Simple & Compound Interest Questions and Answers

Q2 Assume that Shannon s decides to move forward with its loyalty rewards program Estimates for the cost per customer are 3 2 per month Average customer margins before subtracting off the cost of the loyalty rewards program are expected to be 36 per customer per month with a boost in retention to 82 per month What is the resulting CLV if the annual interest rate for discounting cash flows remains the same as in Q1 Compute your answer to the nearest dollar

2 A road has an elevation change of 23 2 feet in the horizontal distance of 1400 feet What is the grade of the road in percent 3 points

Part 1 of 2 1 92 points 1 a Allocate the lump sum purchase price to the separate assets purchased 1 b Prepare the journal entry to record the purchase 2 Compute the first year depreciation expense on the building using the straight line method assuming a 15 year life and a 30 000 salvage value 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation Answer is not complete Complete this question by entering your answers in the tabs below Required 1A Required 1B Required 2 Required 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation Depreciation expense on land improvements 31 936 Required 2 Required 3

3 A machine costing 211 600 with a four year life and an estimated 16 000 salvage value is installed in Luther Company s factory on January 1 The factory manager estimates the machine will produce 489 000 units of product during its life It actually produces the following units 121 700 in Year 1 123 500 in Year 2 121 500 in Year 3 132 300 in Year 4 The total number of units produced by the end of Year 4 exceeds the original estimate this difference was not predicted Note The machine cannot be depreciated below its estimated salvage value 1 92 points Required Compute depreciation for each year and total depreciation of all years combined for the machine under each depreciation method Note Round your per unit depreciation to 2 decimal places Round your answers to the nearest whole dollar Complete this question by entering your answers in the tabs below Straight Line Year Units of Production Year Compute depreciation for each year and total depreciation of all years combined for the machine under the Units of production Units Double declining balance 121 700 Answer is not complete Units of Production Depreciable Units 121 700 Depreciation per unit 0 40 Depreciation Expense Return to question 51 114 X

To pay for a 17 600 truck Aldo made a down payment of 3700 and took out a loan for the rest On the loan he paid monthly payments of 307 68 for 4 years a What was the total amount Aldo ended up paying for the truck including the down payment and monthly payments b How much interest did Aldo pay on the loan S X S

Chang obtains a loan for home renovations from a bank that charges simple interest at an annual rate of 15 His loan is for 12 500 for 84 days Assume each 1 day is of a year Answer each part below 365 Do not round any intermediate computations and round your final answers to the nearest cent If necessary refer to the list of financial formulas a Find the interest that will be owed after 84 days s b Assuming Chang doesn t make any payments find the amount owed after 84 days X

1 1 b Prepare the journal entry to record the purchase 2 Compute the first year depreciation expense on the building using the straight line method assuming a 15 year life and a 30 000 salvage value Part 1 of 2 1 92 points 3 Compute the first year depreciation expense on the land improvements assuming a five year life and double declining balance depreciation Complete this question by entering your answers in the tabs below Required 1A Required 1B Required 2 Prepare the journal entry to record the purchase No 1 Date January 01 Building Land Land improvements Answer is not complete Vehicles Cash Required 3 General Journal 30303 Debit 467 650 x 268 650 X 179 100 x Credit 79 600 x 830 000 Return to question

I Cone Corporation is in the process of preparing Its December 31 2024 balance sheet There are some questions as to the pro classification of the following items a 60 000 in cash restricted in a savings account to pay debt The debt matures in 2028 b Prepaid rent of 34 000 covering the period January 1 2025 through December 31 2026 c Notes payable of 220 000 The notes are payable in annual installments of 30 000 each with the first installment paya March 1 2025 d Accrued interest payable of 22 000 related to the notes payable is due June 30 2025 e Investment in equity securities of other corporations 100 000 Cone Intends to sell one half of the securities in 2025 Required Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported Current assets Long term investments Other assets Current liabilities CONE CORPORATION Balance Sheet Partial At December 31 2024 Assets Liabilities and Shareholders Equity

1 2 PS 7 At a butcher shop Hilda bought 4 20 number of pounds of pork she bought using a decimal Hilda bought 9 lb of beef and some pork She left with 14 25 lb of pork lb of meat Express the

Analysis 01 Assume that you have 1 000 to invest so insert 1000 as your Present Value in the table below 1 Assume that you want to invest your money for 5 years insert 5 for Number of Periods Assume an 2 annual interest rate of 3 00 insert 3 for Interest Rate Per Period The table below will determine the 3 Future Value of your investment If you input the numbers correctly your Future Value is computed to be 1 159 which is what your investment will be worth in 5 years Now revise the input to reflect your 5 actual savings and the prevailing interest rate so that you can see how your savings will grow in 5 years Even if you have no savings now you can at least see how the interest rate affects the future value of savings by revising your input in the Interest Rate per Period and then notice the change in the Future Value Future Value of a Present Amount Present Value Number of Periods Interest Rate per Period Future Value

