Case Study
Questionable Accounting Practices
Arthur Andersen is most known for his work as an accountant and consultant for Enron and other major corporations. Many students nowadays are likely only familiar with Arthur Andersen in a negative light, yet before becoming connected with Enron and going out of business, it was one of the "Big Five" accounting companies and was well-respected. The case goes into depth about the firm's contacts with important clients, in addition to detailing its long history. The case also details some of the firm's struggles in its latter years, notably when it began to place greater emphasis on its consulting business, even positioning it to compete with its more well-established accounting division. This case highlights some of Arthur Andersen's legal proceedings leading up to the firm's bankruptcy, as well as parts of the company's corporate culture that permitted wrongdoing. Some of the issues with its company culture included an overabundance of concentration on obtaining high-profile clients at all costs, as well as an employee reward scheme that unintentionally encouraged wrongdoing.
The case also addresses the impact of the company's conduct on numerous stakeholders, such as its role in the creation of the Sarbanes-Oxley Act of 2002. The company put a disproportionate amount of emphasis on expansion and profitability at any costs, even if it meant putting its stakeholders and clients at risk. Inexperienced personnel were also given too much power by Arthur Andersen, allowing them to make decisions that were above their skill set. After being caught destroying Enron documents, Andersen was found guilty of obstruction of justice and fined $500,000. The brand name, on the other hand, was polluted and had lost most of its value. Accenture, which has separated itself from the Andersen name and is still in business, was spun off from Andersen (however is nowhere near as large as Andersen was). The Supreme Court overturned the obstruction of justice ruling in 2005 on the technicality that some terminology in the original court records was too narrowly defined. However, the harm to Arthur Andersen's reputation had already been done. Andersen's unethical accounting methods cost the company tens of millions of dollars and thousands of jobs.
1. Explain the legal and ethical considerations that arise when Andersen audits companies accused of accounting fraud.
2. Is there any evidence that Andersen's business culture played a role in its downfall?
3. How may the Sarbanes–Oxley Act's provisions help to reduce the chances of auditors missing accounting irregularities?
Answers
The case of Arthur Andersen highlights legal and ethical considerations, the role of business culture in the company's downfall, and the potential impact of the Sarbanes-Oxley Act in reducing accounting irregularities.
Andersen's involvement in auditing companies accused of accounting fraud raises concerns regarding both legal and ethical aspects. From a legal standpoint, Andersen's audits of such companies would require a thorough examination of their financial records and practices to uncover any fraudulent activities. Ethically, Andersen should have maintained independence and objectivity in their audits, ensuring they were not influenced or compromised by the interests of their clients.
Andersen's business culture played a significant role in its downfall. The case points out an overemphasis on obtaining high-profile clients at any cost, which potentially compromised the integrity and objectivity of the firm's audits. Additionally, the employee reward scheme unintentionally encouraged wrongdoing, contributing to an environment where fraudulent practices could occur.
The Sarbanes-Oxley Act's provisions aim to enhance financial reporting transparency and accountability, which can help reduce the chances of auditors missing accounting irregularities. The Act introduced stricter regulations and requirements for auditors, including the establishment of an independent oversight board, mandatory rotation of audit partners, and increased penalties for fraudulent practices. These provisions promote independence, objectivity, and ethical behavior in auditing practices, reducing the likelihood of auditors turning a blind eye to accounting irregularities. By imposing greater accountability and oversight, the Act strives to enhance the reliability and accuracy of financial reporting, ultimately benefiting stakeholders and minimizing the occurrence of fraudulent accounting practices.
Learn more about Sarbanes-Oxley Act here:
https://brainly.com/question/32331510
#SPJ11
Related Questions
Cities in the United States and Canada experience many forces that change the form and character of metropolitan areas. Sometimes the changes are viewed as positive, and sometimes the changes may be seen as negative. Describe an economic force that encourages people to move into metropolitan areas. Explain ONE reason why suburbanization occurs in the United States and Canada. Explain ONE reason why gentrification occurs in the United States and Canada.
Answers
Answer:
In the U.s.a., gentrification is generally linked with an infusion of significantly higher migrants into traditionally divested districts with longstanding, operating people typically leading to rises in property values and new construction investment.
