A company sells bonds when it wants to borrow money directly from the public to pay for new equipment.
When a company has financial difficulties, bondholders are compensated first. Private savings must be $12,500 if investment in an imaginary closed economy is $10,000 and the government has a $2,500 deficit.
If the government increased the tax on savings interest income, what would happen to the market for loanable funds?
Savings become less appealing if interest income is taxed. This will prompt a decrease in saving and subsequently, the stockpile of loanable assets.
Which of these factors determines the amount of money available for loans?
Savings provide the source of available funds for loans. Borrowing drives the demand for funds that can be loaned. The real interest rate and the amount of money loaned are determined by the interaction between the demand for loans and the supply of savings.
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consider the many steps involved in how most people get their food in modern societies (e.g., steps involving everything from farms to factories to stores). this process is a good example of .
This process is a good example of putting people first.
Putting people first is a mindset supported by a set of activities that puts the needs of an organization's employees ahead of all other considerations, including shareholder value and profits, even if it requires personal sacrifices from leaders.
What does it mean to prioritize people?Today's workers have different perspectives on their jobs than they did even a few years ago, and the modern workplace needs to reflect this. A "people-first" strategy entails intentionally fostering an atmosphere that is both appealing and meets the demands of one of your most valuable resources: your employees.
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Which system is quick, impulsive, and intuitive, relying on emotions or habits to provide cues for what to do next?.
Reactive systems are prompt, impulsive, and intuitive; they rely on feelings or routines to give them indications about what to do next.
In contrast to the reactive system, which is rapid, impulsive, and intuitive and relies on emotions or habits to give indications as to what to do next, the reflective system is logical, analytical, deliberate, and meticulous. According to neuropsychological research, the brain can only use one feelings information-processing system at a time [Darlow & Sloman] and that the two systems are controlled by various regions of the brain.
From an evolutionary standpoint, the basal ganglia and amygdala (more primitive portions of the brain) are more involved in the reactive system, Reactive systems whereas the prefrontal cortex is more involved in the feelings reflective system.
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Equipment costing $20,000 with $17,800 of accumulated depreciation is sold for $2,500 cash. The journal entry will involve a ________.
Debit to accumulated depreciation . $1,050.
A natural credit balance is accrued depreciation. Accumulated depreciation lowers the total value of assets recognized on the financial statement even though it is listed in the asset portion of the balance sheet since assets are fundamentally debit accounts.
How does accumulated depreciation work?A natural credit balance is accrued depreciation. Accumulated depreciation lowers the total value of assets recognized on the financial statement even though it is listed in the asset portion of the balance sheet since assets are fundamentally debit accounts.As a contra-asset account, the balance sheet. A contra-asset account called accumulated depreciation appears on the balance sheet below the account Property and Equipment.The value at which a firm records an asset on its balance sheet is known as net book value, sometimes known as net asset value. It is determined by subtracting accumulated depreciation, accumulated amortization, accumulated depletion, or accumulated impairment from the asset's initial cost.To learn more about Accumulated depreciation refer to:
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1) how much money must you deposit now at 6% interest compounded quarterly in order to be able to withdraw $3,000 at the end of each quarter year for two years?
Amount to be deposited now at 6% interest computed quarterly in order to be able to withdraw $3,000 at the end of each quarter year for two years is $22,457.78.
No. of payments / Compounding per year = 4
Amount per quarter = $3,000.00
No. of years = 2
Annual rate = 6.00% = 0.06
Quarterly rate = 0.06/4 = 0.015
Total No. of payments = 2 × 4 = 8
Amount to be deposited today = $22,457.78
The fee paid for the right to borrow money is called interest. In contrast to how the interest rate used to compute interest is normally expressed, which is as an annual percentage rate, interest expense or revenue is frequently expressed as a dollar figure (APR). Interest is the payment a lender or financial organization makes in exchange for extending credit. A stockholder's ownership stake in a corporation, which is typically expressed as a percentage, is another definition of interest.Learn more about Interest, here
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the forced distribution method lists the employees being rated from highest to lowest based on their performance levels and relative contributions. question 31 options: true false
True The rater must force employee evaluations into a bell-shaped curve when using the forced distribution performance appraisal rating method.
What is forced distribution?