Omar is a loan officer at a local bank He carries health insurance for himself his wife and their three children The monthly premium for health insurance that is deducted from his paycheck is 575 20 Omar s salary places him in the 15 federal income tax rate Calculate the amount of tax savings Omar will have if his health insurance premiums are withheld from his paycheck before his taxes are calculated

4 Part 2 of 2 4 16 points Skipped eBook Print References The following information is available to reconcile Branch Company s book balance of cash with its bank statement cash balance as of July 31 Help a On July 31 the company s Cash account has a 24 957 debit balance but its July bank statement shows a 26 490 cash balance b Check Number 3031 for 1 180 Check Number 3065 for 366 and Check Number 3069 for 1 948 are outstanding checks as of July 31 c Check Number 3056 for July rent expense was correctly written and drawn for 1 230 but was erroneously entered in the accounting records as 1 220 d The July bank statement shows the bank collected 9 000 cash on a note for Branch Branch had not recorded this event before receiving the statement e The bank statement shows an 805 NSF check The check had been received from a customer Evan Shaw Branch has not yet recorded this check as NSF f The July statement shows a 14 bank service charge It has not yet been recorded in miscellaneous expenses because no previous notification had been received g Branch s July 31 daily cash receipts of 10 132 were placed in the bank s night depository on that date but do not appear on the July 31 bank statement View transaction list 2 Prepare the journal entries necessary to make the company s book balance of cash equal to the reconciled cash balance as of July 31 Note If no entry is required for a transaction event select No journal entry required in the first account field Journal entry worksheet Save Exit Su Check my wa

NO CREDIT 1 Kyle invests 20 000 in a partnership that has five other part ners The total investment of the partners is 160 000 What percent of the business is owned by the five other partners

Perform the indicated operation 10 two 11 two two

Part 3 of 4 3 57 points eBook Print References Mc Required information Perpetual FIFO Perpetual LIFO Date March 1 Compute the cost assigned to ending inventory using weighted average Note Round your average cost per unit to 2 decimal places March 5 Average March 5 March 9 March 18 Average March 18 March 25 Weighted Average Average March 25 March 29 Totals Goods Purchased of units Specific Id Cost per unit TAL AL balam of units sold Weighted Average Perpetual Cost of Goods Sold Cost per unit Cost of Goods Sold 0 00 of units 120 at Inventory Balance Cost per unit Inventory Balance 51 40 6 168 00

2 A student answered three questions on a 40 question test incorrectly What percent did the student answer correctly O A 43 B 37 C 7 5 D 92 5

Problem Direct Materials Beginning Ending Work in Process Beginning Ending Direct Labor Gross Profit DIRECT MATERIALS 60 72 DIRECT LABOR 40 42 Finished Goods Beginning Ending Calculate the following show all of your work 38 34 Indirect Costs WORK IN PROCESS Sales Direct Labor Cost of Goods Sold Purchases FINISHED GOODS UST 60 500 370 105 CO GOO

1 Expand and Simplify the following a 3x x 6 5x 2x 4 6 Ma b 3xy 5x 2y 1 2xy 3y 2

Write the following as an algebraic expression Simplify if possible Add 5y 9 to 4y 8

Suppose that the only good you purchase is premium bottled water and that at the beginning of the year the price of a bottle is 2 00 Suppose you lend 1 000 for one y at an interest rate of 13 9 percent At the end of the year the price of premium bottled water has risen to 2 13 Calculate the real interest rate on the loan 96 Enter your response as a percentage rounded to one decimal place

In February 2022 the nominal interest rate on the one year Treasury bill was 0 97 percent From February 2022 to February 2023 the consumer price index rose from 284 6 to 301 6 If you bought the one year Treasury bill in February 2022 the interest rate you eamed over the following 12 month period was Enter your answer rounded to two decimal places and include a minus sign if necessary Real time data provided by Federal Reserve Economic Data FRED Federal Reserve Bank of Saint Louis

8 What is the monthly payment for a 20 000 loan for 4 years with an annual interest rate of 4 8

Real GDP per capita in the United States grew from about 6 000 in 1900 to about 55 786 in 2020 which represents an annual growth rate of 1 88 percent Real time data provided by Federal Reserve Economic Data FRED Federal Reserve Bank of Saint Louis If the United States continues to grow at this rate it will take 37 2 years for real GDP per capita to double Enter your response rounded to two decimal places If government economic policies meant to stimulate economic growth result in the annual growth rate increasing to 2 13 percent it will take years for real GDP per capita to double Enter your response rounded to two decimal places

What is the speed of a car going v 1 000 mph in Sl units Notice that you will need to change from miles to meters and from hours to seconds You can do each conversion separately Use the facts that 1 mile 1609 m and 1 hour 3600 s Express your answer in meters per second to four significant figures View Available Hint s AEO

4 Geologists have determined that the Earth is about 4 57 billion years old 4 570 000 000 years endierovst a If you wanted to represent this length of time with a roll of receipt paper so that one inch of the paper represents one million years how long would the paper have to be in inches b Convert the paper s length inches to miles c What is the paper s length in kilometers AMST 5 Today the Atlantic Ocean is about 5 700 km wide at the latitude of Boston At one time there was no Atlantic Ocean because the North American continent and the African continent were joined Then 185 000 000 years ago the two continents moved apart by a process called seafloor spreading a Assuming the rate of seafloor spreading has been constant what rate has North America been moving away from Africa in kilometers per year b What is this rate in centimeters per year

As you leave Clark the sign says Lutherville 145 miles Otisburg 235 miles If the Planet Diner is halfway betwe Lutherville and Otisburg how far is it from Clark The diner is miles from Clark

Joe s annual income has been increasing each year by the same dollar amount The first year his income wa 22 900 and the 9th year his income was 34 100 In which year was his income 49 500 His income was 49 500 in the th year TEE

4 1 66 points eBook Hint Print References The following adjusted trial balance at December 31 of Wilson Trucking Company Account Title Cash Accounts receivable office supplies Trucks Accumulated depreciation Trucks Land Accounts payable Interest payable MA Long term notes payable Common stock Retained earnings Dividends Trucking revenue Depreciation expense Trucks Salaries expense Office supplies expense Interest expense Totals Debit 9 000 18 500 4 000 182 000 WILSON TRUCKING COMPANY Balance Sheet December 31 Assets 95 000 21 000 Credit 37 000 15 000 5 000 63 000 35 000 145 000 140 000 24 500 64 000 9 000 13 000 440 000 440 000 Prepare Wilson Trucking Company s classified balance sheet as of December 31 The Retained Earnings account balance was 145 000 at December 31 of the prior year Help Sa

3 66 oints eBook Hint Print References Required information The following information applies to the questions displayed below Stark company has the following adjusted accounts with normal balances at its December 31 year end 27 000 Accumulated depreciation Buildings 4 100 Accounts receivable 820 Utilities expense 9 500 Interest payable 2 000 Unearned revenue 42 000 Supplies expense Notes payable Prepaid insurance Interest expense Accounts payable Wages payable Cash Wages expense Insurance expense Common stock Services revenue 9 100 Buildings 3 400 Dividends 26 000 Depreciation expense Buildings 100 000 Supplies Retained earnings Complete this question by entering your answers in the tabs below Statement of Retained Balance Sheet Earnings 31 000 7 200 2 900 Income Statement Prepare the income statement for the year ended December 31 740 500 1 600 500 520 Use the adjusted accounts for Stark Company to prepare the 1 income statement and 2 statement of retained earnings for the year ended December 31 and 3 balance sheet at December 31 The Retained Earnings account balance was 94 800 on December 31 of the prior year 200 000 11 000 10 000 1 600 94 800 Check

The total cost of a new automobile including a 8 sales tax on the price of the automobile is 29 081 How much of the total cost of this new automobile is sales tax The sales tax is S Round to the nearest dollar as needed XX

24 A company had the following transactions a The company completed a job for a customer and sent a bill for 4 600 to be received within 45 days b The company completed advisory work for a customer and immediately received 6 100 cash c The company paid a contractor 1 700 cash for work performed this period d The company paid 820 cash for this period s utilities e The company collected 2 300 cash as a partial payment for the amount owed by the customer in transaction a Enter the impact of each transaction on individual items of the accounting equation Note Enter decreases to account balances with a minus sign a b Balance C Transaction Balance d Balance e Balance Cash Assets 0 0 0 0 Accounts Receivable 0 0 0 0 B Liabilities Accounts Payable 0 0 0 0 Revenues 0 0 0 0 Equity 1 Expenses 0 0 0 0

