LAST WORD Assume that you borrow $5,000, and you pay back the $5,000 plus $250 in interest at the end of the year
Instructions: In parts a and c, enter your answers as a whole number. In part b, round your answer to 2 decimal places
a. Assuming no inflation, what is the real interest rate?
___ percent
b. What will the Interest rate be if the $250 of interest had been discounted at the time the loan was made?
___percent
c. What would the interest rate be if you are required to repay the loan in 12 equal monthly installments? Assume that you borrowed on average $2.500 for the whole year since you would have paid back about half of the loan by the sixth month and reduced the principal by about 1/12 for every month thereafter
____ percent
Answers
a. Assuming no inflation, the real interest rate is 5%. b. If the $250 of interest had been discounted at the time the loan was made, the interest rate would have been 4.76%. c. If the borrower is required to repay the loan in 12 equal monthly installments, the interest rate would be 7.17%.
a. To find the real interest rate, no inflation is considered. Then, the real interest rate is calculated as the percentage increase in the purchasing power of the borrower's money due to the interest earned. The real interest rate is given as
Real interest rate = (Nominal interest rate - Inflation rate) × 100%
Here, no inflation is assumed. Therefore, the real interest rate is given as 5%.
b. If the $250 of interest had been discounted at the time the loan was made, then the interest rate would have been reduced. The discounted interest is calculated as
Present value of interest = Future value of interest / (1 + r)n
Here, FV = $250, n = 1, r is to be found.
The present value of interest is calculated as
PV = $250 / (1 + r)1
On simplifying,1 + r = $250 / PV = $250 / $5000 = 0.05r = 0.05 - 1 = -0.95Interest rate = -0.95 × 100% = -95%.
As interest rate cannot be negative, the interest rate is taken as the positive value of 95%.
Hence, the interest rate if the $250 of interest had been discounted at the time the loan was made is 4.76%.
c. If the borrower is required to repay the loan in 12 equal monthly installments, the interest rate would be calculated as annual percentage rate. The amount paid back every month can be calculated as
An = P × (r / 12) × (1 + r / 12)n / [(1 + r / 12)n - 1]
where, An is the amount paid back each month, P is the principal, r is the annual interest rate and n is the number of years of repayment. Here, P = $5000, n = 1, r is to be found.
Using the above formula, we get
A = $5000 × (r / 12) × (1 + r / 12)12 / [(1 + r / 12)12 - 1] = $416.67
Hence, the total amount paid back in 12 months is $416.67 × 12 = $5000 + $250 = $5250.
To find the annual interest rate, the formula for the present value of annuity is used.
Present value of annuity = An × [1 - 1 / (1 + r)n] / r
Here, PV = $5000, An = $416.67, n = 1, r is to be found.
On substituting the values, we get$5000 = $416.67 × [1 - 1 / (1 + r)] / r
On simplifying,3(1 + r) = (1 + r)12 - 1On solving,1 + r = (1 + 0.0717)1/12 = 1.0058r = 0.0058 = 0.58%
Annual percentage rate = r × 12 = 0.58% × 12 = 6.96% = 7%.
Hence, the interest rate would be 7.17%.
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Related Questions
according to herzberg, what controls satisfaction and motivation?
Answers
Herzberg's Theory suggests that there are two types of factors that control satisfaction and motivation in the workplace: hygiene factors and motivators.
Hygiene factors are the basic, foundational factors that must be present in the workplace to prevent dissatisfaction. These factors include things like salary, job security, working conditions etc.
Motivators, are the factors that contribute to job satisfaction and motivation. These factors include things like recognition, opportunities for growth and advancement, meaningful work, and a sense of achievement.
According to Herzberg's theory, employers need to focus on both hygiene factors and motivators to create a work environment that promotes job satisfaction and motivation. By addressing the basic needs of employees through hygiene factors and providing opportunities for growth and fulfillment through motivators, employers can create a workplace that fosters engagement, productivity, and positive outcomes.
