest rate.

Interest rate is a cost of investment; and it is expected that investment will rise when the interest rate falls. However, this was not so during the US credit crisis despite that U.S. interest rates were extremely low majorly due to low demand.

During the credit crisis, there was a general low demand for goods and services by the household. This made businesses to be discouraged from investing in new projects, because it was expected that low demand will lead low cash flows from the investment.

The insufficient expected low cash flows was therefore the major factor that discouraged businesses to borrow cheap funds that were allowed by the extremely low interest rate.

I wish you the best.

On December 28, I. Greasy Catering Company completed $600 of catering services. As of December 31, the customer had not been billed nor had the transaction been recorded. Demonstrate the required adjusting entry by choosing the correct statement below. Click the answer you think is right. a. Debit Accounts receivable for $600. b. Credit Accounts receivable for $600. c. Debit Catering revenue for $600. d. Debit Unearned revenue for $600.

Answers

Answer:

a. Debit Accounts receivable for $600

Explanation:

As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -

Accounts receivable (Debit) $600

Revenue (Catering)  (Credit) $600

Accounts receivable is debit because the company owes the amount from the  customers.

a)Please select the term that matches each definition.
Term:
a. Quantity Demanded
b. Demand Curve
c. Demand Schedule
d. Law of Demand
Definition:
1. A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.
2. The amount of a good that buyers are willing and able to purchase at a given price
3. The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.
4. A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices

Answers

The definitions for the following terms are explained below.

Explanation:

A. Quantity Demanded is the amount of a good that buyers are willing and able to purchase at a given price.

B. Demand Cure is a graphical representation of the relationship between the price of a good that buyers are willing and able to purchase at various prices.

C. Demanded Schedule is a table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.

D. Law Of Demand is to claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.

Quantity demanded is the amount of a good purchased at a given price; a demand curve is a graph showing the relationship between price and quantity demanded; a demand schedule is a table of prices and corresponding quantities demanded; the law of demand states that quantity demanded falls as price rises, ceteris paribus.

To match the terms with their corresponding definitions:

Quantity Demanded matches definition 2: The amount of a good that buyers are willing and able to purchase at a given price.

Demand Curve corresponds to definition 1: A graphical representation of the relationship between the price of a good and the amount of the good that buyers are willing and able to purchase at various prices.

Demand Schedule is associated with definition 4: A table showing the relationship between the price of a good and the amount that buyers are willing and able to purchase at various prices.

Law of Demand aligns with definition 3: The claim that, other things being equal, the quantity demanded of a good falls when the price of that good rises.

Adjustment error. The accountant for Stringer Services failed to adjust the Supplies account to recognize the amount consumed during March. As a result of this error, will the following items be overstated, understated, or unaffected? a. March revenues will be ________________. b. March expenses will be ________________. c. March net income will be _______________. d. Ending owner’s equity as of March 31 will be _________________. e. Assets as of March 31 will be __________________. f. Liabilities as of March 31 will be _________________.

Answers

Answer:

a. unaffected

b. understated

c. overstated

d. overstated

e. overstated

f. unaffected

Explanation:

The journal adjustment entry for supplies consumed should be;

Supplies expense A/C                                            Dr.

     To Supplies  A/C                                    

(Being supplies consumed recorded)

Supplies expense being an expense and supplies being an asset, the omission would lead to understated expenses since the expense has not been recorded and overstated assets since the cost of supplies used was supposed to be reduced from assets balance.

You are thinking of investing in Wave Runnerz, Inc. You have only the following information on the firm at year-end 2013: net income = $10 million, total debt = $65 million, and debt ratio = 35 percent. What is Wave Runnerz's ROE for 2018?

Answers

Answer:

8.28%

Explanation:

Given that,

Net income = $10 million

Total debt = $65 million

Debt ratio = 35 percent

Debt ratio = Total debt ÷ Total assets

35 percent = $65 million ÷ Total assets

Total assets = $65 million ÷ 35 percent

                     = $185,714,286

Wave Runnerz's ROE for 2018:

= Net income ÷ Equity

= $10,000,000 ÷ (Total assets - Debt)

= $10,000,000 ÷ ($185,714,286 - $65,000,000)

=  $10,000,000 ÷ $120,714,286

= 0.0828 or 8.28%

Unfortunately, Yasmin doesn't have enough money in her account right now. She needs to make additional contributions at the end of each of the next four years to be able to pay for the repairs. Her account currently has $4,000, which, along with her additional contributions, is expected to continue earning 7% annual interest. If she makes equal contributions each year, how large must each contribution be for Yasmin to have $9,000 after four years? A. $1,085 B. $487 C. $1,203 D. $846 E. $417

