Answer:
$230,000
Explanation:
Given:
Trade accounts receivable = $250,000
Uncollected accounts = $20,000
Computation:
Total Amount Of Risk = (Trade Account receivable - Uncollected Accounts)
=( $250,000 - $20,000)
= $230,000
No , Any financial loss danger off-balance sheet resulting from registered accounts or receivable notices not include in it.
Waterway Industries reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw materials inventory 300000 Ending work in process inventory 900000 Ending raw materials inventory 480000 Raw materials purchased 1200000 Direct labor 1060000 Manufacturing overhead 780000 Waterway Industries's cost of goods manufactured for the year is 1. $3220000. 2. $2860000. 3. $2680000. 4. $3040000.
Answer:
The correct answer is option (D).
Explanation:
According to the scenario, the given data are as follows:
Beginning work = $1,080,000
Beginning raw materials = 300,000
Ending work = 900,000
Ending raw materials = 480,000
Raw materials purchased = 1,200,000
Direct labor = 1,060,000
Manufacturing overhead 780,000
First we calculate direct material used,
Direct material used = 300,000 + 1,200,000 - 480,000
= 1,020,000
So, we can calculate the cost of goods manufactured by using following formula:
Cost of Goods Manufactured = Direct Material Used + Direct Labor + Manufacturing Overhead + Opening Work - Closing Work
= 1,020,000 + 1,060,000 + 780,000 + 1,080,000 - 900,000
= $3,040,000
Hence, the cost of goods manufactured is $3,040,000.
Karen plans and directs the purchase, development, and disposition of real estate on behalf of the business. Karen focuses on long-term strategic financial planning rather than on day-to-day operations of the property. What type of property manager is Karen?
Answer:
The correct answer is: A real estate asset manager.
Explanation:
Real state asset managers are those executives in charge of complete property firms in the real state business. The roles of a real state asset manager do not only include supervising how many properties are being sold but finding ways to increase the property's value. Besides, this type of manager is involved in assessing the real state brokers on providing customers the most efficient investment method for their future property.
Rare earth metals are used to manufacture some important electronic components in popular products like cell phones. These metals are not really rare, but they are expensive to extract from the ground. What happens to the market for the rare earth metals if these extraction costs increase?
If extraction costs for rare earth metals increase, it will impact the market by making them more expensive for manufacturers, potentially leading to a decrease in demand.
Explanation:If the extraction costs for rare earth metals increase, it will have an impact on the market for these metals. The increase in extraction costs will make it more expensive for manufacturers to obtain the rare earth metals needed to manufacture electronic components. As a result, the prices of these metals are likely to increase, making them less affordable for manufacturers and potentially leading to a decrease in demand. This could also create opportunities for alternative materials to be used in the manufacturing process, potentially impacting the rare earth metals market in the long term.
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A motorcycle cost $7,250. If it depreciates by 12% per year, how much will it be worth after one year?
The value of motorcycle after the end of one year will be $6,380.
The depreciation is the reduction in the value of the fixed assets due to the passage of time, wear and tear. It is charged at the end of each year upon the book value of the asset.
There are most commonly three methods to determine depreciation:
Diminishing balanced method.Straight-line method.Double declining balanced method.Computation:
Given,
Cost =$7,250
Rate of depreciation =12%
First the depreciation is computed:
[tex]\begin{aligned}\text{Depreciation}&=\text{Cost}\times\text{Rate of Depreciation}\\&=\$7,250\times12\%\\&=\$870\end{aligned}[/tex]
Now, the worth of motorcycle is computed at the end of one year:
[tex]\begin{aligned}\text{Value of Motorcycle after 1 year}&=\text{Cost\;-\;Depreciation}\\&=\$7,250-\$870\\&=\$6,380\end{aligned}[/tex]
Thus, the worth after one year is $6,380.