Gentrification in Canada is linked to a decrease in the supply of cheap rental housing, the relocation of the lower classes from their historic communities and the transformation of inner-city communities from production to consuming venues for the middleclass.
one reason why suburbanization and gentrification occur in the United States and Canada is that gentrification in the United States and Canada is commonly associated with an influx of much higher migrants into previously divested neighborhoods. suburbanization was prompted by federal government incentives to encourage suburban development.
What is Gentrification?Generally, Gentrification is simply defined as the process through which the character of a disadvantaged urban neighborhood is transformed by wealthier individuals moving there.
In conclusion, Gentrification and suburbanization cause a divide in society.
Read more about Gentrification
https://brainly.com/question/22777197
#SPJ5
If you are the buyer and your closing costs are 4% of the loan amount, how much will you pay if the loan amount is $200,000?
Answers
Answer:
$8,000
Explanation:
Closing costs are fees levied on mortgage takers. They are paid at the closing stages of a mortgage to cover the costs of transferring the title to the buyer and other expenses.
If the mortgage is $200,000 and closing costs at 4%, the actual amount to be paid as the closing cost will be,
= 4% of $200,000
=4/100 x $200,000
=0/04 x $200,000
=$8,000
Wes Ottey would like to buy an apartment in Sydney in six years. He is looking to invest $75,000 today in a share that is expected to earn a return of 18.3 percent annually. How much will he have at the end of six years? (Round to the nearest dollar.)
Answers
Answer: 82350
Explanation: I say this cause mathematically speaking 18.3% of 75000 = 13725, then multiplied by 6 (6 years) should be 82350. It does say the end of 6 years though but the end of 6 years isn't 7 years so I'd still say 82350 or something like that.
what is defined as enabling the continuous operation of critical government and business functions? a. a community lifeline b. unity of command c. nongovernmental organizations d. the private sector
Answers
The correct answer is a.a community lifeline. the term that is defined as enabling the continuous operation of critical government and business functions is "a community lifeline," which corresponds to
a. a community lifeline refers to the essential services, systems, and resources that are necessary for the functioning and resilience of a community during emergencies or disasters. these lifelines are typically categorized into sectors such as transportation, communications, energy, water, healthcare, food, and shelter.
enabling the continuous operation of critical government and business functions means ensuring that these lifelines are maintained and operational, even in challenging circumstances. it involves establishing plans, protocols, and coordination efforts to sustain these vital services during times of crisis.
unity of command ( b) refers to a principle of management or military operations where there is a single chain of command and clear lines of authority. it does not specifically address the continuous operation of critical functions in a community.
nongovernmental organizations ( c) are private, nonprofit organizations that operate independently of government control. while they may play a role in supporting community lifelines, they are not the specific definition of enabling continuous operation.
the private sector ( d) refers to businesses and organizations that are owned and operated by individuals or non-governmental entities. the private sector can contribute to sustaining critical functions, but it is not the exclusive definition of enabling continuous operation.
Learn more about business here:
https://brainly.com/question/15826604
#SPJ11
Arrange the steps of the decision-making process to solve a problem in the correct order.
Answers
Answer:
add, mutilply, subtract, and divide
Explanation:
i want to say that because we was taught that in school a special unique was taught to learn it
Answer:
see image for the exact answer
Explanation:
"Higher level professions require indepth knowledge, good skill, and special training." Explain this statement with examples.
Answers
Answer:
True.
Explanation:
Higher level professions are professions occupied by professionals who think strategically and carry out their duties by adhering to the ethical standards that governs their profession. Examples are medical practitioners, engineering, accountant and pilot. All these requires in-depth knowledge , good skill and special training because of the technical nature of the profession.
Having a degree is not enough to deliver on these professions because of their complexities. These professionals must adhere to the ethical standard that governs their profession and also hold themselves out of having the required training, knowledge and experience .
Take for instance a pilot who controls a plane. Asides having the required education, he would undergo special trainings on how to fly planes. He must also have the skills and experience of flying before being certified to fly people because of the risky nature of the profession.
The above example also applies to a doctor. He would undergo trainings depending on his area of specialization and must have knowledge before being certified to work as a doctor. The reason is that he is dealing with lives hence must possess the the required skills and experience.
Higher level professions require indepth knowledge, good skill, and special training because it determines the level of results such individual will produce.
What is a profession?A profession is a Job or occupation an individual is paid to do.
A professional in a profession is someone who has been involved in several trainings regarding the profession and most time have a formal qualification in such Job.