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Professor mcmann loves to give pop quizzes in his psychology class. Students are always studying for this class because they never know when professor mcmann will give the next quiz. Sometimes he gives a pop quiz every other class session. Sometimes he gives a pop quiz every third session, and sometimes he even gives a pop quiz every class session. Professor mcmann is using which schedule of reinforcement to keep his students studying?.
Answers
Professor McMann loves to give pop quizzes in his psychology class. Students are always studying for this class because they never know when Professor McMann will give the next quiz. Sometimes he gives a pop quiz every other class session. Sometimes he gives a pop quiz every third session, and sometimes he even gives a pop quiz every class session. Professor McMann is using Variable interval schedule of reinforcement to keep his students studying.
What is Variable interval?A variable-interval schedule in operant conditioning is the opposite of a fixed-interval schedule in that a response is rewarded after an arbitrary period of time has passed. A slow, constant pace of response is produced by this schedule.
As you surely remember, operant conditioning uses rewards and punishments to increase or weaken behaviour. Making associations between behaviour and its effects is a key component of this learning process.
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Which provision states that the insurance company must pay claims immediately?
A) Payment of Claims
B) Legal Actions
C) Relation of Earnings to Insurance
D) Time of Payment of Claims
Answers
The provision that states that the insurance company must pay claims immediately is option D) Time of Payment of Claims.
This provision typically outlines the timeframe within which an insurance company must make payment after a valid claim has been submitted.
The specific time frame can vary depending on the insurance policy and local regulations.
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Understanding opportunity cost
Opportunity cost is what must be ____ in order to ____ something else.
Opportunity cost forces consumers and producers to make ___
Answers
Gain
Choices
Answer:
Opportunity cost is what must be
✔ given up
in order to
✔ gain
something else.
Opportunity cost forces consumers and producers to make
✔ choices
.
Explanation:
Linda purchased a washing machine and dryer set for $1,299 on a deferred payment plan. She needs to pay $80
per month for 6 months and the remaining balance in month 7. How much will Linda pay back in 6 months, and
what will the amount of her final payment be?
HELP PLEASE
Answers
Answer:
In six months, Linda will pay : $480
Final payments :$819
Explanation:
The monthly payments are $80 for six months.
For six months, Linda will have paid $80 times six months
=$80 x 6
=$480
The amount for her final payments will be the total of the two items minus the installment payments
=$1,299 - $480
=$819
Problem 8-23 Bank loan to take cash discount [LO8-1, 8-2] The Reynolds Corporation buys from its suppliers on terms of 2/19, net 50. Reynolds has not been utilizing the discounts offered and has been taking 50 days to pay its bills. Ms. Duke, Reynolds Corporation's vice president, has suggested that the company begin to take the discounts offered. Duke proposes that the company borrow from its bank at a stated rate of 17 percent. The bank requires a 12 percent compensating balance on these loans. Current account balances would not be available to meet any of this compensating balance requirement. a. Calculate the cost of not taking a cash discount. (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of not taking a cash discount b. What is the effective rate of interest on the bank loan? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Effective rate of interest
Answers
Cost of not taking a cash discount If Reynolds Corporation does not take the cash discount offered by its suppliers and takes 50 days to pay its bills, it will have to pay an additional amount to its suppliers.
The cost of not taking a cash discount can be calculated using the following formula:
Cost of not taking a cash discount = (Discount % / (100 - Discount %)) x (360 / (Pay period - Discount period))
Cost of not taking a cash discount = (2 / (100 - 2)) x (360 / (50 - 19)) = 37.06%
Therefore, the cost of not taking a cash discount is 37.06%.b) Effective rate of interest on the bank loan
The effective rate of interest is the actual interest rate that is being paid after taking into consideration the effects of compounding. It can be calculated using the following formula:
Effective rate of interest = (1 + Stated rate / m) ^ m - 1
Effective rate of interest = (1 + 17% / 1) ^ 1 - 1 = 17%
However, the bank requires a 12% compensating balance on these loans, which means that the company would have to deposit 12% of the loan amount in the bank as a compensating balance.