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The partnership of Chau and Michelle was formed on January 1, 2015. At that date the following assets were invested:
Chau
Michelle
Cash
$220,000
$210,000
Inventory
$120,000
$450,000
Building
$0
$870,000
Machine and equipment
160,000
$0
The building is subject to a mortgage loan of $430,000, which is to be assumed by the partnership. The partnership agreement provides that Chau and Michelle share profits or losses 20% and 80%, respectively. Michelle's capital account at January 1, 2015, should be
a. $1,100,000
b. $1,530,000
c. Cannot be computed from the above information.
d. $1,210,000
a. $1,100,000
Answer: The answer is a. $1,100,000
Explanation:
Statement of affairs as at ist January 2015
$
Building 870,000
Add: inventory 450,000
Add: Cash 210,000
---------------
1,530,000
Less: Mortgage Loan 430,000
--------------
Capital. 1,100,000
----------------
The Michele capital Account is $1,100,000
If a journal entry and posting for Salaries Expense that incurred during this year but will be paid until next year is accidentally omitted, what would be the impact on the financial statements?
A) Net Income would be overstated (Expenses understated) and Balance Sheet liabilities would be understated.
B) Net Income would be overstated (Expenses understated) and Balance Sheet assets would be overstated.
C) Net Income would be understated (Expenses overstated) and Balance Sheet assets would be understated.
D) Net Income would be understated (Expenses overstated) and Balance Sheet liabilities would be understated.
Answer: The correct answer is A) Net Income would be overstated (Expenses understated) and Balance Sheet liabilities would be understated.
Explanation: An omission of a posting of an expense incurred during a financial year and payable in thesubsequent year will lead to an understatement of expenses and understatement of liabilities.
In general, when an expense is omitted it leads to increased net income as less expense will be knocked off against income.
The balance sheet on the other hand will be understated in terms of a reduced liability balance.
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to ________ and ________ real GDP per capita in the domestic country. a. diseconomies of scale; increase b. diseconomies of scale; decrease c. economies of scale; increase d. economies of scale; decrease
Answer: c) economies of scale; increase
Explanation:
When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to economies of scale and increase real GDP per capita in the domestic country.
When this industry choose to break out of this limitation placed on them due to the small size of market in their country, the idea of opening trade to the world market would lead to reduction in production costs since they now have a larger market (and thus produce more). Also, the real GDP per capita in the domestic country should increase since the company in this domestic nation has expanded its production to the world market.
NOTE:
Economies of scale occur when the cost of production is now reduced because there is an increase in a company's production.
Greg is the marketing manager of an apparel manufacturing company that specializes in winter wear. He personally visited the old age homes in which the company sponsored Christmas lunches, as part of its corporate social responsibility initiative. In the context of managerial roles, which of the following roles does Greg illustrate in this scenario?a. leader role
b. monitor role
c. figurehead role
d. disseminator role
Answer: (C) Figurehead role
Explanation:
According to the given question, Greg is one of the marketing manager in the manufacturing company and he visited to the old age home where the company organized the Christmas lunch.
The company initiate the social responsibility and based on the given scenario, the Greg is best illustrating the figurehead role.
The figurehead role is one of the essential role of the manager in an organization as it is the responsibility for inspiring the employees of an organization.
Therefore, Option (C) is correct answer.
A car rental cost $90.00 last year. This year it cost $102.99. What is the inflation rate, to the nearest tenth percent?
Answer:
14.43%
Explanation:
Given that
Last year rental cost of the car = $90
This year rental cost of the car = $102.99
So, the inflation rate equal to
= (This year rental cost of the car - Last year rental cost of the car) ÷ (Last year rental cost of the car)
= ($102.99 - $90) ÷ ($90)
= ($12.99) ÷ ($90)
= 14.43%
We simply applied the above formula to compute the inflation rate
Answer:
14.43%
Explanation:
To calculate inflation rate subtract the previous price from the current price. Then divide your answer from the previous price. Multiply that by 100 to get the percentage and thats your answer.
Suppose again that the Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. The bank now sells $5,000 in securities to the Federal Reserve Bank in its district, receiving a $5,000 increase in reserves in return. What level of excess reserves does the bank now have? By what amount does your answer differ (yes, it does!) from the answer to question 3?
Answer:
$5,000
Explanation:
Data provided in the question:
Reserves balance = $20,000
Checkable deposits = $100,000
Reserve ratio = 20 percent
Selling amount for securities = $5,000
Increase in reserves = $5,000
Now,
New reserve balance = Reserves balance + Increase in reserves
= $20,000 + $5,000
= $25,000
Required reserve = 20% of Checkable deposits
= 20% of $100,000
= $20,000
Therefore,
Excess reserves = Actual reserve - Required reserve
= $25,000 - $20,000
= $5,000
The method of slicing digital messages into parcels, transmitting them along different communication paths, and reassembling them at their destinations is calledA) multiplexing.B) packet switching.C) packet routing.D) ATM.