These experiences and trainings are to deliver good results or outputs at the place of work or designation.
Therefore, Higher level professions require indepth knowledge, good skill, and special training because it determines the level of results such individual will produce.
Learn more on profession here,
https://brainly.com/question/19472158
Suppose the DJIA stands at 25,200. You want to set up a long straddle by purchasing 100 calls and an equal number of puts on the index, both of which expire in three months and have a strike of 252. The put price is listed at $4.25 and the call sells for $5.25. a. What will it cost you to set up the straddle, and how much profit (or loss) do you stand to make if the market falls by 650 points by the expiration dates on the options? What if it goes up by 650 points by expiration? What if it stays at 25,200? b. Repeat part a, but this time assume that you set up a short straddle by selling/writing 100 Oct 252 puts and calls. c. What do you think of the use of option straddles as an investment strategy? What are the risks, and what are the rewards?
Answers
A. If the market stays at 25,200 at expiration, both the call and the put options will be out of the money, resulting in a loss of $950.
B. If the market stays at 25,200 at expiration, both the call and the put options will be in the money, resulting in a profit of $950.
C. Option straddles should only be used by experienced investors who understand the risks involved.
a) To set up the long straddle, we need to purchase 100 calls and 100 puts with a strike price of 252. The cost of the call is $5.25 and the cost of the put is $4.25.
Total cost of the straddle = (1005.25) + (1004.25) = $950
If the market falls by 650 points at expiration, both the call and the put options will be out of the money, resulting in a loss of $950.
If the market goes up by 650 points at expiration, both the call and the put options will be in the money, resulting in a profit of:
Call payoff = (252 + 650 - 252) * 100 = $65,000
Put payoff = (252 - 0 - 650) * 100 = $-40,800 (we do not exercise the option since it would result in a loss)
Total profit = $65,000 - $950 = $64,050
If the market stays at 25,200 at expiration, both the call and the put options will be out of the money, resulting in a loss of $950.
b) To set up the short straddle, we need to sell/write 100 Oct 252 puts and calls. The cost of the call is $5.25 and the cost of the put is $4.25.
Total premium received = (1005.25) + (1004.25) = $950
If the market falls by 650 points at expiration, both the call and the put options will be out of the money, resulting in a profit of $950.
If the market goes up by 650 points at expiration, both the call and the put options will be in the money, resulting in a loss of:
Call payoff = (252 + 650 - 252) * 100 = $65,000
Put payoff = (252 - 0 - 650) * 100 = $-40,800 (we are obligated to buy at the higher strike price)
Total profit = $950 - $40,800 + $65,000 = $24,150
If the market stays at 25,200 at expiration, both the call and the put options will be in the money, resulting in a profit of $950.
c) Option straddles can be an effective investment strategy when there is expected volatility in the underlying asset. The reward of a straddle is potentially unlimited if the stock price moves significantly in one direction. However, the risk is also significant because if the stock price remains relatively unchanged, the investor could lose the entire premium paid to set up the straddle. Additionally, if the investor sets up a short straddle, the potential losses can be unlimited if the stock price moves significantly in one direction. Therefore, option straddles should only be used by experienced investors who understand the risks involved.
Learn more about loss from
https://brainly.com/question/14150622
#SPJ11
influences of Business environment,
Answers
Factors that Influence the business environment are :
Economic environmentSocial environmentTechnological environmentPolitical environmentLegal environment
The business environment means the total of all the individuals, and institutions that could affect the working of the business firm.
Importance of business environment:
Business environments help the firm to prepare itself for every possible obstruction or hindrance that can affect the functioning of the firm.It also helps the firm to adjust to frequent changes.The economic environment is all the things that create an economic impact on the firm.
The social environment is all the traditions and customs of the society that creates an impact on the firm.
The technological environment is all the impact on the firm caused due to new technology and upgradations.
The political environment is the conditions and behavior that the elected representatives hold toward the business
The legal environment is entirely based on the rules and legislation of the authorities.
For more about Business Environment refer to the link : https://brainly.com/question/26589766
The president of state university wants to forecast student enrollments for this academic year based on the following historical data: year enrollments 5 years ago 15,000 4 years ago 16,000 3 years ago 18,000 2 years ago 20,000 last year 21,000 what is the forecast for this year using the naive approach?
Answers
last year 21,000 is the forecast for this year using the naive approach.