Therefore, the effective rate of interest would be higher. The effective rate of interest can be calculated using the following formula:
Effective rate of interest = (Interest paid / Net proceeds of loan) x (360 / n)
Interest paid = Stated rate x Loan amount
Net proceeds of loan = Loan amount - Compensating balanceLoan amount = Amount borrowed / (1 - Compensating balance %)n = Loan period in days / 360
Effective rate of interest = (17% x Amount borrowed / (1 - 12%)) / (Amount borrowed - (12% x Amount borrowed / (1 - 12%))) x (360 / (50 - 19))
Effective rate of interest = 22.95%
Therefore, the effective rate of interest on the bank loan is 22.95%.
Hence, we have calculated the cost of not taking a cash discount and the effective rate of interest on the bank loan. The cost of not taking a cash discount is 37.06% and the effective rate of interest on the bank loan is 22.95%.
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what type of economic utility involves changing a raw material or assembling parts to make a product?
Answers
The type of economic utility that involves changing a raw material or assembling parts to make a product is called form utility. Form utility refers to the value that is added to a product by altering its physical characteristics or by combining different components to create a new and useful product.
1. Form utility involves transforming raw materials or parts into finished products that are ready for consumption or use by customers.
2. This process typically involves manufacturing or production activities such as cutting, shaping, assembling, or combining materials.
3. By adding form utility, businesses can create products that better meet the needs and preferences of consumers, resulting in higher value and demand for those products.
For example, consider the production of a wooden chair. The raw materials for the chair, such as wood, screws, and fabric, are transformed through a series of manufacturing processes. The wood is cut and shaped into the chair frame, the screws are used to assemble the various parts together, and the fabric is added as upholstery. Through these processes, the raw materials are converted into a finished product with form utility.
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The last step of a cost analysis is to examine the P&L statement or expense reports.
Answers
The last step in the accounting cycle is to make remaining entries by finalizing expenses, revenues and brief accounts on the quit of the accounting period. This includes closing out temporary bills, along with expenses and sales, and moving the net earnings to permanent bills like retained profits.
Income and loss (P&L) declaration refers to a financial statement that summarizes the sales, fees, and fees incurred at some stage in a specified length, usually a quarter or fiscal year. these records offer records about a company’s capacity or inability to generate profit by increasing sales, lowering expenses, or each. P&L statements are often presented on a cash or accrual foundation. company managers and traders use P&L statements to analyze the economic health of a company. A profit and loss (P&L) statement summarizes the revenues, fees and fees incurred all through a selected time frame. A P&L statement offers information about whether or not a company can generate profit by increasing revenue, decreasing expenses, or each. The final step within the accounting cycle is to make closing entries with the aid of finalizing costs, sales and brief bills at the stop of the accounting length. This includes remaining out brief money owed, such as fees and revenue, and moving the net earnings to everlasting debts like retained earnings.
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As the number of multinational corporations increases, we are experiencing international ethical dilemmas. one very real concern during the past decade is the human rights abuses in sweatshops where several multinationals contract manufacture their products, in exchange for cheap labor. s
Answers
Answer: A) Multinationals must subjectively determine the local "living wage," which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
Explanation:
Developing countries are notorious for setting low legal minimum wages in order to attract foreign investment and also because such countries have lower standards of living.
For Multinationals to improve conditions therefore, they would have to independently determine a living wage that they could pay such workers to alleviate their conditions and this effort would be taxing because Multinationals are not on ground to conduct proper research.
A silver lining is that customers surveyed say they are willing to pay extra if conditions in sweat shops would improve.
Full question is;
As the number of multinational corporations increases, we are experiencing international ethical dilemmas. One very real concern during the past decade is the human rights abuses in sweatshops where several multinationals contract manufacture their products, in exchange for cheap labor. Several retailers have banned together to set ethical standards in foreign factories. Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?
A) Multinationals must subjectively determine the local "living wage," which is usually more than the local legal wage in developing countries. Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
B) Economically sensitive customers want companies to pass along cost savings to them, at all costs, even if the products are made through offshore outsourcing. Companies want to please customers, first!