Answer: Packet switching.
Explanation:
Packet switching is a method of transmitting information where the information is divided into packets and sent, and then the information packets are reassembled back together when the information get to the destination.
Matt is planning to invest $7,000 in a mutual fund at the end of each of the next eleven years. If his opportunity cost rate is 5 percent compounded annually, how much will his investment be worth after the last annuity payment is made? Use a financial calculator to determine the amount.
a. $92,665
b. $95,526
c. $97,257
d. $99,448
Final answer:
To calculate the value of Matt's investment after the last annuity payment, we can use the formula for the future value of an ordinary annuity. Plugging in the given values, we find that Matt's investment will be worth approximately $95,526 after the last annuity payment is made.
Explanation:
To calculate the value of Matt's investment after the last annuity payment, we can use the formula for the future value of an ordinary annuity:
[tex]FV = PMT * ((1 + r)^n - 1) / r[/tex]
Where FV is the future value, PMT is the annuity payment, r is the interest rate, and n is the number of periods.
In this case, PMT is $7,000, r is 5% (0.05), and n is 11. Plugging these values into the formula:
FV = $[tex]7,000 * ((1 + 0.05)^11 - 1) / 0.05 = $95,525.93[/tex]
So, Matt's investment will be worth approximately $95,526 after the last annuity payment is made. Therefore, the correct answer is b. $95,526.
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:________.
a. marginal analysis.
b. basing decisions on total, rather than marginal, value.
c. an unintended consequence.
d. the fallacy of composition.
Answer:
a. marginal analysis.
Explanation:
The cost to add the fried will be the cost added to obtain the fries rather than the cost of a single medium order of fries.
This is the basis of the marginal analysis on which the revenue and marginal cost represent the extra revenue granted for an additional unit and the extra cost for producing an unit. In theory, the firm produce when marginal revenue matches marginal cost.
Coaches can receive a bonus from the booster club at the conclusion of a season.
True / False.
Answer:
The statement is true
Explanation:
Booster club is the organization which is formed in order to support the organization, associated club and sports team. The club support through coordinating events or raising the funds.
So, yes, the coaches are legally could receive the bonus from the booster club at the season conclusion as the booster clubs are not state funded, so they are intended to use the money for the school resources.
And there is no legal matter is involves with giving the coaches bonuses as the booster club raise the fund from the extra circular activities.
Final answer:
Coaches can potentially receive bonuses from the booster club at the end of a season, but this depends on the school district and booster club policies, and must adhere to relevant regulations.
Explanation:
Whether coaches can receive a bonus from the booster club at the conclusion of a season is a matter that varies by school district and individual booster club policies. Generally, it is possible for coaches to receive bonuses or other forms of appreciation for their efforts during the season, which could include monetary rewards, gifts, or other incentives. These bonuses are typically given to acknowledge the coach's hard work, dedication, and any successes the team may have achieved during the season. However, there are often specific rules and regulations governing such payments to ensure they do not violate state or federal regulations or create conflicts of interest. School districts and booster clubs usually have clear policies outlining how and when such bonuses can be awarded to coaches.
Clara is an advertising director who has been tasked with optimizing her company's Google Search campaign. How can Clara use the optimization score to benefit her campaign?
A. To judge the popularity of her website compared to others
B. To compare the efficacy of her ad text creative with that of other ads
C. To understand the network performance of her website
D. To find how close her campaign is from potential ideal results
Answer:
To find how close her campaign is from potential ideal results
Explanation:
Organisations use the optimisation score to know how the Google ads account they set up would likely perform. The scoring is between 0% to 100%, and when the account attains the 100% mark, it would likely perform optimally.
The scores are usually put together with a list of recommendations an organisation can pick from and in each of the recommendations, the organisation can see how their optimisation score would be affected should they decide to apply that recommendation.
Consider the accompanying data on breaking load (kg/25 mm width) for various fabrics in both an unabraded (U) condition and an abraded (A) condition. Use the paired t test to test: H0: μD = 0 versus Ha: μD > 0 at significance level 0.01. (Use μD = μU-A.) Note: The data below is formatted such that you can copy and paste it into R.