ts eBook Print eferences Karla Tanner opened a Web consulting business called Linkworks and completed the following transactions in its first month of operations April 1 Tanner invested 125 000 cash along with office equipment valued at 30 000 in the company in exchange for common stock April 2 April 3 April 6 April 9 April 13 April 19 The company prepaid 7 200 cash for 12 months rent for office space Hint Debit Prepaid Rent for 7 200 The company made credit purchases for 15 000 in office equipment and 3 000 in office supplies Payment is due within 10 days The company completed services for a client and immediately received 2 000 cash The company completed a 10 000 project for a client who must pay within 30 days The company paid 18 000 cash to settle the account payable created on April 3 The company paid 6 000 cash for the premium on a 12 month prepaid insurance policy Hint Debit Prepaid Insurance for 6 000 The company received 8 000 cash as partial payment for the work completed on April 9 April 22 April 25 The company completed work for another client for 2 640 on credit April 28 The company paid a 6 200 cash dividend April 29 The company purchased 1 000 of additional office supplies on credit April 30 The company paid 700 cash for this month s utility bill Required 1 Prepare general journal entries to record these transactions using the following titles Cash 101 Accounts Receivable 106 Office Supplies 124 Prepaid Insurance 128 Prepaid Rent 131 Office Equipment 163 Accounts Payable 201 Common Stock 307 Dividends 319 Services Revenue 403 and Utilities Expense 690 2 Post the journal entries from part 1 to the ledger accounts 3 Prepare a trial balance as of April 30 tion by entering your answers in the tabs below Check my

Uffice Equipment 163 Drafting Equipment 164 Building 170 Land 172 Accounts Payable 201 Notes Payable 01 Accounts Receivable 106 Prepaid 250 Common Stock 307 Dividends 319 Services Revenue 403 Wages Expense 601 Advertising Expense 603 and Repairs Expense 604 View transaction list Journal entry worksheet 1 2 3 Note Enter debits before credits Tranasaction a 4 5 J Aracel the owner invested 190 000 cash office equipment with a value of 7 000 and 65 000 of drafting equipment to launch the company in exchange for common stock 6 Account Title 7 8 17 Debit Credit Show less A

The Howards are saving up to go on a family vacation in 5 years They invest 2200 into an account with an annual interest rate of 1 42 compounded daily Answer the questions below Do not round any intermediate computations and round your final answers to the nearest cent If necessary refer to the list of financial formulas Assume there are 365 days in each year a Assuming no withdrawals are made how much money is in the Howards account after 5 years b How much interest is earned on the Howards investment after 5 years X

P7 14 Express each of the following octal numbers in binary hexadecimal and decimal forms a 777 78 b 123 58 C 24 48

ook Int int ences Required information The following information applies to the questions displayed below The transactions of Spade Company appear below a K Spade owner invested 12 250 cash in the company in exchange for common stock b The company purchased supplies for 355 cash c The company purchased 6 774 of equipment on credit d The company received 1 446 cash for services provided to a customer e The company paid 6 774 cash to settle the payable for the equipment purchased in transaction c f The company billed a customer 2 597 for services provided g The company paid 530 cash for the monthly rent h The company collected 1 091 cash as partial payment for the account receivable created in transaction f i The company paid a 900 cash dividend to the owner sole shareholder Prepare the Trial Balance Use May 31 as its report date Note Hint Accounts must be listed in financial statement order Assets first followed by liabilities equity revenues and expenses SPADE COMPANY Trial Balance May 31 Debit

In 1924 the famous novelist F Scott Fitzgerald wrote an article for the Saturday Evening Post titled How to live on 36 000 a Year in which he wondered how he and his wife had managed to spend all of that very high income without saving any of it The CPI in 1924 was 17 and the CPI in 2020 was 259 Source F Scott Fitzgerald How to live on 36 000 a Year Saturday Evening Post April 5 1924 The income you would have needed in 2020 to have had the same purchasing power that Fitzgerald s 36 000 had in 1924 is Enter your response rounded to the nearest dollar

A 140 000 mortgage was amortized over 10 years by monthly repayments The interest rate on the mortgage was fixed at 5 50 compounded semi annually for the entire period a Calculate the size of the payments rounded up to the next 100 Round up to the next 100 b Using the payment from part a calculate the size of the final payment

MR MRS CHAN WANT TO BUY FURNITURE THAT HAS A CASH PRICE OF 3450 ON THE INSTALLMENT PLAN THEY MUST PAY 25 OF THE CASH PRICE AS A DOWN AYMENT AND MAKE SIX MONTHLY PAYMENTS OF 437 WHAT FINANCE CHARGE UST THE CHANS PAY AND WHAT IS THE APR TO THE NEAREST HALF PERCENT

What element is being oxidized in the following redox reaction C3H802 aq Na2Cr207 aq C3H404 aq Cr 3 aq O Cr OH O Na O O O C