The rater must force employee evaluations into a bell-shaped curve when using the forced distribution performance appraisal rating method. To learn more, go to Managing Employee Performance.
swiftly and easily Another benefit of this approach is that it is a quick and simple model to comprehend and use. Due to the grouping of all employees, HR finds it very easy to tailor development programs to the right abilities.
Poor employee morale is frequently a result of forced distribution. Many workers who are in the middle of the corporate ladder believe they should be higher. Particularly hard-working employees get upset over not being in the top categories. The system may also result in a decline in corporate talent.
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what is the purchase price (present value) of a car if you make equal annual payments of $6,000 over 4 years compounded annually at 9%, rounded to the nearest $1?
The car costs $19438.32, so the current price is 19,438.32. However, if you make annual payments, you must pay interest at a compounded rate of 9%.
How Does Compound Interest Work?The interest on savings that is calculated based on both the initial principal and the interest that has accumulated over previous periods is called compound interest.
It is believed that Italy in the 17th century invented "interest on interest," also known as the power of compound interest. It will grow a sum more quickly than simple interest, which only takes into account the principal.
Money grows rapidly through compounding, and the greater the number of periods of compounding, the greater the compound interest.
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navarro, inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. the bonds will have a ytm of 4.89 percent and mature in 15 years. if we assume semiannual compounding, at what price will the bonds sell?
Bonds will be offered for $484.84 per unit.
Bond value = F = $1,000
Yield to maturity is equal to y, which equals 4.89 % annually,
4.89 x 6/12, or 2.445% semiannually.
Years = 15 years (t years)
15 times 2 equals 30 periods of compounding.
To get the bond's value, use the formula below.
P = F/ (1+y^3)
P = 1000/ (1 + 2.445 ^30)
P = $484.84
Due to the bond's Zero Coupon rate, it will sell today for $484.84
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When employees strive to see things from the customer's viewpoint, it helps the business build positive customer/client relations because the employees
It is true that When employees strive to see things from the customer's viewpoint, it helps the business build positive customer/client relations because the employees.
What is the benefit derived When employees strive to see things from the customer's viewpoint?The benefit derived When employees strive to see things from the customer's viewpoint is that it will help them to have a good relationship between the consumer as well as the employee.
And it should be noted that when there is a good relationship between the consumer as well as the employees, the firm will be able to get a detailed as well as honest feedback from those customers and with all these feedbacks the firm will be able to use the feedback to improve the products as well as he services that is been produced by the company so that tthe company can make more profits as a result of the continual patronzation of the costomers.
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Check the complete question:
TRUE/FALSE When employees strive to see things from the customer's viewpoint, it helps the business build positive customer/client relations because the employees
rhino airlines uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. the cost formula for plane operating costs is $36,330 per month plus $2,076 per flight plus $1 per passenger. the company expected its activity in november to be 93 flights and 243 passengers, but the actual activity was 92 flights and 248 passengers. the actual cost for plane operating costs in november was $226,310. the activity variance for plane operating costs in november would be closest to:
The activity variance for plane operating costs in November would be closest to $3331
How to calculate Operating cost?
Cost of goods sold plus operating expenses are used to calculate operating cost. Administrative and office costs including rent, employee salaries, insurance, directors' fees, etc. are included in operating expenses. advertising and salesman salaries are examples of selling and distribution costs.
Operating cost for actual activity:
=$36,330 ($2,076 per flight × No. of flights)+ ($1 per passenger × No. of passenger)
=$36,330 ($2,076 per flight ×93 ) + ($1 per passenger ×243 )
=$36,330 + $193068 + $243
=$229641
Activity variance:
= Operating cost for actual activity - Actual cost for plane operating costs
=$229641 - $226,310
=$3331
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by creating its own direct sales force, a company can multiple choice question. reduce materials handling and shipping costs. eliminate middle management. circumvent the need for distributors or dealers. outsource certain value chain activities.
By creating its own direct sales force, a company can eliminate middle management.
Management is the administration of an corporation, whether it's far a enterprise, a non-earnings business enterprise, or a government frame. it's far the artwork and science of dealing with resources of the enterprise.
The management definition is a unmarried or group of folks who demanding situations and oversees a person or collective group of human beings in efforts to perform desired goals and goals. moreover, the definition of management consists of the potential to devise, arrange, display and direct individuals.
