Answer and Explanation:
a, The computation is shown below:
Computation of labor variances:
Total Labor variance = Standard Labor cost - Actual Labor cost
= {(2000 × 1.90 × $17.40) - (4000 × $17.70)
= $66,120 - $70,800
= $4,680 Unfavorable
Labor price variance = (Standard price - actual price) × actual labor hours
= ($17.40 - $17.70) × 4,000
= $1,200 Unfavorable
And,
Labor quantity variance = (Standard hours - actual hours) × standard rate per hour
= {(2,000 × 1.90) - 4,000) × $17.40
= $3,480 Unfavorable
As the Consumer Price Index increases, the value of money a. falls, so people hold less money to buy the goods and services they want. b. falls, so people hold more money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.
Answer:
D. falls, so people hold more money to buy the goods and services they want.
Explanation:
In the case when the consumer price index rises, so the value of the money declines as the people would hold more money in order to purchase the goods and services what actually they want
Also it shows an inverse relationship between the consumer price index and the value of money i.e. if one thing is increased the other thing would decrease and vice versa
Therefore the option d is correct
Noah Yobs, who has $62,000 of AGI before considering rental activities, has $70,000 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $33,000 of income. He has other passive activity income of $20,000. What is Noah's adjusted gross income for the current year
Answer: $45,000
Explanation:
Noah is allowed to offset his real estate rental losses from real estate income and passive income.
This means that the loss reduces to:
= -70,000 + 33,000 + 20,000
= -$17,000
Noah's adjusted gross income for the year is:
= AGI + Income from rental activities
= 62,000 - 17,000
= $45,000
Noah's adjusted gross income for the current year is $45,000.
The passive activity income = $20000
The loss from the real estate = $70000
The income from the real rental estate = $33000
The Net loss = $70000-$33000
= $37000
The Net loss from passive activity = $20000 - $37000
= -$17000
Then Noah's adjusted basis
= $62000-$17000
= $45000
Therefore the adjusted gross income for the current year that Noah has is $45000
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Which career is likely to earn the highest salary
These are the professions that receive high salaries in our country, in Turkey.
3. Why do you think people have so many problems making choices?
Answer: Most of the time it can be due to lack of sincerity and they don’t really know if that choice Will affect them in a way they might not like. It doesn’t always necessarily mean they have many problems making choices, but it can be that they have too much to risk to they take their time in picking a choice. It’s better to let the person have time so that way they don’t feel rushed, because at the end of the day the choice they choose will affect them in either a good way or in a bad way.
A series of 10 end-of-year deposits is made that begins with $5,000 at the end of year 1 and decreases at the rate of $300 per year with 12% interest.
a) What amount could be withdrawn at t = 10? $
Round entry to the nearest dollar. Tolerance is ±4.
b) What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10? $
Round entry to the nearest dollar. Tolerance is ±4.
Answer:
a) The amount that could be withdrawn at t = 10 is $68,872.
b) The uniform annual series of deposits is $3,925.
Explanation:
a) What amount could be withdrawn at t = 10? $ Round entry to the nearest dollar. Tolerance is ±4.
Note: See the attached excel for the calculation of the future value in year 10.
From the attached excel file, we have:
Future value in year 10 = $68,872
Therefore, the amount that could be withdrawn at t = 10 is $68,872.
b) What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10? $ Round entry to the nearest dollar. Tolerance is ±4.
To calculate the uniform annual series of deposits, we use the formula for calculating the future value of ordinary annuity for as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value of the amount deposited in after 10 years = $68,872
M = Uniform annual series of deposits = ?
r = Interest rate = 12%, or 0.12
n = number of year = 10 years
Substituting the values into equation (1) and solve for M , we have:
$68,872 = M * (((1 + 0.12)^10 - 1) / 0.12)
$68,872 = M * 17.5487350695351
M = $68,872 / 17.5487350695351
M = $3,925
Therefore, the uniform annual series of deposits is $3,925.