2 points The Green Growery Nursery needs to borrow 48000 to increase its inventory for the upcoming summe session The owner is confident that he will sell most if not all of the new plants during the summer so he wishes to borrow money for only four months His bank has offered him a simple interest amortized loan at 93 interest a Find the size of the monthly bank payment b Complete the following amortization schedule for all four months of the loan Payment Number Principal Portion Interest Portion Total Payment 0 1 2 3 Balance

38 3 Simon takes a loan from Ayanda to the value of R25 000 to start up a new business Ayanda charges him interest at 12 per annum compounded semi annually Three years after he took out the loan Simon repays an amount of R12 000 Ayanda then changes the loan agreement and charges Simon interest rate of 15 per annum compounded monthly for ffuther 2 years At the end of the first year of this new agreement Simon borrows a further R10 000 3 3 1 Draw a timeline for the loan as described above 3 3 2 Calculate the amount of money that Simon owes after 5 years 3 5

I can determine the annual percentage yield How I Did Circle one I got it I m still learning it 4 Mabel Causino has 35 000 to invest in a certificate of deposit for 4 years The CD earns 4 75 interest compounded daily What is the annual percentage yield 1 point

2 Breakeven quantity analysis The Acme Candy Company is preparing to offer a new product called the Minty Dark Chocolate Bite Bar The material costs per unit of the new candy bar are 0 10 for chocolate 0 02 for sugar and 0 03 for mint flavoring Labor costs are estimated to be 0 10 per unit candy bar Building a production line facility devoted to the new candy bar will have two fixed costs cost 150 000 paid in full at the start of candy bar production and operating costs for the facility are estimated to be 200 000 per year Show all work starting with listing and labeling given information In all calculations first show theoretical equations used and include any assumptions made time value of money is not to be considered in this problem INTEINEN GUTE d Hand draw and label a complete breakeven analysis graph for the new candy bar product showing all essential conceptual features of the breakeven analysis graph does not have to be to a precise scale but you must label all variables axes and essential features of your

8 RiverRocks Inc is considering a project with the following projected free cash flows Year Cash Flow in millions 0 50 9 9 4 a The net present value of the project is b Should RiverRocks take on this project 1 2 19 9 3 20 1 4 14 3 The firm believes that given the risk of this project the WACC method is the appropriate approach valuing the project RiverRocks WACC is 11 7 million Round to three decimal places

Find the cumulative distribution for the table Use a value of 6 to stand for 6 or more bedrooms Number of Bedrooms Percent Cumulative 4 11 28 34 14 8 1 0 1 2 3 4 5 6 or more median mode Read It Additional Materials Find the mean median and mode for the table If an answer does not exist enter DNE Round your mean to two decimal places mean 3 X bedrooms bedrooms 3 DNE X bedrooms Need Help Tech Guide Excel Tech Guide TI 83 84 Tech Guide TI Nspire 4 15 43 77 91 99 100 Watch It

the a annual net income and b annual yield 1 Beverly Ray bought a real estate rental property for 345 900 After a 100 000 down payment she mortgage the rest Her annual expenses totaled 28 760 and she rented the condo for 3 975 per month

Consider a directed graph G with N nodes and M directed edges Each node has an associated integer weight Your task is to find the maximum weight of any simple cycle a cycle with no repeated nodes in the graph Design an algorithm to solve this problem efficiently

evenues osts Sales Cost of goods sold Gross profit Selling and administrative expenses Operating sticome boss Rhinebeck Company Product Line Income Statement For the Month Ended October 31 Mariable Hats 71 000 32 600 38 400 27 400 11 000 Variable cost of goods sold Gloves 105 700 42 300 63 400 42 800 20 600 Fix costsar 20s of the cost of goods sold and 30 of the selling and administrative expenses Rhinebeck that fixed coars would not be materially affected if the Gloves line were discontinued terential analysis deted October 11 to determine if Mutfers should be continued Altematree 2 It an amount is cers wnter 0 If required ua minus sign ta indicate a nud LA Differential Analysis Continue Alt 53 or Discontinus Alt 2 Mufflers Differential Analysis Continue Alt 1 or Discontinue Alt 2 Mufflers October 31 21 600 Mufflers 45 000 27 000 18 000 25 000 7 000 Continue Discontinue Differential Effects Mufflers Mufflers Alternative 1 Alternative 2 Alternative 2 45 000 0 45 000 0 21 600 Nem

Last year Andrew s salary went from 30 000 to 35 000 Calculate the percent increase and round to the nearest tenth 1 14 3 2 8 7 3 16 7 4 52