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Lady_Fox [76]
2 years ago
11

You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5

.1 percent. What is the value of the payments today?
Business
1 answer:
bixtya [17]2 years ago
6 0

Answer:

PV= $230,148.09

Explanation:

Giving the following information:

You will receive 27 annual payments of $22,500. The first payment will be received 7 years from today and the interest rate is 5.1 percent.

First, we need to calculate the final value of the payments.  We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual pay= 22,500

n= 27

i= 0.051

FV= {22,500*[(1.051^27)-1]}/ 0.051

FV= $1,248,819.52

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 1,248,819.52/ (1.051^34)

PV= $230,148.09

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Answer:

The unit=9

Explanation:

The Cost of underage Cu= price -cost =200-0 =200 ( as there is no variable cost of the unsold room)

Cost of overage Co= cost - salvage value = 0 -(-325) =325

Service level = Cu / Cu+Co = 200/ 325+200 = 0.3809

which corresponds to the z value of -0.3

the optimum overbooking = mean + z x SD

= 10+ 3 x (-0.3) =9

8 0
2 years ago
Xena and xavier form the xx llc. xena contributes cash of $20,000, land (basis = $40,000; fair market value = $25,000), equipmen
brilliants [131]

Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.

Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.

Xena's asset basis include;

Cash = $20,000

Land basis = $40,000

Inventory basis = $30,000

Equipment basis = $0

Therefore Xena's basis in the partnership interest :

$(20,000 + 40,000 + 30,000 + 0) = $90,000

4 0
2 years ago
At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords
andrezito [222]

Answer: d. The FTC’s Red Flags Rule

Explanation:

The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.

This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.

3 0
2 years ago
Deb has found it very difficult to repay her loans. Because of these difficulties, the bank decided to forgive one of her most r
antiseptic1488 [7]

Answer:

$9,000

Explanation:

Calculation of the amount that Deb must include in her gross income

Total assets $264,000 -Remaining loans $255,000 =$9,000

Therefore the amount that Deb must include in her gross income would be $9,000. Hence a discharge of indebtedness will not be taxable in a situation where the taxpayer is insolvent before and after the debt might have been forgiveness and in a situation where the the discharge of indebtedness tend to makes the taxpayer solvent, the taxpayer will tend ro recognizes the taxable income to the extent of his solvency.

3 0
2 years ago
A service contract for a video projection system costs $70 a year. you expect to use the system for five years. instead of buyin
lukranit [14]
<span>The value of $70.00 invested each year for five years, at an annual interest rate of 3% is as follows, and assumes the interest is left in the account at the end of each year. Principal Interest balance at end of year Year 1 $ 70.00 $ 2.10 $ 72.10 Year 2 $142.10 $ 4.20 $146.30 Year 3 $216.30 $ 6.49 $222.79 Year 4 $292.79 $ 8.79 $301.58 Year 5 $371.58 $11.14 $382.72 - final value at the end of five years</span>
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