Answer:
Explanation: see attachment
The question requires a paired t-test to compare the mean breaking loads of unabraded and abraded fabric samples. This test will determine the validity of both a null and alternative hypothesis, using a significance level of 0.01 to evaluate the obtained p-value.
Explanation:The question is asking you to perform a paired t-test on the given data to test two different hypotheses: the null hypothesis (H0) that the mean difference of the breaking load (μD = μU - μA) is equal to zero, and the alternative hypothesis (Ha) that the mean difference is greater than zero.
The paired t-test is used to compare the means of two related samples to determine if there is a significant difference between them. In this case, the comparison is made between unabraded and abraded fabrics.
After performing the t-test, the p-value obtained would be compared to the significance level (0.01). If the p-value is less than the signficance level, we reject the null hypothesis and accept the alternative hypothesis. If the p-value is greater than the significance level, we fail to reject the null hypothesis - concluding that there is not enough evidence to prove that the mean difference is significant.
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Mercy Eston, a start-up company, has a small office space. Its employees often complain about the lack of personal space because of a congested seating arrangement and lack of a proper ventilation system. In this scenario, the employees of Mercy Eston are most likely facing _____ to communication.
Answer:
Physical Barriers
Explanation:
Physical Barriers refers to the physical set up or physical environment of an organization which act as a barrier in sending and receiving messages between employees. These are environmental and natural barriers which obstruct the swift flow of communication at a workplace.
Examples of physical barriers to communication would include, issues in design of the workplace, workplace interiors such as spacing, ventilation, noise, etc.
The given case relates to such physical barriers to communication.
The employees at Mercy Eston are likely encountering physical barriers to communication due to the cramped and poorly ventilated office environment, which can inhibit effective interactions and impact overall job performance.
The employees of Mercy Eston are most likely facing physical barriers to communication. A congested seating arrangement and lack of a proper ventilation system can create discomfort and distractions that inhibit the flow of communication across the office. It is crucial for an office to support effective communication by ensuring sufficient personal space and comfort for employees. Studies have shown that environmental factors such as space customization, physical comfort, and workplace aesthetics can significantly impact psychological wellbeing, job satisfaction, and overall productivity. Furthermore, the physical proximity between colleagues needs to be appropriate, neither too far (public speaking distance) nor too close (intimate distance), to maintain the delicate balance of effective verbal communication within a business setting.
Kirsten is experiencing a great deal of anxiety about her first Algebra II test. "I know that Mr. Dade has a reputation for being tough, and everyone thinks that girls are no good in math. I'll do terrible, and he'll think, 'Sure, she's a girl; she can't do math.' I can hardly breathe." Kirsten is experiencing:
Answer:
Stereotype threat
Explanation:
Stereotype refers to preconceived perspective about a particular people or group. Stereotype threat, coined by Claude Steele and Joshua Aronson, refers to a way a person behaves that tend to confirms the negative stereotype about a particular race, gender and others. In Kristen's case the added stress generated by her anxiety about the Algebra II test as a result of the supposedly tough teacher coupled with the preconceived notion that girls are not good in math may lead to her actually failing the test or performing badly. If this feeling were to be removed she may not actually fail or perform poorly in the exam.
Final answer:
Kirsten is experiencing severe test anxiety compounded by stereotype threat, which is impacting her ability to perform well in her Algebra II test. To combat this, she should be well-prepared, practice extensively, and possibly use strategies like writing about her anxiety or self-affirmation to reduce its effects.
Explanation:
Kirsten is experiencing severe test anxiety, a condition that raises concern for many students. This form of anxiety can significantly hinder a student's performance by causing mental interference, making it difficult to concentrate, and possibly leading to physical symptoms like restlessness and nausea. In Kirsten's case, the compounded impact of stereotype threat, the fear of confirming a negative stereotype about one's group, specifically regarding the false notion that 'girls are no good in math', exacerbates her anxiety.
Combatting this anxiety involves being well-prepared and practicing the material extensively. Additionally, research suggests that strategies like writing about anxieties, self-affirmation, and reflecting on personal qualities can help alleviate the impact of test anxiety and stereotype threat. This multifaceted approach can empower students like Kirsten to overcome their fears and perform to the best of their abilities.