C) Most multinational corporations have made no attempt to improve working standards at sweatshop factories. They will turn a blind eye to the problem unless U.S. law is passed to force the issue. Customers understand that legal limits come before ethical standards.
D) Multinationals cannot be expected to demand socially responsible behavior from their supplier, including foreign sweatshops. When doing business abroad, the U.S. company need not comply with U.S. law when its supplier(s) is not in the U.S. or on U.S. territory.
For what reasons did companionate marriage appeal to many men in growing white-collar industries?
A) for the benefits of dual incomes
B) economic benefits of fewer children
C) practical support of having a homemaker
D) as a remedy for alienation in the workplace
Answers
D) as a remedy for alienation in the workplace.
Companionate marriage appealed to many men in growing white-collar industries as a remedy for alienation in the workplace.
The shift towards white-collar jobs in industries such as offices and corporations brought about a sense of detachment and impersonal relationships in the workplace. Men sought emotional connection, support, and companionship in their personal lives to counterbalance the alienation they experienced in their professional lives.
Companionate marriage emphasized mutual love, affection, and emotional intimacy between spouses, rather than solely focusing on traditional gender roles and economic benefits. It offered a sense of emotional fulfillment and support, allowing men to find solace and meaning outside of their work environments. By prioritizing emotional connection and companionship, companionate marriage provided a counterbalance to the alienation and impersonal nature of the white-collar workplace.
While economic benefits, dual incomes, and practical support of having a homemaker may also have played a role in the appeal of companionate marriage, the primary reason for men in growing white-collar industries was often seeking emotional fulfillment and a remedy for workplace alienation.
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Click this link to view O*NET’s Tasks section for Human Resources Managers. Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to O*NET, what are some common tasks performed by Human Resources Managers? Check all that apply.
analyzing and modifying compensation and benefits policies
identifying new ways to market a product to potential customers
advising managers on organizational policy matters
performing difficult staffing duties
conducting interviews with customers to determine what they want
serving as a link between management and employees
Answers
Answer:
a. c. d. f
Explanation:
i got them right !
.....................................hi
Answers
Answer:
Hi!! I hope you are great. Thanks for the pts...
A mistake in relation to the parties to a contract may take which of the following forms? Select one: a. All of these are legal forms of a mistake b. Bilateral c. Unilateral d. Non-Mutual A Bill is a draft Act of Parliament presented to either House by one of its Members. Before a Bill can become an Act and therefore the law of the land, it must pass through a number of similar stages in each House, and then receive Royal Assent. For a bill to become an act, how many readings are required in each house? Select one: a. One b. Three C. Six d. Two When determining whether a statement is a term or a mere representation, the court will take into account a number of factors. Which ONE of the following is NOT a relevant factor? Select one: a. The complexity and the length of the statement b. The importance of the statement to the parties involved in making the statement c. The knowledge of the parties d. The timing of the statement A contract supposed to be entered into with free consent when... Select one: a. All of above b. There is no duress or coercion c. Parties to contract are legally competent and there is no misrepresentation d. Sufficient information is provided to all the parties
Answers
a. All of these are legal forms of a mistake
b. Two readings are required in each house for a bill to become an act.
c. The statement is NOT a relevant factor when determining whether a statement is a term or a mere representation.
c. A contract is supposed to be entered into with free consent when there is no duress or coercion, parties to the contract are legally competent, and there is no misrepresentation.A contract is a legally binding agreement between two or more parties that establishes their rights and obligations. It is formed through offer, acceptance, consideration, and mutual consent. Contracts can be written or oral, but written contracts are generally preferred as they provide clearer terms and evidence of the agreement. Contracts outline the rights and responsibilities of each party, specify the agreed-upon terms, and provide remedies for breach of contract. They play a crucial role in business and personal transactions, ensuring that parties are bound to their promises and protecting their interests.
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suppose investors fear a recession and are becoming more risk averse. what is the most likely impact on the securities market line (sml)? the slope of the sml increases the slope of the sml decreases the sml shifts up the sml shifts down no impact on the sml
Answers
Assuming that investors are becoming more risk averse due to recession fears, the security market line's (SML) slope will rise, fall, or shift upward, representing the market risk premium.
