On January 1, 2024, an investor paid $315,000 for bonds with a face amount of $380,000. The stated rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2024 (assume annual interest payments and amortization)

$31,500

Explanation:

Calculation to determine how much interest income is recognized by the investor in 2024

Using this formula

Interest income=Amount paid by investor*market rate of interest

Let plug in the formula

Interest income=$315,000 × 10%

Interest income=$31,500

Therefore Using the effective interest method, how much interest income is recognized by the investor in 2024 is $31,500

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed