BUSINESS COLLEGE

Your parents are giving you $190 a month for 4 years while you are in college. At an interest rate of .45 percent per month, what are these payments worth to you when you first start college?

Answers

Answer 1
Answer:

Answer:

Amount = 2827.2 dollars

Explanation:

Given

principal amount per month = 190

Total time period = 4 years = 48 months

Monthly rate of interest = 0.45

As we know that

A = P * (1+ (r)/(n)) ^(nt)

Where A is the amount

P is the principal amount

r is the rate of interest

n is the number of times interest applied over the total time period

t is the total time period

Substituting the given values in above equation, we get -

A = (190 * 12) * ( 1 + 0 .0045)^(48)\nA = 2280 * 1.24\nA = 2827.2
Answer 2
Answer:

Final answer:

The payments of $190 per month for 4 years that your parents are giving you at the start of college, assuming an interest rate of .45 percent per month, are worth $7484.86.

Explanation:

The subject of this question is about calculating the present value of an annuity. The formula to calculate the present value of an annuity is PV = PMT * [(1 - (1 + r)^-n) / r], where PV is the present value, PMT is the monthly payment, r is the monthly interest rate, and n is the number of periods. Here PMT = $190, r = .45/100 = .0045, and n = 4 * 12 = 48 months.

Substituting the values into the formula, we get PV = 190 * [(1 - (1 + .0045)^-48)/.0045]. Then, performing the calculations, we get the present value PV = $7,484.86. Therefore, the payments your parents are providing for the 4 years of college are worth $7484.86 when you first start college assuming an interest rate of .45 percent per month.

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Aragon Company has just received the August 21, 2010 bank statement, which is summarized below. County National Bank Disbursements Receipts Balance

Balance, August 1 $9,369

Deposits during August $32,200 41,569

Note Collected for depositor, including $40 interest 1,040 42,609

Checks cleared during August $34,500 8,109

Bank Service Charges 20 8,089

Balance, August 31 8,089

The general ledger Cash account contained the following entries for the month of August.

Cash

Balance, August 1 10,050 Disbursements for August 35,403

Receipts during August 35,000

Deposits in transit at August 31 are $3,800, and checks outstanding at August 31 total $1,550. Cash on hand at August 31 is $310. The bookkeeper improperly entered one check in the books at $146.50 which was written for $164.50 for supplies (expense); it cleared the bank during the month of August.

Instrustions:

a. Preare a bank reconciliation dated August 31, 2010, proceeding to a correct balance.

b. Prepare any entries necessary to make the books correct and complete.

c. What amount of chas should be reported in the August 31 balance sheet?

Answers

a. The preparation of the bank reconciliation is shown below.

b. The entries are given below.

c. The amount of cash should be $10,649.

Preparation, journal entries:

a. The preparation of the bank reconciliation is presented below.

Bank balance as per bank statement $8,089

Add: cash on hand $310

Add: deposit in transit $3.800

Less: outstanding checks $1,550

Adjusted balance $10,649

Balance as per cash book ($10,050 + $35,000 - $35,403) $9,647

Less: correction ($164.5 - $146.5) $18

Less: bank service charge $20

Add: note collected $1,040

Adjusted balance $10,649

b. The journal entries:

Cash $1,040

  Note receivable $1000

 Interest receivable $40

(Being collection od note & interest)

Bank charges $20

      cash $20

(being bank charges are recorded)

Supplies expense $18

         cash $18

(Being error in recording check)

c. The amount of cash should be $10,649.

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Answer:

Complete solution in tabular form is given below for better understanding and demonstration.

You are the newly appointed sales manager of the Rock Record Company and have been charged with the task of increasing revenues. Your economics consultants have informed you that at present price and output levels, price elasticity of demand for your product is less than one. You should:

Answers

Answer:

Increase price.

Explanation:

Price elasticity is the degree of responsiveness of quantity demanded to changes in price. Ideally as price increases quantity demanded reduces. When prices reduce quantity demanded increases.

As a new manager of Rock Record company, if the economics consultants inform you the price elasticity is less than one it means quantity does not change with increase in price.

So price can be increased without a corresponding decrease in price. The goal of higher revenue can be achieved by increasing the product price.

Answer:

The correct answer is: increase prices.

Explanation:

Price elasticity refers to the changes in quantity demand after the change in price for a good or service. Elasticity is calculated by dividing the percentage in quantity demanded by the percentage change in price. If the result is equal or greater than one (1) the demand is elastic. If the result is lower than 1 the demand is inelastic.

Thus, in the case given, Rock Record Company has an inelastic price demand since it is lower than 1. It implies changes in price are unlikely to change the quantity demanded. As the company needs to increase the revenue, the easiest method to achieve that is to raise the product prices.

A $6,000, 60-day, 12% note recorded on November 21 is not paid by the maker at maturity. The journal entry to recognize this event is A. debit Cash, $6,120 credit Notes Receivable, $6,120B. debit Accounts Receivable, $6,120 credit Notes Receivable, $6,000 Credit Interest Receivable, $120C. debit Notes Receivable, $6,060 credit Accounts Receivable, $6,060D. debit Accounts Receivable, $6,120 credit Notes Receivable, $6,000Credit Interest Revenue, $120

Answers

Answer:

Option (B) is correct.

Explanation:

On November 21,

Note amount = $6,000

Period = 60-day

Interest rate = 12%

When Note is not paid by the market at maturity, then

The Accounts Receivable Account is debited with the Par Value of Note plus interest income and credited Notes Receivables $6,000 and Credit Interest Revenue $120.

Therefore, the journal entry is as follows:

Accounts Receivable A/c     Dr. $6,120

To Notes Receivables                              $6,000

To Interest Revenue                                 $120

(To record the note)

Final answer:

The journal entry to recognize a note not being paid at maturity is to debit Cash and credit Notes Receivable for the principal balance and to credit Interest Revenue for the accrued interest.

Explanation:

The correct journal entry to recognize the event of a $6,000, 60-day, 12% note not being paid by the maker at maturity is: A. debit Cash, $6,120
credit Notes Receivable, $6,12

This entry debits the Cash account to account for the amount the maker owes and credits the Notes Receivable account to remove the note from the books. The additional $120 represents the accrued interest, which is recognized as Revenue.

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Suppose the reserve requirement (R) is 15%. What is the effect on total checkable deposits in the economy if bank reserves increase by $60 billion. Assume E=0

Answers

Answer:

$400 billion

Explanation:

The computation on the impact on total checkable deposits is shown below

= Increased in the bank reservce ÷ reserve requirement

= $60,000,000,000 ÷ 15%

= $400 billion

Therefore the impact on the total checkable deposits in the case when the bank reserves rises is $400 billion

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Sylvia is conducting a job analysis for the level one and level two account manager positions at her firm. In doing so, she should consult all of the following EXCEPT __________.a. the Dictionary of Occupational Titles
b. role incumbents
c. supervisors
d. job applicants

Answers

Answer:

Option d: Job applicant

Explanation:

A job is simply defined as a group of related activities/duties.

Job Analysis is simply the task of collection information about the job that is to identification of tasks, duties, responsibilities and others that is done by human resources (HR) department, by observing, surveys, interviews, and other means. In Job analysis, there are different people or unit to consult in an organization when carrying it out e. g supervisor. A job applicant have no business with a job analysis as it is not up to them or within their domain/jurisdiction.

Kent Enterprises purchased a truck for $60,000 on January 1 of its first year. The company uses the units-of-activity method and it estimates that the truck’s useful life will be 100,000 miles. The truck will have an estimated salvage value of $10,000. The company drives the truck 25,000 miles in the first year and drives it 20,000 miles in the second year. How much accumulated depreciation will be reported on the company’s balance sheet as of the end of the second year?

Answers

Answer:

Accumulated depreciation on car at the end of year 2 will be 22,500

Explanation:

The unit-of use Method recognize depreciation base on the use of a cost driver. This cost driver could be miles, number of units produced, or others.

(Adquisition \: Value- \: Salvage \: Value)/(cost \: driver)= Depreciation \: rate

(60,000-10.000)/100,000 = .5 rate per mile

acumulated depreciation at year 2

(year 1 + year 2) * \: rate = \: accumulated \: depreciation

25,000 + 20,000= 45,000 total miles driven

45,000 * 0.5 = 22,500
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