Answers

Answer:

Explanation:

   Future value of 4000 at 7% after 4 years = 5243

rest amount = 9000 - 5243

= 3757

This amount is to be accrued through annuity .

future value of annuity 846 at 7% after 4 years

= 3756.19 = 3757

so required annuity = 846

You have been asked to analyze the Value Net of the craft brewing and distilling industries in your state, and you have observed close relationships between those artisanal industries and local hospitality businesses (such as restaurants and lodging facilities) in the region under study. Those local hospitality businesses can be said to be

Answers

Answer:

Those local hospitality businesses can be said to be Cooperators.

Explanation:

Co-operation: Cooperation is an art, which is not so easy to be mastered. The primary purpose of the cooperation is to gain mutual benefit. Yet because not everyone can understand the true sense of forming alliances (even if some do understand), it is difficult for them to create or manage those alliances because there are several factors which affect the relationships between associates. So, to have healthy and strong cooperation there is a need to get a grasp over those influencing factors.

Now there are reasons to believe that what the analysis implies (that there is a close relationship between these 2 industries) is true. Although how? let's get into those reasons.

Both industries come in the same domain that is of consumption.Both can do their business separately without cooperating.But still, if they do cooperate they can get more than they do get separately.

An example to have a close look on the relationship: Consumer A has to go to 2 different places to get these 2 different services or products, consumer B just go to the one place and get all the service as well as get the product if he desires. So, Which one would be more satisfied? Consumer B for sure.

The American Floral Council used an ad that showed three flower arrangements varying in size froma single rose to a very large elaborate arrangement. The caption simply read, "Just how mad isshe?" This ad relies on which of the following situational influences for its effectiveness?

A. purchase task
B. social surroundings
C. physical surroundings
D. psychological effects
E. antecedent states

Answers

Answer: E. Antecedent states

Explanation: The ad relies on antecedent states for its effectiveness. Antecedent states are features of an individual that are not lasting characteristics including mood, social, physical or time factors and momentary conditions such as acute anxiety, pleasantness, cash on hand, fatigue and so on. By asking just how mad?, the emotions of the viewer is elicited which might leads to him or her making a purchase, an additional purchase or none at all. As an aspect of situational influences, antecedent states are temporary.

A corporation has 12 comma 000 shares of 10​%, $ 102.00 par noncumulative preferred stock outstanding and 28 comma 000 shares of nominuspar common stock outstanding. At the end of the current​ year, the corporation declares a dividend of $ 220 comma 000. What is the dividend per share for preferred stock and for common​ stock? ​(Round your answer to the nearest​ cent.)

Answers

Answer:

preferred 10.2 per share

common 3.49 per share

Explanation:

the preferred stock will receive their dividends firsht:

12,000shares  x $102 each x 12% return = 122.400‬

$122,400/12,000 shares = $10.2 per share

available for common stock:

220,000 declared dividends - 122,400 preferred=  97,600

$97,600 / 28,000 common stock = 3,4857 = $ 3.49

Suppose that disposable income, consumption, and saving in some country are $800 billion, $700 billion, and $100 billion, respectively. Next, assume that disposable income increases by $80 billion, consumption rises by $56 billion, and saving goes up by $24 billion. What is the economys MPC? Its MPS?

Instructions: Round your answers to one decimal place.

MPC =

MPS =

What was the APC before the increase in disposable income? After the increase?

Instructions: Round your answer to two decimal places.

APC before the increase in disposable income =

Instructions: Round your answer to three decimal places.

APC after the increase in disposable income =

Answers

Answer:

MPC = 0.7

MPS = 0.3

APC before the increase in disposable income = 0.875

APC after the increase in disposable income = 0.859

Explanation:

Given that,

Disposable income = $800 billion

Consumption = $700 billion

Savings = $100 billion

Further,

Disposable income increases by $80 billion

Consumption rises by $56 billion

Saving goes up by $24 billion

Therefore,

Marginal propensity to consume(MPC):

= Change in consumption level ÷ Change in disposable income

= $56 billion ÷ $80 billion

= 0.7

So, Marginal propensity to save = 1 - MPC

                                                      = 1 - 0.7

                                                      = 0.3

Average propensity to consume(Before increase in disposable income):