A forecast is a method of predicting the future primarily based on the consequences of the preceding information. It includes a detailed evaluation of past and gift traits or activities to expect destiny occasions. It uses statistical equipment and strategies. Therefore, it is also referred to as Statistical evaluation.
A typhoon in October 1859 that triggered the lack of the Royal charter stimulated FitzRoy to expand charts to allow predictions to be made, which he knew as "forecasting the climate", consequently coining the term "weather forecast".
Learn more about forecast
here https://brainly.com/question/24730207
#SPJ1
a 7oupon bond with an ask price of $100.00 pays interest every 182 days. if the bond paid interest 32 days ago, the invoice price of the bond would be: $1,005.67.
$1,007.35.
$1,006.35.
$1,006.15.
$1,007.12.
Answers
The invoice price of the bond after 32 days would be $1,006.15.
Face value of the bond= $1,000 Ask price of the bond= $100.00 Invoice price of the bond after 32 days= $1,005.67 Let's use the below formula to calculate the invoice price of the bond after 182 days: Invoice price of the bond= Ask price + Accrued Interest Substitute the given values, we get: 1005.67=100.00+ Accrued Interest Accrued Interest= 1005.67 - 100.00 Accrued Interest= $905.67 Let's use the below formula to calculate the semi-annual coupon payment: Coupon Payment= Face value of the bond coupon rate Coupon rate = 7% of $1,000= 0.07 * 1000= $70 Semi-annual coupon payment= $70 / 2= $35 Let's use the below formula to calculate the daily coupon payment: Daily coupon payment= Semi-annual coupon payment/ 182 days Daily coupon payment= $35/182= $0.19231 Hence, the invoice price of the bond after 32 days= Ask price + Accrued Interest = $100.00 + Daily coupon payment * 32 days = $100.00 + $6.15 = $1,006.15 Therefore, the main answer is $1,006.15.
The invoice price of the bond after 32 days would be $1,006.15.
To know more about Interest visit:
brainly.com/question/30393144
#SPJ11
Using one of the drive-based motivation theories, as described
by McShane, discuss how this experience is impacting Sophia’s
motivation.
Sophia Reddy is an accountant in her late 20s who works in the downtown Toronto office of Alicamber Ltd., a well- known accounting firm with two dozen offices across Canada. A few days ago, a senior m
Answers
Using the drive-based motivation theory of Maslow's Hierarchy of Needs, Sophia Reddy's current experience can be analyzed.
Maslow's Hierarchy of Needs is a five-level theory of human needs. Physiological needs, safety needs, love/belonging needs, esteem needs, and self-actualization needs are the five levels of Maslow's Hierarchy of Needs.
Sophianeedsmotivation to keep going at work and this motivation is impacted by her current experience at work. She is looking to fulfill her esteem needs as she is working for a well-known firm. Maslow's Hierarchy of Needs can be applied to Sophia Reddy's current situation at work.
As a result of the senior partner leaving and taking clients with them, she is experiencing a decrease in job security. This will impact her safety needs, which are at the bottom of Maslow's Hierarchy of Needs. In addition, the esteem needs, which are at the top of the pyramid, will be impacted by her lack of motivation.
Sophia wants to work for a well-known company, and the fact that the senior partner left and took clients with them may result in the company losing its reputation.
Furthermore, it appears that Sophia's job has become less meaningful and challenging, which is affecting her self-actualization needs, which is at the top of the pyramid. In conclusion, Sophia's motivation to continue at work is likely to be impacted by her job security, esteem needs, and self-actualization needs.
To know more about Maslow's Hierarchy of Needs click on below link:
https://brainly.com/question/31265223#
#SPJ11
distinguish between products tax and production tax
Answers
Answer:
Some examples of production taxes are land revenues, stamps and registration fees and tax on profession. Product taxes are paid on the actual volume of production. It is paid per unit of product. For example, excise duty, service tax, sales tax etc.
what is research analysis
Answers
Research analysis is the process of interpreting data that has been collected through research methods. It involves analyzing, interpreting, and evaluating the results of a research study to draw conclusions or develop insights.
Research analysis can be conducted using various methods such as qualitative and quantitative analysis. Qualitative analysis involves examining non-numerical data such as interviews, observations, and text, while quantitative analysis involves analyzing numerical data using statistical techniques. Both methods can provide valuable insights into a research question, and the choice of method depends on the research question, research design, and data collected.
