Respuesta :
Answer:
The amount should the company record the land on the date of purchase is $534,870
Explanation:
Given the principal amount, P = $450,000
Interest = 9%
Time, T = 2 years
According to simple interest,
Amount = [tex]P(1+\frac{r}{100})^2[/tex]
Substituting the values,
Amount =[tex]450000(1+\frac{9}{100})^2[/tex]
Amount = [tex]450000\times \frac{109}{100} \times \frac{109}{100}[/tex]
Amount = $534,870
Therefore, the amount is $534,870
Cost 450,000
2 years time
9% interest
Calculation
= 450,000 + (9% (40,500) x 2 years)
= 450,000 + 81,000
= 531,000
Further Explanation
Theoretically, the relationship between interest rate movements and stock price movements is inversely proportional, which means that when bank interest rates increase, the price of shares traded on the stock exchange will tend to decrease because investors choose to invest in banking instruments, for example, the deposit.
Debt is an inseparable part of the company's operational activities, and this makes the increase in loan interest rates will certainly add to the burden of costs that must be borne by the company.
High or low-interest rates are the price of the use of money for a certain tenor or period or are the price of the use of money borrowed and will later be returned in accordance with the agreement.
Changes in interest rates will cause fluctuations in the price of securities, especially those that provide fixed income, such as bonds.
There are two types of bonds, namely bonds made and issued by the government and bonds made by companies.
For the second type of bond, there are at least two risks, namely the risk of failure and interest risk, it is caused by the possibility of the company going bankrupt.
Learn More
Interest rate https://brainly.com/question/13868903
Bond https://brainly.com/question/13868903
Details
Grade: College
Subject: Business
Keyword: interest, bond, low-interest