You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years
Answer:
$680
Explanation:
The computation of the dollars in withdrawals per month that decrease this nest egg to zero in 20 years is shown below;
As we can see in the attached image that the $100,000 would be in the retirement fund so in 20 years, the withdrawals per month is $680 that decrease the nest egg to zero
Therefore the same would be considered
Which situation best describes an oligopoly?
A. A city government selects one company to provide clean water for
its residents.
B. A large oil company buys all of its competitors and shuts them
down permanently.
C. A group of vendors compete to sell the same drinks to fans at a
baseball game.
D. A few large airlines work together to set high prices and eliminate
new competitors.
ring its first five years of operations, Della Manufacturing reports net income and pays dividends as follows. Year Net Income Dividends 1 $ 2,000 $ 1,700 2 2,600 1,600 3 2,600 2,200 4 5,900 2,900 5 8,800 3,100 Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.
Answer: See explanation
Explanation:
The retained earnings will be calculated as:
= Begining retainers earnings + Net income - Dividend.
Year 1:
Retained earning = 0 + 2000 - 1700
= 300.
Year 2:
Retained earning = 300 + 2600 - 1600
= 1300
Year 3:
Retained earning = 1300 + 2600 - 2200
= 1700
Year 4:
Retained earning = 1700 + 5900 - 2900
= 4700
Year 5:
Retained earning = 4700 + 8800 - 3100
= 10400
Sheridan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2160 shares of Ayayai Company (10%) for $55080 cash. June 1 Received cash dividends of $2 per share on Ayayai stock. Oct. 1 Sold 1170 shares of Ayayai stock for $31590. The entry to record the purchase of the Ayayai stock would include a debit to Stock Investments for $49572. debit to Investment Expense for $5508. debit to Stock Investments for $55080. credit to Cash for $49572.
Answer: debit to Stock Investments for $55,080.
Explanation:
As this is an investment in another company, it will count as an asset which means that when it increases, the account will have to be debited. It will therefore be debited for $55,080 to show the investment.
Cash will decrease by the same amount which means that it will have to be credited because assets are credited when they decrease.
Dr Stock Investments $55,080
Cr Cash $55,080
You are long 30 gold futures contracts, established at an initial settle price of $1,542 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,531, $1,527, $1,537, and $1,547, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. For days in which a deposit is necessary, give the margin balance after the required deposit
Answer:
The solutions is given in the attached figure
Explanation:
The values are calculated using the appropriate formulas in Excel. The formulas are as indicated in the attached figure.
Donkey Inc. has a fleet of 10 large trucks that cost a total of $1,410,000. The fleet is expected to be driven a total of 1,000,000 miles during its estimated 10-year life and be sold for $141,000 at the end of its useful life. If the fleet was driven 125,000 miles during the current year, what is the amount of depreciation that would be calculated using the straight-line and units-of-production methods, respectively
Answer:
$126,900
$125,000
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
( $1,410,000 - $141,000) / 10 = $126900
Activity method based on activity = (miles that year / total miles expected to be driven) x (Cost of asset - Salvage value)
( $1,410,000 - $141,000) x ( 125,000 / 1,000,000) = 125,000
Peter Pundit has been hired by a (rather biased) news outlet to provide a cost benefit analysis of proposed nuclear power plant that refutes an earlier one done by environmentalists. The environmentalists’ analysis shows that the long term cleanup costs outweigh the short term benefits. In trying to counter the environmentalist’s report, Pundit would most likely…
Answer:
Use a higher discount rate and assume that cleanup would occur later.
Explanation:
When you are evaluating cash flows, the higher the discount rate, the lower the present value. Also, if the discount rate occurs farther away into the future, its present value will be lower. For example, a cash flow that occurs in 10 years will have a lower present value than a cash flow that occurs in 5 years.
The normal distribution is an appropriate model of: A. system reliability where components are connected in parallel. B. the full cost view of maintenance. C. the high initial failure rates of product, machine, or processes. D. the MTBF distribution of products, machines, or processes that have "settled in." E. system reliability where components are connected in series.
