Michelle doesn't have to see $90 worth a movie a month, and she could mostly cut that one out, if not completely. She could also see if she is able to lower her internet and/or television bill by downgrading plans.
Answer:
Explanation:
Present value of annuity due = (1+interest rate)*Annuity[1-(1+interest rate)^ -time period]/rate
=(1+0.075)*25000*[1-(1.075)^-15]/0.075
=$25000*9.489153726
=$237,228.84
Answer:
$1.7; 44 times
Explanation:
a) EPS(20X1):
= Earnings after taxes / Number of shares
= $340,000 / 200,000
= $1.7
P/E ratio(20X1):
= Price / EPS
= $74.80 / $1.7
= 44 times
EPS(20X2):
= Earnings after taxes / Number of shares
= $378,000 / 200,000
= $1.89
P/E ratio(20X2):
= Price / EPS
= $83.00 / $1.89
= 43.92 times
Answer:
If the company makes 8 deposits, one per year earning 7% per year, in order to get $375000 at the 8 year, the company has to deposit $34,874.16 each year.
Explanation:
To get this number the best option is to use a excel spreadsheet and solver add-in. In a table with 8 columns (8 years), organize the payments and the rule of interest: payment year 1*(1+7%)^8+payment year 2*(1+7%)^7+payment year 3*(1+7%)^6+payment year 4*(1+7%)^5+payment year 5*(1+7%)^4+payment year 6*(1+7%)^3+payment year 7*(1+7%)^2++payment year 8*(1+7%)^1 where all the payments are equal (payment 1=p2=p3...=P8)