Research analysis involves several steps such as cleaning and organizing data, identifying patterns, trends, and relationships within the data, and interpreting and drawing conclusions based on the data. It also involves identifying potential biases or limitations in the data and addressing them appropriately. In summary, research analysis is a critical component of the research process as it helps researchers to make sense of their data and draw meaningful conclusions from their findings.
For more such questions on Research
https://brainly.com/question/29685892
#SPJ11
Which technique of advertising shows that multiple consumers use a product to build consumer trust in the product?
Answers
Answer:
don doing it for 5 point give 100 then ill think abt it
Explanation:
Lightskins or Darkskins
Or Other ?
Answers
Answer:
any kind of boy
Explanation:
I have no type
If for a firm MRP > MFC, then the firm:______.
a. is maximizing profits and should continue producing its current output.
b. should produce less output by decreasing the quantity of factors employed.
c. should produce more output by increasing the quantity of factors employed.
d. is minimizing factor costs and therefore is maximizing profits.
Answers
Answer:
b
Explanation:
because this should be mfc and I see to book the mrp and I see the answer ty
hope it's helps make me brainless tyy
Which of the given factors is an assumption of perfect competition? Firms sell differentiated goods. There are high barriers to entr;y O There are a large number of producers in the market. O Firms have price setting power.
Answers
The factor that is an assumption of perfect competition is "there are a large number of producers in the market." The other factors listed are not assumptions of perfect competition.(option c)
What do you mean by perfect competition?In a perfectly competitive market, there are many firms producing identical products, leading to no individual firm having price-setting power, low barriers to entry, and no product differentiation.
According to economic theory, perfect rivalry exists when all businesses sell the same goods, market share has no bearing on prices, businesses can enter or quit the market without any obstacles, consumers have perfect or complete information, and businesses are unable to set prices.
A perfect market, formerly known as a market of atoms, is characterized by various idealising conditions, which are together referred to as ideal rivalry, or atomistic competition, in economics, particularly general equilibrium theory.
To know more about perfect competition visit:
https://brainly.com/question/29635630
#SPJ11
Complete question: Which of the given factors is an assumption of perfect competition?
a) Firms sell differentiated goods.
b) There are high barriers to entry
c) There are a large number of producers in the market.
d) Firms have price setting power.
Help this is super confusing
Answers
Answer: Reasons
Explanation: Crystals are collected for jewelry, sugar, salt, computer chips. So if it shows you all those examples it would be collected for many reasons. I hope this helped!
2. What are some banks, non-banks, technology and retail companies? Name 1 of each and explain what they are and what they do?
Answers
Banks are businesses that provide a range of financial services, such as mortgages, savings accounts, and loans. JPMorgan Chase, one of the biggest banks in the US, is an illustration of a bank. Financial services offered by JPMorgan Chase include banking, investing, and credit card services.
What are retail companies?Businesses that sell goods directly to customers are known as retail companies. Walmart, one of the biggest retailers in the world, is a good example of a retail business. Walmart runs a network of grocery stores, discount department stores, and hypermarkets and provides customers with a variety of goods and services.
Companies that provide financial services but lack a banking license are known as non-bank financial institutions. American Express, a provider of credit cards, debit cards, and other financial services, is one example of a non-bank financial institution.
Therefore, banks, non-banks, technology, and retail companies are stated above.
Learn more about Retail companies, here;
https://brainly.com/question/24956502
#SPJ1
what can be viewing an ad for a hotel while playing a game on your phone.
Answers
Answer: Viewing an ad for a hotel while playing a game on your phone can be categorized as M-commerce.
Explanation: M-commerce, short for mobile commerce, refers to the buying and selling of goods and services through mobile devices, such as smartphones or tablets. It involves conducting commercial transactions using mobile apps, mobile-optimized websites, or other mobile platforms.
In the given scenario, you are playing a game on your phone and encounter an advertisement for a hotel. This implies that you are using your mobile device to engage with commercial content, making it an example of M-commerce. The ad is likely displayed within the game or through a mobile app, providing you with information about a hotel and potentially allowing you to make a booking or explore further details using your mobile device.
M-commerce has become increasingly prevalent due to the widespread use of mobile devices and the convenience they offer. It allows businesses to reach customers directly on their mobile devices, providing a seamless and accessible shopping experience.
FILL IN THE BLANK. Electrical forces ____.