Answer:
The correct answer is the option D: the MTBF distribution of products, machines, or processes that have "settled in".
Explanation:
To begin with, the term of "normal distribution" refers to statistic model used in the field of probabilities and the most common characteristics are that they have a standard deviation of 1 and are all symmetrical. In the proper graphic the form of a normal distribution will be the one of a curve bell. Therefore that it is regularly seen in as an appropiate model of MTBF distribution regarding maintenance of products, machines or processes. Moreover, this distribution also known as Gaussian is motivated by the Central Limit Theorem.
Chris Co. produces sports equipment and is currently producing 1,000 mini long boards annually. A supplier has offered to produce the boards for Chris Co. for $300 per board. Chris Co. incurs unit-level costs of $280 per unit. Chris also spends $25,000 on product design each year and incurs $50,000 of facility-level costs. The avoidable production cost for Chris to produce one mini long board is
Answer: $305
Explanation:
The avoidable production cost for Chris to produce one mini long board goes thus:
Unit Level Cost = $280
Add: Product Level Cost = $25,000 / 1000 units = $25
Then, the avoidable cost to produce one unit will be:
= $280 + $25
= $305
Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cozy. Labor costs will go from $1.76 to $2.26 per unit. Assume all period and variable costs as reported on Chester's Income Statement remain the same. If Chester were to pass on half the new labor costs to their customers, how many units of product Cozy would need to be sold next round to break even on the product
Answer:
See below
Explanation:
The above is an incomplete question. The concluding parts are assuming the following;
Selling price per unit = $54
Current total variable cost = $24.50
Total fixed cost = $69,000
New variable cost will increase by ($2.26 - $1.76)/2 = $0.25
New variable cost will be = ($24.50 + $0.25) = $24.75
Contribution margin = ($54 - $24.75) = $29.25
New fixed cost = ($0.25 × 2,339) + $69,000 = $69,585
Note:
Old break even units = $69,000/$29.5 = 2,335 units
Therefore,
New break even units
= Fixed cost/Contribution margin per unit
= $69,585/$29.5
= 2,397 units
Cozy would have to sell 2,397 units as opposed to 2,335 units in order to break even.
Determine if there was a percent increase or decrease in the number of trench coats sold, and by how much. (Round your answer to the nearest tenth.)
a.
The percentage of trench coats sold decreased by 0.8%.
b.
The percentage of trench coats sold increased by 0.8%.
c.
The percentage of trench coats sold decreased by 23.3%.
d.
The percentage of trench coats sold increased by 23.3%.
Answer:
D. increase of 23.3%, right on edge
Explanation:
to find the percentage increase, first you need to substract the final from the initial, then divide the difference by the initial, then multiply your answer by 100 to get the percentage
in this case, the final is 127, and the initial is 103
127 - 103 = 24
24 ÷ 103 = 0.233
0.233 x 100 = 23.3%
Answer:
✅ D. The percentage of trench coats sold increased by 23.3%.On November 1 of the current year, Rob Elliot invested $30,000.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $55,650.00 and total stockholders' equity of $38,000.00.
Cash Supplies Land Accounts Payable Common Stock Retained Earnings Dividends Fees Earned Wages Expense Rent Expense Supplies Expense Utilities Expense Miscellaneous Expense
? $8,600.00 $16,500.00 ? ? $5,000.00 $5,750.00 $26,750.00 $6,400.00 ? $4,650.00 $1,265.00 $460.00
Review the following questions. Indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement. (Select "Yes" or "No")
Balance Sheet Income Statement Retained Earnings Statement Amount
1. What is the amount reported for total liabilities and stockholders' equity on December 31? $
2. What is the retained earnings amount reported on December 31? $
3. How much does GGE Enterprises Inc. owe to its creditors? $
4. How much cash is being held by GGE Enterprises Inc.? $
5. By what amount did retained earnings increase or decrease during the period? $
6. What is the amount of profit or loss during December? $
7. What were the total expenses for December? $
8. How much was paid for rent? $
Answer:
GGE Enterprises Inc.