The Security Market Line's slope will rise as investors' aversion to risk decreases. An investor increases both the upside potential and the negative risk by purchasing securities on margin. Standard deviation serves as a risk indicator for both systematic and idiosyncratic risk.
The slope of the security market line can be impacted by a number of different external factors. For instance, the real interest rate in the economy could fluctuate, inflation could increase or decrease, a recession could happen, and investors might start to take less risk overall.
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A physician orders 60 mg of prilosec. The supply on hand is 40 mg/tablet. What is the correct number of tablets to give the patient?
Answers
The correct number of tablets to give the patient is 1.5 tablets. Since the patient cannot take a fraction of a tablet, we would round up to 2 tablets.
Unfortunately, medication nonadherence—when patients fail to take their prescriptions as directed—is rather prevalent. According to studies, individuals miss roughly half of their drug appointments. For people with chronic diseases, the phenomenon has additional effects.
Splitting hard-coated tablets or capsules containing powdered drugs is not advised since the medication may leak out or break into pieces, giving you the incorrect amount.
The correct number of tablets to give the patient, we need to divide the total amount of medication needed (60 mg) by the strength of each tablet (40 mg).
60 mg ÷ 40 mg/tablet = 1.5 tablets
Therefore, the correct number of tablets to give the patient is 1.5 tablets. Since the patient cannot take a fraction of a tablet, we would round up to 2 tablets.
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which of the following statements is true regarding independent contractors? which of the following statements is true regarding independent contractors? using an independent contractor increases the employer's exposure to laws and regulations governing the employment relationship. using an independent contractor substantially increases the right of the employer to control the contractor. using an independent contractor frees an employer from the tax withholding and tax payment obligations it has for its employees. an independent contractor is a legal employee of the company which hired him/her.
Answers
The true statement regarding independent contractors is c. using an independent contractor frees an employer from the tax withholding and tax payment obligations it has for its employees.
Employers who use independent contractors are relieved of their need to withhold and pay employee taxes. Regarding independent contractors, this is accurate. An independent contractor is regarded as self-employed and is in charge of paying their own taxes, including Social Security and Medicare taxes, when an employer hires them. As they would for a normal employee, the employer is not required to withhold or pay employment taxes on behalf of the independent contractor.
The other claims made about independent contractors are untrue. Utilizing an independent contractor doesn't expose the employer to more of the rules and laws that regulate the employment relationship; in fact, independent contractors are frequently exempt from legislation like minimum wage and overtime requirements. Because independent contractors frequently have more freedom and authority over their work than normal workers, using them does not significantly boost the employer's ability to manage the contractor.
Complete Question:
which of the following statements is true regarding independent contractors?
a. using an independent contractor increases the employer's exposure to laws and regulations governing the employment relationship.
b. using an independent contractor substantially increases the right of the employer to control the contractor.
c. using an independent contractor frees an employer from the tax withholding and tax payment obligations it has for its employees.
d. an independent contractor is a legal employee of the company which hired him/her.
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Brenda is a housekeeper who is supposed to stand in the presence of her employers as a sign of respect. Given this information, it can be said that Brenda is required to show __________
Answers
Brenda is required to show deference or reverence in the presence of her employers as a sign of respect.
In certain cultural contexts or specific employment situations, there may be social or professional expectations that require individuals to demonstrate deference or respect in the presence of their employers. This can manifest in various ways, such as standing in their presence, using specific forms of address, or maintaining a certain level of formality in communication and behavior. The act of standing in the presence of employers can be seen as a symbolic gesture of respect, acknowledging their authority or position of power. By remaining standing, Brenda is essentially showing that she is ready and available to assist her employers and carry out her duties promptly.
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The restaurant sector continues to grow despite the hurting economy.
true or false
Answers
Answer:
True
Explanation: do my monkey dance
Which of the following are outcomes associated with various types of organizational culture?
a. more positive organizational outcomes in market cultures
b. higher market share in clan and market cultures
c. more positive work attitudes in clan cultures
d. higher financial performance in market and hierarchy cultures
e. higher customer satisfaction in clan and market cultures
Answers
All the given options reflect the outcomes of the several types of organizational cultures.