(static electricity)
a. can cause objects to only attract each other
b. can cause objects to only repel each other
c. can cause objects to attract or repel each other
d. have no effect on objects
Answers
Electrical forces can cause objects to attract or repel each other.
Option C is correct.
Electrical forces are one of the fundamental forces of nature that govern the behavior of electrically charged particles, such as protons and electrons. These forces arise due to the interaction between the electrically charged particles and are responsible for the attraction or repulsion of particles.
The strength of the electrical force is determined by the magnitude of the charge on the particles and the distance between them. Like charges (i.e., positive-positive or negative-negative) repel each other, while opposite charges (i.e., positive-negative) attract each other. The magnitude of the force decreases as the distance between the particles increases.
To know more about Electrical forces. here
https://brainly.com/question/30236242
#SPJ4
Which of the following factors would make the demand for a good elastic?
The good is a necessity.
The consumer does not have much time to shop for alternatives.
The good has many substitutes.
The good is only produced by one company, a monopoly.
Answers
Answer:
The god has manmyuuuu substitustes
Explanation:
What is this? Please help!!!
Answers
Answer:
I would go with C but not completely positive
Explanation:
C is the only one that makes sense to me when it’s asking for an observation.
when producing a 3tb portable hard drive, fixed costs are $20,000,000 regardless of sales volume. variable costs are $25 per unit and the unit price of the portable hard drive is $50.] finally, julie wants to consider the case of the target return of $40 million. fixed costs, variable costs per unit, and price remain the same. in such a case, total cost is
Answers
When manufacturing a 3TB portable disk drive, the overall revenue is $80 million and fixed expenses are $20,000,000 of sales volume. The compact hard drive has a unit price of $50 and variable expenses of $25 per unit.
The definition of revenueBecause it appears there at top both the commonly used to calculate and is occasionally referred to as total profits, revenue is usually referred to as the "fourth line." The overall revenue or profit that a business makes is known as income, also referred to as net income.
What types of revenue are there?The word income is commonly used in place of revenues. Examples of revenue accounts include sales, service revenues, earning fees, interest revenues, and interest income.
To know more about revenue visit:
https://brainly.com/question/28558536
#SPJ4
which trend has the following potential business impact? demand for personnel in distant countries will increase the need for foreign language training, employee incentives suited to other cultures, and many other aspects of performing business globally.
Answers
The Correct answer is D. The time to get products and services to market is being shortened by technology. The global economy is becoming more integrated.
The worldwide economy can be defined as the sum of activities that take place both inside a rustic and between one-of-a-kind international locations. each u. s. a . is a separate unit, with its own industrial manufacturing, hard work marketplace, financial market, sources, and surroundings. Economists generally agree that monetary development and increase are stimulated through four factors: human resources, bodily capital, natural sources, and generation. fantastically advanced nations have governments that concentrate on these regions.
Ability blessings of globalization for the financial system include multiplied choice, higher pleasant products, expanded opposition, economies of scale, improved capital flows, multiplied labor mobility, and improved international relations. The global economy affects anyone in the international. It creates jobs and provides human beings with all of the assets they want.
To learn more about the Global economy visit here:
brainly.com/question/1311866
#SPJ4
Complete Question:
Which trend has the following potential business impact? Demand for personnel in distant countries will increase the need for foreign language training, employee incentives suited to other cultures and many other aspects of performing business globally.
A) The growth in information industries is creating a knowledge-dependent global society
B) Pace of technological innovation is increasing
C) The economy and society are dominated by technology
D) The global economy is becoming more integrated
Excited to buy her dream car, Molly rushes into her local Volkswagen dealership. Molly picks out a
car, sits down at the financing desk, and hears the following:
"Well, we ran your credit history. You've got a really thin file -- just a year's worth of student
loan payments. The deal you saw was for 'well qualified buyers. The best deal we can offer
you is 6.6% for 60 months. A little more bad news -- the cash allowance is also based on
credit history, so you don't qualify for $500. That said, you're excited about a Volkswagen,
and I want to see you driving one, so I can do $400 for you!"
