BUSINESS HIGH SCHOOL

Borrower Kathy has a starting balance of $150,000 at the beginning of January. She is being charged at 3.25% interest. Her total monthly payment for combined principal and interest is $640.50. How much of the first payment is the principal?1) $640.50
2) $844.64
3) $406.25
4) $234.25

Answers

Answer 1
Answer:

Answer:

4) $234.25

Explanation:

First, we have to find out the monthly interest payment which is shown below:

= (Starting balance of January month × interest rate) ÷ total number of years in a year

= ($150,000 × 3.25%) ÷ 12 months

= $406.25

The total monthly payments is $640.50

So, the first payment would be

= Total monthly payments - monthly interest payment

= $640.50 - $406.25

= $234.25

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Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected as the base year. In 2002, the basket’s cost was $600; in 2004, the basket’s cost was $650; and in 2006, the basket’s cost was $700. The value of the CPI in 2004 was (rounded to one decimal place)

Answers

Answer:

The answer is: The CPI for 2004 is 108.3

Explanation:

The Consumer Price Index (CPI) for 2004 can be calculated using the following formula:

CPI 2004 = (2004 basket cost / base year basket cost) x 100

CPI 2004 = (650 / 600) x 100

CPI 2004 = 108.3

The CPI measures changes in the price level of a basket of goods and services relative to a base year.

Final answer:

The Consumer Price Index (CPI) for the year 2004, given a base year of 2002 and respective basket costs, would be 108.3. This indicates an inflation rate or a rise in average price level of 8.3% compared to the base year.

Explanation:

To calculate the CPI in 2004, we first need to understand that the Consumer Price Index (CPI) is a measure used to reflect the average cost of a fixed basket of goods and services over time. In this case, the basket of goods was $600 in the base year of 2002, which is taken as the standard or comparison point. In 2004, the cost of the same basket increased to $650. The CPI is calculated using the formula:

CPI = (Cost of the basket in the current year/Cost of the basket in the base year) * 100

In this case, substituting the given values:

CPI (2004) = ($650/$600)*100 = 108.3 (rounded off to one decimal place)

So, the CPI in 2004 was 108.3. This suggests that the average prices in 2004 were 8.3% higher than in the base year 2002.

Learn more about Consumer Price Index here:

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☆ What is
Company? what is joint stock company?​

Answers

Answer:

a company whose stock is owned jointly by the shareholders

Explanation:

that is joint stock company

The cost advantages that manufacturers get from high-volume production are known as _________.A) economies of scale
B) physical goods
C) sustainable development
D) infrastructure
E) None of the above

Answers

Answer: Economies of scale.

Explanation:

The economies of scale is the cost advantage a production company stands to gain by producing more units of a product.

The major advantage in economies of scale is the fact that as more units of a product is made, the cost of production is added to a larger number of products.

Which tax is an indirect tax?A.)corporate income tax
B.)federal income tax
C.)property tax
D.)sales tax

Answers

Indirect tax is D. Sales tax.
Sales tax is the taxes that is charge or added to the items sold in the markets like hygiene, medicines, water, juices and drink and more.
It is added to the SRP of the item.

Answer:

sales tax

Explanation:

On January 1, 2012, Sunland Company issued $18000000 of 8% ten-year bonds at 103. The bonds are callable at the option of Sunland at 105. Sunland has recorded amortization of the bond premium on the straight-line method (which was not materially different from the effective-interest method). On December 31, 2018, when the fair value of the bonds was 96, Sunland repurchased $4020000 of the bonds in the open market at 96. Sunland has recorded interest and amortization for 2018. Ignoring income taxes and assuming that the gain is material, Sunland should report this reacquisition as

Answers

Based on the information provided, Sunland Company should report the reacquisition of the bonds as an extinguishment or retirement of debt.

When a company repurchases its own bonds before their maturity date, it is considered an extinguishment of debt. In this case, Sunland repurchased $4,020,000 worth of bonds at 96% of their face value, which indicates a discount from the face value of the bonds.

To properly report the reacquisition, Sunland should record the following:

1. Retirement of Bonds Payable: Debit the Bonds Payable account by the face value of the bonds repurchased, which is $4,020,000.
2. Gain on Extinguishment of Debt: Credit the Gain on Extinguishment of Debt account for the difference between the carrying amount of the bonds ($4,020,000 * 96%) and their recorded value on the books.
3. Cash: Credit the Cash account for the amount paid to repurchase the bonds, which is $4,020,000.

It's important to note that the gain or loss on extinguishment of debt should be reported separately on the income statement, typically as a non-operating item. Additionally, the amortization of the bond premium and interest expense should also be recorded, as mentioned in the provided information.

Which of the following is NOT one of the four industry categories?a. tertiary industries
b. primary industries
c. trinity industries
d. secondary industries

Answers

The best answer to the question 'which of the following is not one of the four industry categories' would be letter c. Trinity industries does not fall under the industry categories. Tertiary, primary, and secondary industries - along with quaternary industries- are the four industry categories.
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