1a. The amount reported for total liabilities is:
= $17,650
1b. The amount reported for stockholders' equity is:
= $38,000
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
Explanation:
a) Data and Calculations:
Total assets = $55,650
Total stockholders' equity = $38,000
Total liabilities = $17,650 ($55,650 - $38,000)
Account Titles Debit Credit
Cash $30,550.00
Supplies 8,600.00
Land 16,500.00
Accounts Payable $17,650.00
Common Stock 30,000.00
Retained Earnings 5,000.00
Dividends 5,750.00
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00
Total $79,400.00 $79,400.00
Cash = $30,550 (Total assets - Supplies - Land)
Rent expense =$5,225 ($79,400 - $74,175
Common stock = $30,000
Accounts payable = Total assets - Owners' equity
= $17,650 ($55,650 - $38,000)
Net income:
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00 18,000.00
Net income $8,750.00
Dividends (5,750.00)
Retained earnings, November 30 5,000.00
Retained earnings, December 31 $8,000.00
1a. The amount reported for total liabilities is:
= $17,650 ($55,650 - $38,000)
1b. The amount reported for stockholders' equity is:
= $38,000 ($30,000 + $8,000)
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
Over the past 4 years an investment returned 0.1 -0.12 -0.08 and 0.13, what is the standard deviation of returns?
a. 8.96 percent.
b. 16.05 percent.
c. 17.92 percent.
d. 18.09 percent.
e. 20.03 percent.
Answer:
The answer is below
Explanation:
Standard Deviation is a measure used to represent the volatility or risk in an instrument. The higher the SD, the higher will be the fluctuations in the returns and vice versa Given that:
the past 4 years an investment returned 0.1 -0.12 -0.08 and 0.13
[tex]Arithmetic\ mean=\frac{\Sigma x_i}{n}= \frac{0.1+(-0.12)+(-0.08)+0.13}{4} =0.0075[/tex]
The standard deviation (σ) is:
[tex]\sigma=\sqrt{ \frac{\Sigma(x_i-mean)2}{n-1} }=\sqrt{\frac{(0.1-0.0075)^2+(-0.12-0.0075)^2+(-0.08-0.0075)^2+(0.13-0.0075)^2}{3} } \\\\\sigma=12.58\%[/tex]
Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, $19 par value, 12,900 shares authorized. During the year, the following selected transactions were completed: a. Sold 7,000 shares of common stock for cash at $38 per share. b. Sold 2,600 shares of common stock for cash at $43 per share. c. At year-end, the accounts reflected income of $7,200. No dividends were declared.
Solution :
Tarrant Corporations
First of all let us prepare the Journal Entries
1. Cash (7000 x 38) 266,000
Common stock (7000 x 19) 133,000
Paid in capital in excess of stated value
common stock (7000 x 19) 133,000
2. Cash (2600 x 43) 111,800
common stock (2600 x 19) 49400
Paid in capital in excess of stated value
Common stock (2600 x 24) 62400
3. Income summary 7000
Retained earing 7000
Tarrant corporation
Balance sheet - shareholder's section
Share holder's equity
Contributed capital
$ 19 par, issued and outstanding 9600 shares = 182400
Paid in capital in excess of par 196800
Total contributed capital 379200
Retained earnings 7200
Total shareholder's equity 372,000
THESE ARE TRUE OR FALSE!! PLEASE HELP!!
1. A goal in life that is fulfilled through a job is called an occupation.
2. The process of studying careers, assessing yourself, and making decisions about the future
is called career planning.
3. Career planning begins when you make decisions about your interests and the occupation
you want to have someday.
4. Studying careers is continuous because new career opportunities come along regularly.
5. School libraries should be avoided in career planning.
6. Newspaper help wanted ads are interesting but of little value in career planning.
7. In career planning, you should contact both government employment offices and private
employment agencies.
