Starship enterprises enters into the following transactions during 2016 and 2017: 2016 jan.1: purchased $100,000 face value of northern lights inc. bonds at face value. the newly issued bonds have an interest rate of 8% paid semiannually on june 30 and december 31. the bonds mature in five years. june 30: received interest on the northern lights inc. bonds. dec. 31: received interest on the northern lights inc. bonds. jan 1: sold the northern lights inc. bonds for $102,000. required: 1. prepare all necessary journal entries on starship’s records to account for its investment in the northern lights bonds. 2. why was starship able to sell its northern lights bonds for $102,000?

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?