Inside the only of phrases, commercial enterprise control refers to the coordination and management of commercial enterprise sports, obligations, and sources to attain a fixed objective. This regularly entails supervision and education of team of workers, overseeing middle operations, and designing employer infrastructure to optimize for the destiny.
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concerning sources of agency revenues, the following apply select one: a. most of the revenue comes from a combination of car rentals and cruises b. cruises and tours produce the best commissions c. airlines are no longer a source of revenue d. hotel, rail, car rentals and cruises predominate e. none of the above is correct
The best commissions come from tours and cruises.
The ideal answer is B.
What are the sources for the travel company?The commissions that a retail travel agency receives from the suppliers are its principal source of income. The rate of commission varies, though, depending on the organization and the specific travel component.
Who built the earliest roads the best?The Romans were the most meticulous road builders in antiquity, and they were acutely aware of... Roman roads stand out for their precision, sturdy construction, cambered surfaces that aid in drainage, and use of concrete manufactured from pozzolana (volcanic ash) and lime.
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Additional benefits such as health insurance, retirement benefits, or life insurance that are paid by the employer are called benefits.
Additional benefits such as health insurance, retirement benefits, or life insurance that are paid by the employer are called perk benefits.
In a job, all those benefits that you get from a job other than your basic salary is referred to as perk benefits.
It is upon the company for which you that which type of perks they offer. Sometimes, a company might not be offering any perks and just the basic salary.
Perk benefits from a job include health insurance, money at the time of retirement, bonuses etc.
When applying for a job, a company might or might not mention about the perk benefits. However, you can ask about them during the interview.
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if a tobacco farmer faces price inelastic demand and voluntarily does not plant tobacco on 15% of their land then what scenario would happen? responses
If a tobacco farmer faces price inelastic demand and voluntarily does not plant tobacco on 15% of their land then the price of tobacco would increase and the farmer would be better off.
What is tobacco?
Tobacco is the common name for numerous plants in the genus Nicotiana of the Solanaceae family, as well as the umbrella word for any product made from the cured leaves of these species. There are over 70 tobacco species identified, but N. tabacum is the most important commercial crop. In some areas, the more potent variety N. Dried tobacco leaves are commonly used in cigarettes, cigars, pipes, as well as shishas. They are also available in snuff, chewing tobacco, dipping tobacco, and snus form.
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a country's trade balance will fall if either a. investment falls or saving rises. b. investment or saving rise. c. investment or saving fall. d. saving falls or investment rises.
A country's trade balance will fall if either d. saving falls or investment rises.
What is trade balance?Balance of trade can be described as the term that is been used by the economist to described the difference that exist between the value of a country's exports a well as the the value of a country's imports .
It should be noted that this is been given over the particular period of time however the Balance of trade can be described as the wide component of a country's balance of payments .
In conclusion, the Balance of trade helps in knowing how the country is doing in terms of the economy , it help to know about the export that the country is making and compare with the imports that the country is making, since when the exports that can be attributed to the country is bigger than the imports the then country is doing fine.
Therefore, option D is correct.
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allowance for doubtful accounts has an unadjusted balance of $500 at the end of the year, and an analysis of accounts in the customers' ledger indicates doubtful accounts of $15,000. compute the adjusted balance in the allowance for doubtful accounts?
In order to compute the adjusted balance in the allowance for doubtful account :
1. Increase Uncollectible Accounts Expense, 14,500
2. Increase Allowance for Doubtful Accounts 14,500
Accounts receivable are linked to a contra-asset account called the allowance for questionable accounts, which is used to reflect the actual worth of those accounts. The sum is the projected value of accounts receivable that a business doesn't anticipate being paid for
With an offset to bad debt charge, the allowance is created in the same financial year as the initial transaction. The two most popular methods for estimating uncollectible accounts are the percentage of sales technique and the accounts receivable aging method.
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a company generates revenues of $120 million, gross profit of $70 million, operating income of $50 million and net income of $24 million. it has 10 million shares outstanding. what is the company's operating margin? answer in percent, rounded to one decimal place.
A business generates $120 million in revenue, $70 million in gross profit, $50 million in operational income, and $24 million in net income. There are 10 million active shares. The operational margin of the business.
