Business, 23.08.2021 15:40 cmariecarrizales

Seventeen years ago, the Archer Corporation borrowed $6,500,000. Since then, cumulative inflation has been 65 percent (a compound rate of approximately 3 percent per year). a. When the firm repays the original $6,500,000 loan this year, what will be the effective purchasing power of the $6,500,000? (Hint: Divide the loan amount by one plus cumulative inflation.)
b. To maintain the original $6,500,000 purchasing power, how much should the lender be repaid? (Hint: Multiply the loan amount by one plus cumulative inflation.)
c. If the lender knows he will receive only $6,500,000 in payment after 17 years, how might he be compensated for the loss in purchasing power? A descriptive answer is acceptable.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:20

For a multistate lottery, the following probability distribution represents the cash prizes of the lottery with their corresponding probabilities. complete parts (a) through (c) below. x (cash prize, $) p(x) grand prizegrand prize 0.000000008860.00000000886 200,000 0.000000390.00000039 10,000 0.0000016950.000001695 100 0.0001582930.000158293 7 0.0039114060.003911406 4 0.0080465690.008046569 3 0.012865710.01286571 0 0.975015928140.97501592814 (a) if the grand prize is $13 comma 000 comma 00013,000,000, find and interpret the expected cash prize. if a ticket costs $1, what is your expected profit from one ticket? the expected cash prize is $nothing.

Answers: 3

Answer

Business, 22.06.2019 16:00

What is used by accountant to analyze transactions ?

Answers: 2

Answer

Business, 22.06.2019 17:10

At the end of the current year, accounts receivable has a balance of $550,000; allowance for doubtful accounts has a credit balance of $5,500; and sales for the year total $2,500,000. an analysis of receivables estimates uncollectible receivables as $25,000. determine the net realizable value of accounts receivable after adjustment. (hint: determine the amount of the adjusting entry for bad debt expense and the adjusted balance of allowance of doubtful accounts.)

Answers: 3

Answer

Business, 22.06.2019 21:30

The year-end financial statements of calloway company contained the following elements and corresponding amounts: assets = $34,000; liabilities = ? ; common stock = $6,400; revenue = $13,800; dividends = $1,450; beginning retained earnings = $4,450; ending retained earnings = $8,400. based on this information, the amount of expenses on calloway's income statement was

Answers: 1

Answer

You know the right answer?

Seventeen years ago, the Archer Corporation borrowed $6,500,000. Since then, cumulative inflation ha...

Questions