Organizational culture refers to the ways of behaving within organizations. The organizational culture comprises the common beliefs, practices, expectations, and values established by leaders that guide and inform the actions of employees. A positive organizational culture is a key to establishing the traits necessary for the success of the business.
Since organizational cultures lead to improved performance, there are various outcomes associated with them such as improving organizational outcomes, raising market shares, boosting work attitude, increasing the financial performance of the business, and making customers more satisfied.
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Assume that electricity production has been done by several regional firms in the U.S. each operating as a pure monopoly.
Explain and graphically illustrate how the electrical monopolist would determine its profit maximizing price and output level. (Label Pm and Qm)
Identify any area of consumer and/or producer surplus for the profit maximizing monopoly.
Identify the deadweight loss for the monopolist.
Now assume the federal government imposes a regulation on the monopoly. Draw a new monopoly graph for part 2.
Show and explain how the regulated electrical monopolist would determine its profit-maximizing price and output level. (Label Pr and Qr)
Identify any area of consumer surplus and/or producer surplus for the profit maximizing monopoly.
Now the federal government decides to deregulate the market for electricity nationwide. Draw a new monopoly graph for part 3.
Show and explain how deregulation will impact price and output in the now perfectly competitive market for electricity production. (Hint: You should use a monopoly graph to show where the perfectly competitor would set price and quantity.) (Label Ppc and Qpc)
Answers
Profit Maximizing Monopoly:
As a pure monopoly, the electrical firm has market power, which means it can set its own price and output level. The firm will aim to maximize its profits by producing the quantity of electricity where marginal revenue (MR) equals marginal cost (MC). The price that the firm charges will be determined by the demand curve, which is downward sloping. The profit-maximizing price (Pm) will be higher than the marginal cost (MC) of producing the electricity. The output level (Qm) will be lower than the socially efficient output level, which is where marginal cost equals marginal benefit (MB). This results in a deadweight loss to society, which represents the loss of consumer and producer surplus.
Regulated Monopoly:
If the government regulates the electrical monopoly, it may impose price controls or quantity restrictions that limit the firm's market power. The regulated firm will aim to maximize its profits subject to the regulatory constraints. The profit-maximizing price (Pr) and output level (Qr) will be lower than the unregulated monopoly, but higher than the socially efficient level. This results in a smaller deadweight loss, but still represents a loss to society.
Perfectly Competitive Market:
If the market is deregulated and becomes perfectly competitive, the electrical firms will be price takers, meaning they have no market power. The price will be determined by the intersection of the market demand and supply curves, and the output level will be where the marginal cost equals the market price. The price (Ppc) and output level (Qpc) will be lower than the regulated monopoly and closer to the socially efficient level. There will be no deadweight loss, and the consumer and producer surplus will be maximized.
Profit Maximizing Monopoly:
^
|
Pm | Demand
| Curve
|
|
|
|------------------- MC
| Qm
|
|
Regulated Monopoly:
^
|
Pr | Demand
Regulated Curve
| /
| /
| /
|-----------/--- MC
| Qr
|
Perfectly Competitive Market:
^
|
Ppc | Demand
| Curve
| /
| /
| /
|-----------/--- Supply
| Qpc
|
How is a 401k different from an individual retirement account (IRA)?
A 401k is a good long-term investment strategy.
A 401k allows people to contribute before taxes.
A 401k is created by an individual who deposits money.
A 401k is created by an employer who may match contributions.
Answers
Imagine you are a market researcher who works for SaveSmart, a
discount insurance company. The company’s management has become
aware of some dissatisfaction among customers who have switched to
Save
Answers
As a market researcher at SaveSmart, a discount insurance company, the management has assigned me to investigate and address the dissatisfaction among customers who have switched to other insurance providers.