The business's retained earnings for Year 8 would be $20 million and its EPS for Year 8 would be $2.50. The company's total earnings for Year 8 would be $10 million (net income of $50 million less interest charges of $10 million less dividend payments of $30 million = $10 million) if we calculate EPS and retained earnings. In Year 8, the corporation would have an EPS of $2.50 and $20 million in retained earnings (net income of $50 million less dividend payments of $30 million). the business's credit standing would be no less than an A as operating profit exceeds annual interest expenses by a factor of seven.
The company's retained earnings for Year 8 would be $10 million (net income of $50 million less interest costs of $10 million less dividend payments of $30 million). Its EPS for Year 8 would be $5.50. The operational profit of $70 million less interest expenses of $10 million, less dividend payments of $30 million, or $30 million divided by 20 million shares, would result in the company's EPS for Year 8 being $1.50 operational income.
Now, the query can be responded to as follows: business
We may calculate the following from the question:
EPS is calculated as Net Income / Outstanding Common Stock, which is $50 million / 20 million shares, or $2.50.
Dividend payments equal the number of outstanding shares of common stock Dividend per share equals 20,000,000 * $1.50, or $30,000,000.
Net income minus dividend payments equals retained earnings, or $50 million minus $30 million, or $20 million.
The company's retained earnings for Year 8 would be $20 million (net income of $50 million less dividend payments of $30 million) and its EPS for Year 8 would be $2.50 (B) operational income.
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Merit scholarships can be awarded for high gpas or test scores, honors recognition, leadership roles and _____.
Merit scholarships can be awarded for high GPAs or test scores, honors recognition, leadership roles, and community service.
What does a merit-based scholarship mean?Academic, athletic, and artistic achievement are the usual criteria used to award merit scholarships, along with personal interests. Some merit scholarships take into account financial necessity as well, although recognizing skill is the main goal.
For the most part, merit-based rewards require strong academic performance, challenging coursework, and high scores on the SAT or ACT, all of which can help you stand out from the competition. What will set your application apart from the competition is the scholarship essay you submit.
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you own a small manufacturing business that produces widgets. you have spent $150,000 acquiring the fixed assets you need to produce widgets. each widget costs you $2 to make and they sell for $15 each, so your variable cost is 13.3% of the overall revenue. at your current level of operating leverage, how many widgets must you sell to break even? 13,482 19,950 11,539 10,000
11,539 widgets must be sold in order to achieve break-even at the current operating leverage.
How does operating leverage work?A cost-accounting technique called operational leverage assesses how much a company or project can raise operating profitability by raising revenue. High operating leverage companies have low variable costs and high gross margins when generating revenue.
You must finish the operational leverage calculation to determine the price at which to make a profit and pay your expenses. Additionally, it can assist you in comprehending the efficiency with which your company can generate profits by making use of fixed-cost assets like machinery or storage facilities.
Calculation:
Due to this:
$150,00 for fixed assets
Sales price = $15 Variable cost = $2
The contribution margin minus fixed costs equals the break-even point.
Sales per unit less variable cost per unit ($15-$2=$13) equals contribution margin.
Break-even point (Sales) is $150,000 divided by $13 to equal 11,539 units.
Therefore, in order to break even, 11,539 widgets must be sold.
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a property management contract is between the property manager and: select one: a. his or her employees b. the property owner c. the tenants d. the broker
A property management contract exists between the property manager and the property owner.
What is property management?The operation, control, maintenance, and oversight of real estate and physical property is known as property management. Residential, commercial, and land real estate are all examples of this. A third-party contractor oversees the daily operations of residential, commercial, or industrial real estate. Property managers are generally in charge of day-to-day repairs as well as ongoing maintenance, security, and upkeep of properties. Property managers are responsible for setting and collecting rent, handling maintenance requests, filling vacant units, and potentially setting the property's budget. Property managers frequently look after properties that real estate investors do not live near or do not want to manage themselves.To learn more about property management, refer to:
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m2 has grown faster than m1 because of the growth of:multiple choice question.traveler's check and debit cards.large-denomination time deposits and cd funds.credit cards and electronic payments.small-denomination time deposits and money market funds.
M1 plus retail money market mutual funds, small-denomination time deposits, savings deposits, and deposits.
Money supply is measured by M2. M1 and near money are part of it.
Near money is made up of highly liquid, non-monetary assets that can be quickly converted to cash.
The definition of money in M2 is broader than M1's.
Money in circulation, traveler's checks, funds in checking accounts, and funds deposited in banks are all included in M1.