9. Molly still has a $2500 down payment. How much loan does Molly need?
10. How much will Molly's monthly payment be using the Bankrate calculator?
11. How much total interest will molly pay using this plan?
12. How many is the total cost of her car after all together?
Answers
9. The amount of loan that Molly needs with a $2,500 down payment is $22,100.
10. Molly's monthly payment is $433.
11. The total interest Molly will pay under this plan is $3,907.
12. The total cost of Molly's car is $28,507.
Loan Amount:Required cash allowance = $500
Qualified cash allowance = $400
Down payment = $2,500 (typically 10% of value)
Total price of car = $25,000 ($2,500/10%)
Loan required = $22,100 ($25,000 - $2,500 - $400)
Interest and Periodic Payment:N (# of periods) = 60 months
I/Y (Interest per year) = 6.6%
PV (Present Value) = $22,100
FV (Future Value) = $0
Results:
PMT = $433.45
Sum of all periodic payments = $26,007
Total Interest = $3,907
Total Cost of the car to Molly:Down payment = $2,500
Total periodic payments = $26,007
Total cost = $28,507 ($26,007 + $2,500)
Learn more about periodic payments at brainly.com/answer expert verified
#SPJ1
Immediately after taking office, President Roosevelt responded to the banking crisis by a restoring the gold standard to guarantee the soundness of American currency. b providing major federal loans to the largest and soundest banks. c nationalizing the ten largest banks in the United States. d establishing a new Bank of the United States to guarantee deposits. e closing all American banks for a week, while reorganizing them on a sounder basis
Answers
E:Managing the currency by closing down banks for a period of time
Grants are typically awarded based on
Answers
Answer:
Grants are awarded based on Demonstrated Financial Need. Demonstarted Financial Need is based on the cost to attend college as well as how much the family will contribute.
__________________________________________________________
Questions?Ask in the comments box.
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,000 per month for the next three years and then $2,000 per month for two years after that. If the bank is charging customers 7. 5 percent apr, how much would it be willing to lend the business owner?.
Answers
The amount bank will be willing to lend = $67,662.7
How is the amount calculated?Present value of annuity=Monthly Payments× [1- \(\frac{1}{(1+r)^n}\) ] ÷ r
where,
Monthly payments = $1,000
r = Rate of return = 7.5% / 12 = 0.625%
n = Number of periods = 3 ×12 = 36
Present value of annuity=$1,000×1− [\(\frac{1}{(1 + 0.00625)^3^6}\) ] ÷ 0.00625
Present value of annuity=$32,147.91
Calculation of the present value of annuity for the next two years:
Present value of annuity=Monthly Payments× 1− \(\frac{1}{(1+r)^n}\) ÷ r
where,
Monthly payments = $2,000
r = Rate of return = 7.5% / 12 = 0.625%
n = Number of periods = 2 ×12 = 24
Present value of annuity
=$2,000×1−[\(\frac{1}{(1 + 0.00625)^2^4}\) ] ÷ 0.00625
Present value of annuity=$44,444.85
Now, lets calculate the present value:
Future value = $44,444.85
Rate of interest = 7.5% / 12 = 0.625%
Number of periods = 3 * 12 = 36
Present value=Future value∗1/(1+Rate of Interest)^Number of periods
Present value=$44,444.85∗1/(1+0.00625)^36
Present value=$35,514.79
The amount bank will be will to lend = Present value of annuity for the first three years + Present value
The amount bank will be will to lend = $32,147.91 + $35,514.79
The amount bank will be will to lend = $67,662.7
To learn more about Present value of annuity, refer
https://brainly.com/question/25792915
#SPJ4
Rational decision-making ignores any consideration of:
A. opportunity costs.
B. monetary costs.
C. sunk costs.
Answers
Rational decision-making ignores any consideration of sunk costs which is option C.
Money that has already been spent and cannot be recouped is known as a sunk cost. The sunk cost phenomenon in business is an example of the notion that one must "spend money to make money." A sunk cost is distinct from potential future expenses a company can incur, such choices on the price of products or the cost of purchasing inventories. Sunk expenses are disregarded while making future business decisions since they won't change regardless of the choice made.
Money that has already been spent and cannot be recouped is referred to as a sunk cost. A manufacturing company, for instance, may have a variety of sunk expenses, including the cost of machinery, equipment, and facility leasing payments. A sell-or-process-further choice, which refers to things that may be sold as-is or can be processed further, excludes sunk costs.
Organisations should only take into account relevant expenses—including any future expenditures that still need to be incurred—when making business choices. The related expenses and the possible earnings of various options are compared.
Learn more about Sunk costs:
https://brainly.com/question/29488541
#SPJ4