8. Career information interviews can be done naturally without any advance preparation.
9. The willingness and ability of workers to move where jobs are available is called mobility.
10. A natural, in-born aptitude to do certain things is an ability.
Baker Company, an Ohio company that sells a branded product regionally to retail customers in Midwest. It normally sells its product for $40 per unit; however, it has received a one-time offer from a private-brand company on the West Coast to buy 1,000 units at $25 per unit. Even though the company has excess capacity to produce the units, the president of the company immediately rejected the offer; however, the chief accountant stated that it might be a profitable opportunity for the company, even though $25 is below its unit cost of $28, calculated as follows:
Cost
Direct material $12.00
Direct labor 8.00
Depreciation and other fixed costs 6.00
Total unit cost $26.00
Calculate the net advantage (disadvantage) of accepting the special order:
a. $5,000
b. ($5,000)
c. $25,000
d. ($25,000)
Answer:
Effect on income= $5,000 increase
Explanation:
Giving the following information:
One-time offer:
1,000 units at $25 per unit.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Unitary cost= 12 + 8= $20
Effect on income= 1,000*(25 - 20)
Effect on income= $5,000 increase
A company budgeted unit sales of 204,000 units for January, 2020 and 240,000 units for February 2020. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2019, how many units should be produced in January, 2020 in order for the company to meet its goals
Answer:
the number of units to be produced is 214,800 units
Explanation:
The computation of the number of units to be produced is given below;
= Budgeted units sales + required ending inventory - opening inventory
= 204,000 units + (240,000 units × 30%) - 61,200 units
= 204,000 units + 72,000 units - 61,200 units
= 214,800 units
Hence, the number of units to be produced is 214,800 units
We simply applied the above formula so that the correct units could come
Kingbird Company sells 290 units of its products for $18 each to Logan Inc. for cash. Kingbird allows Logan to return any unused product within 30 days and receive a full refund. The cost of each product is $11. To determine the transaction price, Kingbird decides that the approach that is most predictive of the amount of consideration to which it will be entitled is the probability-weighted amount. Using the probability-weighted amount, Kingbird estimates that (1) 10 products will be returned and (2) the returned products are expected to be resold at a profit.
Required:
a. Indicate the amount of Net sales.
b. Indicate the amount of estimated liability for refunds.
Answer:
Kingbird Company
a. The amount of Net Sales = $5,040.
b. The amount of the estimated liability for refunds = $180
Explanation:
a) Data and Calculations:
Units of products sold to Logan Inc. = 290
Selling price = $18
Sales revenue = $5,220 ($18 * 290)
Cost of each unit = $11
Expected returns = 10/290 = 0.03448
Net sales = $5,220 * (1 - 0.03448)
= $5,040
Estimated liability for refunds = $180 ($5,220 - $5,040)
Current Attempt in Progress Sheridan Company's accounting records reflect the following inventories: Dec. 31, 2020 Dec. 31, 2019 Raw materials inventory $310000 $260000 Work in process inventory 300000 160000 Finished goods inventory 190000 150000 During 2020, $1080000 of raw materials were purchased, direct labor costs amounted to $684700, and manufacturing overhead incurred was $848000. If Sheridan Company's cost of goods manufactured for 2020 amounted to $2422700, its cost of goods sold for the year is
Answer:
$2,282,700
Explanation:
Calculation to determine the cost of goods sold for the year
Using this formula
Cost of good sold=Cost of goods manufactured for 2020-(Dec. 31, 2019 Work in process inventory-Dec. 31, 2020Work in process inventory)
Let Plug in the formula
Cost of good sold=$2,422,700- ($160,000-$300,000)
Cost of good sold=$2,422,700- $140,000
Cost of good sold=$2,282,700
Therefore the cost of goods sold for the year is $2,282,700
A1 Corp. uses the FIFO method for its process costing calculations. Beginning inventory in the mixing processing center consisted of 5,000 units, 65% complete with respect to conversion costs. Ending work in process inventory consisted of 4,000 units, 50% complete with respect to conversion costs. If 19,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:
Answer:
17,750 units
Explanation:
Calculation of equivalent units for conversion costs - FIFO
To finish Opening Work in Process (5,000 units x 35%) 1,750
Started and Completed [(19,000 units - 5,000 units) x 100%] 14,000
Ending Work in Process (4,000 units x 50%) 2,000
Equivalent units of production 17,750
therefore,
the equivalent units for conversion costs would be 17,750 units
Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities.