Savings accounts, mini-time deposits, and money markets are all included in M2.
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kiran needs additional short-term financing for his robotics company, so he asks his suppliers if they could issue a discount if he pays his bills early. what type of financing resource is kiran using? factoring barter peer-to-peer lending trade credit
The type of financing resource that Kiran is using trade credit.
What is trade credit?When products and services are purchased on credit, one merchant will lend money to another. Supply purchases can be made with trade credit and delayed payment. Organizations in the business world frequently use trade credit as a form of short-term funding. It is given to clients with a respectable level of financial standing and goodwill.
Trade credit comes in a variety of widely used formats. The use of customized forms varies across sectors. They all have in common how firms work together to deploy money effectively to achieve diverse business goals.
Most business-to-business (B2B) sellers in the US use trade credit as their primary source of capital and as their greatest method of capital expenditure.
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why is the ask price higher than the bid price? multiple choice it represents the gain a market maker achieves. it represents the gain the stock seller achieves. it represents the gain the stock buyer achieves. it represents the gain all participants will achieve
Normally, a security's ask price ought to be more than its bid price. This is due to the investor's customarily expected behavior of never selling a security (at a lower asking price) than they are willing to pay for it (bidding price).
The highest price a buyer will pay to purchase a specific number of shares of stock at any particular time is referred to as the "bid." The lowest price a seller will accept for the stock is referred to as the "ask." Almost invariably, the bid price will be less than the ask, or "offer," price. The bid-ask spread is the distinction between the bid and ask prices. The broker will profit from this discrepancy. or professional managing the transaction. The bid is the price a buyer is prepared to offer for the stock. Almost always, this cost is less than the Ask. The Ask is the price at which the seller is prepared to offer to sell the shares. We would be able to purchase the shares at the bid price in an ideal scenario, but that is rarely feasible. The lowest price at which the dealer is willing to sell the security is the "ask" price. Once more, the dealer's readiness to sell at a premium price is in exchange for making the sale. If the buyer were willing to accept a yield that was equal to or less than the ask yield, the bid yield would be higher than the ask yield. The bond would subsequently be sold by the seller to the buyer for the equivalent price, or the ask yield.
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write a proposal that promotes ideas for improving the project management communication at your place of work. . the audience for your proposal is your management. your proposal can include charts, graphs, tables and photographs. the length should be 1,000 words /- 10%. longer is not necessarily better, but it should not be fewer than 900 words and no longer than 1100 words.
Every project's success is largely dependent on efficient communication between the team leader and the team members. The following communication techniques can thus be used to manage the project:
Increase the number of open meetings since, with this approach, project management team members may debate among themselves what the project's goal is. How are we going to do it? , how far along is the project right now? etc. Speaking and listening to one another in this situation can result in efficient communication.One-on-one conversations take place when you wish to provide someone sensitive or confidential information. because not every piece of information needs to be disclosed to everyone. One-on-one conversations are crucial for the management of the project in order to retain confidentiality.Participants in a communication training or program can hone their verbal, listening, and thinking abilities via structured or informal activities like games and puzzles. They can enhance their learning with the aid of this program.Every project team member needs to connect with one another in order to identify problems and find solutions quickly, making interactive strategy extremely important. For project team management, solitary people are a drawback.Learn more about Communication, here
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assuming the interest rate is 6 percent, which of the following has the greatest present value? a. $300 paid in two years b. $100 paid today plus $100 paid in one year plus $100 paid in two years c. $150 paid in one year plus $140 paid in two years d. $285 today
$285 today has the greatest present value assuming the interest rate is 6 percent. This is due to time value of money.
Any dollar paid today has more value.
The time value of money is a finance rule that states that the present value of a dollar is greater than the future value of a dollar.
This ideology holds true since invested money today can possibly grow into a larger sum in the future.
The time value of money is used to make long-term strategic financial decisions including whether to allocate resources in a project or even which cash flow sequence is most advantageous.
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on january 2, 2021, howdy doody corporation purchased 12% of ranger corporation's common stock for $50,000. during 2021, ranger had net income of $100,000 and declared and paid a dividend of $60,000. on december 31, 2021, the fair value of the ranger stock owned by howdy doody had increased to $70,000. how much should howdy doody show in the 2021 income statement as income from this investment?
