Pei's savings account balance is $12,000 today. Pei opened the account exactly 7 years ago with a $10,000 deposit. Pei has made no other deposits or withdrawals. What annual interest rate (compounded annually) has the account earned?

Answers

Answer 1
Answer:

Answer:

2.64%

Explanation:

A = P(1 + r)^n

A = $12,000

P = $10,000

n = 7 years

12,000 = 10,000(1 + r)^7

(1 + r)^7 = 12,000/10,000 = 1.2

(1 + r)^7 = 1.2

1 + r = (1.2)^1/7

I + r = 1.0264

r = 1.0264 - 1 = 0.0264

r = 0.0264 × 100 = 2.64%


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What are the tools of macroeconomic policy?

Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.

Answers

Answer:

The options are

A) as small as possible; all

B) equal; all

C) equal; normal

D) maximized; all

The answer is B) equal; all

Ricky not being in a consumer equilibrium and he considering the prices prices of goods means he allocated all his income in such a way that entails his marginal utility per dollar spent is equal for all goods.

This is to ensure that he cuts cost and maximizes his spending power.

Supply has the potential to contribute to: ___________a. Cost management, profitability, return on assets, competitive position and corporate social policy. b. Cost management, profitability, return on assets and competitive position. c. Cost management, profitability and return on assets. d. Cost management and profitability. e. Cost management.

Answers

Answer: Cost management, profitability, return on assets, competitive position and corporate social policy

Explanation:

Supply has the potential to contribute to cost management, profitability, return on assets, competitive position and corporate social policy.

Supply is defined as the amount of goods or services that a supplier is willing to offer for sale at a particular price and at a certain period. The amount of goods offered can determine the revenue generated and hence the profit made.

On December 28, 2021, Videotech Corporation (VTC) purchased 15 units of a new satellite uplink system from Tristar Communications for $26,000 each. The terms of each sale were 1/10, n/30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2022. Prepare the necessary journal entries assuming that VTC uses the net method to account for purchase discounts.

Answers

Answer:

Explanation:

The adjusting entries are shown below:

1. Inventory A/c Dr $386,100

                  To Accounts payable $386,100

(Being the purchase of inventory is made on credit and discount basis)

2. Accounts payable $386,100

                             To Cash A/c $386,100

(Being the amount is paid for cash)

The computation of inventory after applying the discount is shown below:

= Number of units purchased × price of each satellite uplink system × (100 - discount rate)

= 15 units × $26,000 × (100 - 1%)

= $386,100

Final answer:

VTC's purchase total was $390,000. They received a discount of $3,900 and paid a net amount of $386,100 on January 6, 2022. The inventory and payable accounts were debited and credited respectively on the purchase date, followed by clearing the payable account and crediting the cash account on the payment date.

Explanation:

The first step is to calculate the purchase cost of the satellites. The purchase total is 15 units at $26,000 each, which equals $390,000.

Next, compute the discount amount. The terms 1/10, and n/30 mean that if VTC pays the invoice within 10 days, they receive a 1% discount. Therefore, calculate 1% of $390,000 which is $3,900.

On January 6, 2022, VTC paid the net-of-discount amount. So, subtract the discount from the total to find out how much was paid. That means $390,000 - $3,900 = $386,100.

Now, let's prepare the necessary journal entries. On the purchase date, December 28, 2021:

  • Debit Inventory $386,100
  • Credit Accounts Payable $386,100

On the payment date, January 6, 2022:

  • Debit Accounts Payable $386,100
  • Credit Cash $386,100

In this scenario, there's no need for an entry to account for Purchase Discounts as the amounts were already accounted for under the net method.

Learn more about the Net Method of Accounting for Purchase Discounts here:

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The current exchange rate of dollars to euros is $18/€11.The risk free rate for dollars is r = 3%. The risk free rate for euros is re = 4%. The dollar denominated price of an option to purchase €22 for $32 in six months is $5.09. Determine the euro denominated price of a put option to sell $22 in six months using the given strike. (Hint: the strike comes from the statement €22 for $32.)

Answers

Answer:

wow simple

Explanation:

so simple

just a little tricky

To decrease the money supply, the Federal Reserve could a. decrease the required reserve ratio. b. conduct an open market purchase of U.S. Treasury securities. c. increase the discount rate. d. forbid the reselling of U.S. Treasury securities.

Answers

Answer: c. increase the discount rate.

Explanation:

The discount rate of a country is the rate at which the central bank in that country loans money out to the financial institutions.

When this rate is low, more financial institutions will borrow money as opposed to when it is high. Banks borrowing money increases the money supply in the economy so if the Federal Reserve wants to reduce money supply, it should increase the discount rate which would dissuade banks from borrowing from the Fed thereby limiting money supply.

Corporation W, which uses the accrual method of accounting, had earnings and profits of $95,000 on December 31, Year 1. Based on the following information, compute earnings and profits as of December 31, Year 2: Taxable income per return $185,000
Contributions in excess of 10% limitation 1,500
Interest paid for tax-exempt bonds 1,000
Tax-exempt interest received 3,000
Federal income taxes 55,400
MACRS depreciation in excess of straight-line alternative depreciation system 1,500

a. $226,600
b. 220,600
c. $282,000
d. $228,600

Answers

Answer:

a. $226,600

Explanation:

Profit = $ (95000+185000-1500

- 1,000 + 3,000 - 55,400 + 1,500 )= $226000

items added back to profit are allowed deductions while items deducted are disallowed deductions

Depreciation was added back to profit because method used was in excess of straight line method and so does not reflect true depreciation

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