_____ is a term that describes a situation in organizations when there is a variety of demographic, cultural, and personal differences among the people who work there and the customers who do business there. a. Cultural advantage b. Affirmative differentiation c. Diversity d. Cultural proaction e. Acculturation
Answer and Explanation:
c. Diversity
At the strategic level of planning, managers must pay attention to the macroenvironment, be future- oriented, and ____.a. have more focus on technology b. have more control over employee issues c. have less competition deal with uncertain and competitive conditions
Answer:
deal with uncertain and competitive conditions
Explanation:
Strategic level planning required being able to see the big picture, which includes the company's environment and how it affects the company. The manager must also realize that the environmental conditions change constantly and if you are planning ahead for the next 10 years, then a lot changes will happen. You must understand that your plans must be able to deal with uncertain environmental conditions, specially those regarding the competition and government regulations. A lot of what ifs must be included in your strategic planning.
Suppose that commodity prices across the economy begin to fall and consumers and firms begin to expect a lower rate of future inflation. What do we expect to happen to the SRAS curve and short‐run Phillips curve?A. The SRAS curve will shift to the left, and the short‐run Phillips curve will shift downward. B. The SRAS curve will shift to the right, and the short‐run Phillips curve will shift downward. C. The SRAS curve will shift to the left, and the short‐run Phillips curve will shift upward. D. The SRAS curve will shift to the right, and the short‐run Phillips curve will shift upward. E. The LRAS curve will shift to the right, and the short‐run Phillips curve will shift upward
Answer:
B) The SRAS curve will shift to the right, and the short‐run Phillips curve will shift downward.
Explanation:
When the price of key inputs decreases, then the short-run aggregate supply (SRAS) curve shifts to the right, generally resulting in higher production levels (higher supply) due to lower production costs. On the other hand, when the price of key inputs increases, then the SRAS curve shifts to the left.
When inflation expectations decrease or SRAS curve shifts to the right, the short-run Phillips curve shifts to the left.
"The price elasticity of supply for umbrellas is 2. Suppose you're told that following a price increase, quantity supplied increased by 30 percent. What was the percentage change in price that brought this about?"
Answer:
15%
Explanation:
Price elasticity of supply is the responsiveness of proportionate change in quantity supplied due to proportionate change in price.
It is given by the following formula:
Price elasticity of suppl = % change in quantity supplied / % change in price
2 = 30% / % change in price
% change in price = 30% / 2
= 15%
Price increased by 15% that induced an increase in quantity supplied by 30%.
_____ are eager to try new ideas and products. They typically have higher incomes, are better educated, and are more cosmopolitan than other categories of adopters. a. Early adopters b. Early majority c. Laggards d. Innovators e. Late majority
Answer:
The answer is D. Innovators
Explanation:
Innovators are risk takers. They are adventurous.
Innovators are also the first set of people to try a product or idea.
The price of the new product is usually high, but because we they are higher income.
Innovators are also more educated and they try to explore the market.
Innovators are willing to pay high price for new product. Example is the latest iphone
If the journal entry to record services provided to a customer on account was recorded with a debit to Accounts Receivable and a credit to Service Revenue, then the company is using ______ basis accountingaccrualcashinvestingoperating
Answer:
Accrual
Explanation:
The are two accounting bases namely; cash basis and accrual basis.
In cash basis, sales and expenses are recorded only when cash is received and paid respectively.
In the accrual system, sales and expenses are recorded when the goods/services are delivered for sales and when the expense is incurred whether cash has been received/paid or not.
If the journal entry to record services provided to a customer on account was recorded with a debit to Accounts Receivable and a credit to Service Revenue, then the company is using the accrual basis as a receivable has been recognized pending the receipt of cash.
A production possibilities frontier ___________________.
Select the correct answer below:
a. is the same as a budget constraint.
b. is best used when a specific budget is provided.
d. demonstrates the constraints that society faces in production.
d. is a straight line.
Answer:
A production possibilities frontier:
d. demonstrates the constraints that society faces in production.