The amount that Howdy Doody shows in the 2021 income statement as income from this investment will be:
= $60,000 × 12%
= $60,000 × 0.12
= $7,200
A agency's stability sheet might also show the budget it has invested in different organizations. Investments seem on a balance sheet in numerous methods: as not unusual or preferred stocks, mutual price range, and notes payable. Occasionally they are made to position extra coins to work for quick periods.
An investment is an asset or item obtained with the intention of generating earnings or appreciation. Appreciation refers to an increase in the fee of an asset through the years. While individual purchases a good as funding, the cause is not to devour the best but rather to apply it in the destiny to create wealth.
An investment is an asset or object accrued with the goal of producing income or reputation. In an economic outlook, an investment is the purchase of goods that aren't fed on today but are used in the destiny to generate wealth.
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Brianna is an intern working for a Mississippi state senator. She helps the senator draft new laws that will affect citizens in the whole state. Brianna's job falls into the _____ pathway of the Government and Public Administration cluster.
Governance
National Security
Foreign Service
Planning
Brianna's work falls within the governance path of the government and public administration cluster.
What is governance?It corresponds to the set of individuals, whether they are elected political representatives or workers involved in the area, whose central function is the development and execution of public policies, which are capable of directly affecting the lives of individuals.
Therefore, governance is an essential way for politics to understand the needs of individuals through the elaboration of public policies that protect their rights and increase the quality of life.
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knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning. true false
Knowledge of the needed research design allows advance planning so that the project may be conducted in less time and typically at a cost savings due to efficiencies gained in preplanning. it given statement is true.
What is research?
Research is defined as "creative and methodical work done to increase the body of knowledge." It entails the objective gathering, organisation, and analysis of data in order to improve comprehension of a subject or issue. A research project might build on prior contributions to the field. Research may duplicate portions of earlier projects or the project as a whole to verify the accuracy of instruments, processes, or experiments.
Documentation, discovery, interpretation, as well as the research and development (R&D) of systems and methods again for advancement of human knowledge are the main goals of basic research (as compared to applied research). Research methodologies are based on epistemologies, which differ greatly within and between the humanities and sciences.
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a vendor sells hotdogs at $13.00 /piece. for every hot dog he spends $12.10 in the raw material. additionally he spends $1.13 for packing each hotdog and monthly $46.00, $23.00, $13.00 as food truck rent, electricity and other expenses respectively. how much is the vendor contributing to covering his fixed costs or generating profits?
A vendor sells hotdogs at $13.00 /piece. for every hot dog he spends $12.10 in the raw material. additionally he spends $1.13 for packing each hotdog is 0.64.
In the initial stages of producing or manufacturing items, raw materials are materials or substances used. On commodity exchanges around the world, raw materials are traded as commodities. Due to the fact that raw materials are production factors, businesses trade in and out of the factor market. Raw materials are the stock or input goods that a business needs to make its goods.
Direct raw materials are those that are used directly in the manufacturing process, such as wood for a chair. Direct raw materials are utilized extensively throughout the production process but do not end up in the finished product. On the balance sheet, the value of the inventory of direct raw materials is shown as a current asset.
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which of these is not a common type of contract? group of answer choices a. firm-fixed price b. fixed price incentive fee c. cost plus incentive fee d. fixed cost fixed fee
The correct answer will be a) Firm fixed price which is not a common type of contract
A Firm-Fixed-Price (FFP) contract specifies a price that cannot be adjusted based on the contractor's cost experience in performing the contract.
This contract type imposes maximum risk and full responsibility for all costs and resulting profit or loss on the contractor. It provides the contractor with the greatest incentive to control costs and perform effectively while imposing the least amount of administrative burden on the contracting parties.
The main advantage of using a firm-fixed-price contract is that the agreed-upon price is guaranteed. The contractor assumes all risk in order to deliver within the contract price. Any overages or deviations must be borne by the contractor.
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when invested at an annual interest rate of 6% an account earned $180.00 of simple interest in one year. how much money was originally invested in account?
$3,000 was originally invested in account when invested at an annual interest rate of 6% an account earned $180.00 of simple interest in one year.
Interest paid by bank = 6%
Principle (invested) is unknown
Rate changed to decimal= 0.06
Time is 1 year
simple interest formula-
I = PRT
180= P *0.06*1
180/.06 = .06P/ .06
3,000 = P
$3,000 was originally invested in account.
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