= Consumption ÷ Disposable income

= $700 billion ÷ $800 billion

= 0.875

Average propensity to consume(After increase in disposable income):

= Consumption ÷ Disposable income

= ($700 + $56) billion ÷ ($800 + $80) billion

= $756 billion ÷ $880

= 0.859

Other Questions
How many 4-permutations of [10] have maximum element equal to 6? How many have maximum element at most 6? Consider two acids: CH3CO2H (acetic acid, pKa = 4.8) and C6H5CO2H (benzoic acid, pKa = 4.2). Which acid is the stronger acid? Select the single best answer.a. benzoic acidb. acetic acid the table describes several organisms in a Georgia ecosystem. Which path show one way that energy can move through the ecosystem? a) saw palmetto-> Eastern woodrat-> bald eagleb) bald eagle-> Eastern woodrat-> rust fungusc) black bear-> saw palmetto-> rust fungus d) Eastern woodrat-> rust fungus-> saw palmetto _________ was the biggest advantage that theRAF (Royal Air Force) had over the Luftwaffe.A) RADARB) More AircraftC) Rocket TechnologyD) Faster Fighter Planes The length of a rectangle is 1 7/9 in., and its width is 3/4 of its length. Find the area of this rectangle. Can someone please write a 250-word essay about one of these systems Digestive systemRespiratory systemMuscular and skeletal systemsNervous systemEndocrine systemReproductive systemExcretory systemImmune and lymph systemsCardiovascular system What is the most helpful question to ask when listing your options for health decisions? 10. The media claim that the economy isenteringa phase of growth and prosperity.They point to lower unemployment rates and increased productivity. This analysis is false, though. The number of people filing for bankruptcy has increased every month for the last six months, and bankruptcy lawyers report that they are busier than they have been in years. Which of the following is an assumption on which the argument depends Laner Company has the following data for the production and sale of 2,000 units. Sales price per unit $800 per unit Fixed costs: Marketing and administrative $400,000 per period Manufacturing overhead $200,000 per period Variable costs: Marketing and administrative $ 50 per unit Manufacturing overhead $ 80 per unit Direct labor $ 100 per unit Direct materials $ 200 per unit What is the contribution margin per unit? Speed of a rocket At t sec after liftof, the height of a rocket is 3t 2 ft. How fast is the rocket climbing 10 sec after liftof? The functions f(x)=3/4x+2 and g(x)=(1/4)x+1 are shown in the graph. What are the solutions to 34x+2=(14)x+1? Select each correct answe 4) Consider a separate rocket, also in deep space with a mass of 30.0 kg. If the rocket isobserved to be travelling at v = 5.00m/s at t = 3.00 s and then travelling at v= -2.00m/s at t = 14.0 swith constant acceleration, calculate:a) the acceleration, .b) the force F, acting on the rocket from the thrusters. Briefly describe the Portage Railroad Which school of thought in psychology believes that people can freely choose to live more creative, meaningful, and satisfying lives? While Brendan is vacationing with his family at the cabin, they take a motorboat on the river. The motorboat travels18 miles per hour in still water.1. Let w represent the speed of the river current in miles per hour. Write an expression for how fast themotorboat is able to go downstream (with the current) Write another expression for how fast the motorboat isable to go upstream (against the current).2. The motorboat travels 49 miles upstream in the same time it takes to travel 77 miles downstream. What is thespeed of the current w? Use the Elimination Method to solve. Select the sentence that violates theguidelines for apostrophes.My brother's dog is very small and verybouncy. She's funny when she getsexcited. She runs around in circle's, tryingto run and jump at the same time. It'shilarious to see her do this because sheends up doing flips. Alicia works 40 hours per week as a dental assistant. What is her monthly income? What is her yearly income? Consider the following system of equations made up of Lines 1 and 2.Line 1: 6x - 7y = 25Line 2: 2x + 9y = -3Select all that are true about the system.3(0.3) is a solution for Line 1 only(0, 0) is a solution for Line 2 only.1-6. 1) is a solution for Line 2 only.13.-1) is a solution to the system(3.1) is a solution to the system Beth gets on the elevator at the sixth floor. She rides up three floors to meet Doris. They ride down seven floors to meet Julio. How many floors have is Beth from where she started A package falls out of an airplane that is flying in a straight line at a constant altitude and speed. If you ignore air resistance, what would be the path of the package as observed by the pilot? As observed by a person on the ground?