Explanation:
A production possibilities frontier (PPF) is a curve that shows the quantity of two goods that can be produced using the same limited resources. The PPF stipulates that resource in an economy like labor, raw materials and and capital are limited thus there is always a point in time where the quantity of goods to be produced is also limited. An value on the PPF curve represents the maximum production limit that can be achieved when the resources in the economy are utilized efficiently. A value below the curve represents inefficiency in production and represents a potential to improve a country's production capability. To move beyond the PPF curve a country has to change it's future technology.
A PPF differs from a budget constrain in one major aspect aspects. The budget constraint is a straight line meaning since it's slope is given by relative prices of two goods, while the PPF is curved due to the law of diminishing returns.
"The market price of airline flights increased recently. Some economists suggest that the price increased because there has been an increase in the number of business travelers. If the economists are correct, it must be the case that:"
Answer:
Prices increases due to high demand of goods and services
Explanation:
It has always being a common occurrence in business, when there is increase in demand than the available suppliers, seller tends to increase the price of the limited resources.
these is against the law of demand which state that the higher the price the lower the quantity demanded.
But, when sellers or companies notice that people are willing to get an items or services at any cost, the price tend to increase so that there profit will increase.
it is seen that there is an increase in the number of business travelers whom will travel with flights at any cost.
Answer:
Prices increases due to high demand of goods and service.
Explanation:
This means that the higher price the better quality. This is not always true but mostly. The higher price the better service.
The higher pricing can be Biden also
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Zack received a gift of stock from his uncle on June 20 of the current year. Zack's uncle had a basis in the stock of $4,000, but the fair market value of the stock on June 20 was only $1,500. Zack held the stock for three months and then sold it for $1,200. What basis in the stock will Zack use to determine his gain or loss on the sale of the stock?
Answer:
$4,000
Explanation:
Answer:
The answer is $1500
Explanation:
Since the FMV is lower than the original cost of the gift the dual basis would take place.
Dwayne plans to invest $4,700 in a savings account at the beginning of each of the next 12 years. If his opportunity cost rate is 7 percent compounded annually, how much will his investment be worth at the end of 12 years?
Answer:
his investment will be worth $39,944 at the end of 12 years.
Explanation:
FV = PV(1 + i)^n
= $4,700 + $4,700*PVAF(7%,11 years)
= $4,700 + $4,700*7.49867
= $4,700 + $35,244
= $39,944
Therefore, his investment will be worth $39,944 at the end of 12 years.
Answer:
$ 10861.7
Explanation:
Amount at the end of 12 yrs should be gotten by compound interest.
A = p(1+ r/n)^nt
= 4700(1 + (0.07/12))^ (12*12)
= 4700(1+(5.833*10^-3))^(144)
A = 4700(1.0058333)^(144)
A = 4700*2.31
A = 10861.7
A=$ 10861.7
On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dernier Company for $700,000. For the year ended December 31, Dernier reported net income of $180,000 and paid cash dividends of $60,000 on its common stock. At December 31, the carrying value of Matthews' investment in Dernier under the equity method is:
a. $688,000.
b. $700,000.
c. $712,000.
d. $724,000.
Answer:
d. $724,000.
Explanation:
700,000 investment on Dernier for 20% equity
180,000 x 20% = 36,000 proportional participation on Income
60,000 x 20% = (12,000) proportional payment of dividends
Net equity 724,000
under equity method we increase/decrease the percentage of the net income/loss As we participate in the desition making process to arrive it.
We decrease the cash payment as we are paying ourselve As we decide or have influence on the declaration adn distribution of the dividends
Gramps purchased a joint survivor annuity that pays $700 monthly over his remaining life and that of his wife, Gram. Gramps is 70 years old and Gram is 65 years old. Gramps paid $145,530 for the contract. How much income will Gramps recognize on the first payment?
Answer:
$54.95 interest income
Explanation:
We look int othe legal tables to recognize income in this type of annuities considering the age of each participant
Table VI - Ordinary Joint Life and Last Survivor Annuities; Two Lives - Expected Return Multiples
multiplier at cross 75 / 70 : 18.8
we take the annual income of 700 x 12 = 8,400
and multiply by the 18.8 = 157,920
now we solve for part of capital and interest:
145,530/157,920 = 0.92154 = 92.15%
principal returns are 92.15% while interest the remaining 7.85%
700 x 7.85% interest = $54.95 interest income