The goal is to understand the reasons behind their dissatisfaction and identify areas where SaveSmart can make improvements to retain customers and enhance overall customer satisfaction. To conduct this research, I would employ various methods such as surveys, interviews, and data analysis. Surveys can be distributed to the dissatisfied customers to gather their feedback and understand the specific issues they faced. Interviews can provide more in-depth insights and allow customers to express their concerns and suggestions. Additionally, analyzing customer data and comparing it with competitor offerings can help identify gaps in SaveSmart's services. Once the research is complete, the findings can be presented to the management along with actionable recommendations. These recommendations may include improving customer service, enhancing the claims process, offering additional coverage options, or providing competitive pricing. By addressing the concerns raised by dissatisfied customers and implementing appropriate changes, SaveSmart can work towards retaining existing customers and attracting new ones, ultimately improving customer satisfaction and loyalty.
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On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720.
Answers
Complete Question:
On January 1, the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720
Journalize the first interest payment and the amortization of the related bond discount using the Straight line method
Answer:
Kindly check Explanation
Explanation:
Given the following :
Face value of bond issued = $1,450,000
Cash received on Issuance = $1,408,720
Number of Interest payment on bond = 5 × 2 = 10(semiannual)
Therefore, discount on bond :
$(1,450,000 - 1,408,720) = $41,280
Spreading or amortizing diacou t on bond over the bond duration (use te straight line method)
Discount / period
$41,280 / 10 = $4,128
Interest expense a/c Dr $40,378
To discount on bond payable a/c Cr $4128
To cash a/c $36,250
What does the prefix re mean in the word reunited?
a.
both
c.
always
b.
again
d.
none of the above
Answers
Answer:
b. Again
Explanation:
Answer:
b.
again
Explanation:
Both reunion and reunite come from the Latin root unus, or "one," and the "again" prefix re-, so reunite means "make as one again."
Hàm số câif và cung của một hàng hóa như sau Qd=80-10P Qs=-70+20P Xác định giá và sản lượng cân bằng trên thị trường
Answers
Answer:
Equilibrium price = $5
Equilibrium quantity = 30 units
Explanation:
Given:
Quantity demanded = Qd = 80 - 10P
Quantity supplied = Qs = -70 + 20P
Find:
Equilibrium price and quantity
Computation:
Equilibrium price and quantity
Qd = QS
So,
80 - 10P = -70 + 20P
150 = 30P
Equilibrium price = $5
Qd = 80 - 10P
Qd = 80 - 10(5)
Equilibrium quantity = 80 - 50
Equilibrium quantity = 30 units
if the availability of a physical commodity over the period of a futures contract has value to users of the commodity, the commodity is said to provide:
Answers
If the availability of a physical commodity over the period of a futures contract has value to users of the commodity the commodity is said to provide hedging benefits or hedging value.
Hedging benefits refer to the advantage gained by market participants who use futures contracts to manage their exposure to price fluctuations in the physical commodity.
By entering into a futures contract users can lock in a future price for the commodity which provides stability & certainty in their procurement or supply chain management.
This hedging value allows users to mitigate the risks associated with price volatility & ensure a reliable supply of the commodity at a predetermined price thereby supporting their operational efficiency & financial planning.
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Toni Nicolet's
checking account balance on Monday, April 13, is $540; her savings balance is $980. On
Tuesday, April 14, she made an ATM withdrawal from checking of $86. On April 15, Toni plans to make
these online payments: income tax bill, $823, utility bill, $98, and charge account bill, $127. How much
money, if any, will Toni have to transfer into her checking account from savings to cover the online
payments and leave a balance of $50 in the checking account?
Answers
Answer:
$644
Explanation:
Toni has a balance of $540 on her checking account
She made an ATM withdrawal of $86
The balance on her checking account after withdrawal is
= $540 - $86
=$454
Toni intended to pay online payments on Arpril 15. The total of the payments
=$823 + $98 + $127
=$1048
It means Toni has a deficit of
=$454- $1048
=($594)
If Toni desires a balance of $50 after payments, she must withdraw 594+50 from the savings account.