Required:
Write the necessary adjusting entry.
Answer:
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
Explanation:
Preparation of the journal entry to record the necessary adjusting entry
Based on the information given the journal entry to record the necessary adjusting entry will be:
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
($6,000 - $5,000)
One reason why "protecting domestic jobs" is a poor argument against free trade is because A. there is little evidence that trade protection saves domestic jobs. B. the cost of protecting jobs is much higher than the value of the jobs. C. labor in other countries is not priced lower than U.S. labor. D. any outsourcing of jobs from the U.S. is completely offset by outsourcing of jobs from other countries.
Answer: Cost of protecting jobs is much higher than the value of the jobs.
Explanation:
Protectionism is when the local industries in a country are protected against foreign competition in order to help them grow.
One of the main ideas behind free trade is for the consumers to be provided with affordable and low prices goods when there's a free movement of goods between the countries.
It should be noted that an increase in the labour cost will also.bring about an increase in the value of jobs and this can result to the goods being sold at a higher price. Therefore the correct option is B "cost of protecting jobs is much higher than the value of the jobs".
Answer:
A
Explanation:
Calculate the annual cash flows of a $2 million, 10-year fixed-payment deferred annuity earning a guaranteed 8 percent per year if annual payments are to begin at the end of the sixth (6th) year.
Answer:
$437,946.42
Explanation:
Present Value of Deferred Annuity = $2,000,000
Value at the end of Year 5 = $2,000,000*(1.08)^5
Value at the end of Year 5 = $2,938,656.15
Calculation of Annual Payment from Annuity using the TVM
Annual payment = PMT [PV, FV, N, I]
Annual payment = PMT [2,938,656.15, 0, 10, 0.08]
Annual payment = $437,946.42
So, the Annual Payment from annuity is $437,946.42.
Which one of the following bank accounts will you choose for a savings account? Bank A: An account that pays 8% nominal interest (APR) with daily (365-day) compounding. Bank B: An account that pays 8% nominal interest (APR) with annual compounding. Bank C: An account that pays 7% nominal interest (APR) with daily (365-day) compounding. Bank D: An account that pays 7% nominal interest (APR) with monthly compounding.
Answer:
bank a
Explanation:
to determine the appropriate bank to choose for a savings account, we have to calculate the effective annual interest rate. the bank with the highest effective annual interest rate would be chosen
Effective annual rate = (1 + APR / m ) ^m - 1
M = number of compounding
Bank A = [ 1 + (0.08/365)^365 - 1 = 8.32%
Bank B = 8%
Bank C = [ 1 + (0.07/365)^365 - 1 = 7.25%
Bank D = [ 1 + (0.07/12)^365 - 1 =7.23%
Bank A has the highest effective annual rate and would be chosen
For a given product demand, the time-series trend equation is 53 - 4 x. The negative sign on the slope of the equation:
a. is a mathematical impossibility.
b. is an indication that the forecast is biased, with forecast values lower than actual values.
c. is an indication that product demand is declining.
d. implies that the coefficient of determination will also be negative.
e. implies that the cumulative error will be negative.
Answer: is an indication that product demand is declining.
Explanation:
The negative sign on the slope of the time-series trend equation simply explains that the product demand is declining.
A negative slope indicates that two variables are negatively related which implies that when the value of x increases, rhen the value of y decreases, and vice versa. When putting this in a graph, the line falls when the line that's on the line graph shifts from left to right.
The correct option is C