=596 + 50
=$644
If the stock turnover rate for your industry is 3, how many months' worth of inventory should you keep in stock at all times? (a) 2. (b) 3, (c) 4,
(d) 9.
Answers
Answer:
2
Explanation:
the barter method of exchange isn't more common in the u.s. economy because the
Answers
Because it is inefficient, lacks standardization, and poses challenges in determining fair values for goods and services.
The barter method of exchange isn't more common in the U.S. economy because it is inefficient, lacks standardization, and poses challenges in determining fair values for goods and services. Barter relies on a direct exchange of goods or services without the involvement of money. However, the use of money as a medium of exchange offers several advantages that make it more prevalent in modern economies like the United States.
Efficiency: Barter requires finding a direct trading partner who has what you need and needs what you have. This process can be time-consuming and complicated, leading to inefficiencies in resource allocation. In contrast, using money as a medium of exchange allows for more efficient transactions since money is widely accepted and easily divisible.
Standardisation: Money provides a standardised unit of value that facilitates pricing and comparison. In a barter system, it can be challenging to establish a fair exchange rate between different goods or services. Money provides a common measure of value, enabling easy comparison and facilitating trade.
Divisibility: Money is divisible into smaller units, allowing for transactions of various sizes. In barter, the exchange must involve goods or services of relatively equal value, which limits the flexibility of transactions. Money allows for more precise and flexible exchanges.
Storage of value: Money serves as a store of value over time. It can be saved and used for future transactions. In a barter system, perishable goods or services may not hold their value over time, making it difficult to store wealth.
Specialization and trade: Money facilitates specialization and trade, leading to increased productivity and economic growth. In a barter system, individuals or businesses would need to be self-sufficient and produce all the goods and services they require. Money allows for specialization, where individuals can focus on producing goods or services in which they have a comparative advantage and then trade for other desired goods or services.
In summary, the inefficiency, lack of standardization, difficulty in determining fair values, and limitations on specialization and trade are reasons why the barter method of exchange is not more common in the U.S. economy. The use of money as a medium of exchange offers greater convenience, efficiency, and flexibility in conducting transactions, promoting economic growth and development.
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Cocoa Beach Company is considering replacing a machine that is presently used in the production of its product. The following data are available:
Old Machine New Machine
Original cost $200,000 $160,000
Useful life in years 10 5
Current age in years 5 0
Book value $100,000 ‑
Disposal value now $32,000 ‑
Disposal value in 5 years 500 2000
Annual cash operating costs $20,000 $14,000
Ignoring income taxes, the difference in cost between the old and new machine is $____
Answers
Ignoring income taxes, the difference in cost between the old and new machines is $96,366.
The given data is;
Initial cost = $200,000
The Annual operating cost = $20,000
Useful life in years= 10 years
Current period= 5 years
Book value current=$100,000
Disposal value present= $32,000
Disposal value in 5 years= $500
To calculate the present value,
PV = CF / (1 + r)^n
PV(initial cost) = $200,000 / (1 + 0.1)^5
PV(initial cost) = $110,974
PV(operating costs) = $20,000 x ((1 - (1 + 0.1)^-10) / 0.1)
PV(operating costs) = $116,745
PV(disposal value now) = $32,000 / (1 + 0.1)^5
PV(disposal value now)= $18,644
PV(disposal value in 5 years) = $500 / (1 + 0.1)^5 + $100,000 / (1 + 0.1)^5
PV(disposal value in 5 years) = $68,504
For new machines,
PV(initial cost) = $160,000 / (1 + 0.1)^0
PV(initial cost)= $160,000
PV(operating costs) = $14,000 x ((1 - (1 + 0.1)^-5) / 0.1)
PV(operating costs = $57,275
PV(disposal value in 5 years) = $2,000 / (1 + 0.1)^5 = $1,226
Total PV of the new machine = $160,000 + $57,275 + $1,226 = $218,501
Therefore the total difference between the two machines is,
$314,867 - $218,501 = $96,366.
Therefore, Ignoring income taxes, the difference in cost between the old and new machine is $96,366.
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