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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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The interest rate is 10% but the government offers you a subsidized perpetual loan for $1m at 5%. in other words, you get the $1
DochEvi [55]

Answer:

The worth of loan subsidy at 5% is $1000000 and at 10% is $500000.

Explanation:

The subsidized perpetual loan offer by government = $1000000

Interest rate = 5%

The amount paid for forever = $50000

Below is the calculation to find the worth of loan subsidy for forever.

Amount paid to the government for forever at 5% interest.

Total subsidy loan worth at 5% = $50000 /5% = $1000000

The subsidy loan worth at 10% = $50000 /10% = $500000

The worth of loan subsidy at 5% is $1000000 and at 10% is $500000.

3 0
1 year ago
During the current month, Grey Company transferred 60,000 units of finished production out of the Mixing Department at a cost of
denis23 [38]

Answer:

a. Finished Goods 360,000

Work in Process 360,000

Explanation:

During transfer, de-recognize the cost of finished and transferred production from the Work In Process Account of the Mixing Department (Credit) and accumulate the cost in the Finished Goods Account (Debit).

When the units are <em>finally sold</em>, Cost of Goods Sold is recognized (Debit) and the Finished Goods Account is De-recognized (Credit).

3 0
2 years ago
Imagine that your goal is to retire 34 years from today with \$1,000,000$1,000,000 in savings. Assuming that you currently (i.e.
RoseWind [281]

Answer:

Present value after 34years = 1000000

Cash flow at present= 5000

Using

PV= CF(1+R)^t

1000000=5000(1+R)^34

R=1.169-1

R=0.168(16.8%)

6 0
2 years ago
Adjust the percentages of Chris’s investments to make his portfolio with potential for high growth
Oksana_A [137]
<h2>Answer:</h2><h3><em><u>Bond: 20%</u></em></h3><h3><u><em>Mutual Fund: 15%</em></u></h3><h3><u><em>Stock: 50%</em></u></h3><h3><u><em>Savings Account: 15%</em></u></h3>

<h2>Explanation:</h2><h3><u><em>E v e r F i</em></u></h3>
3 0
2 years ago
Which of the following statements is true regarding managerial accounting​ information? A. Managerial accounting information is
Nana76 [90]

Answer:

B. Managerial accounting information emphasizes relevance.

Explanation:

Managerial Accounting information emphasizes relevance and also takes it root from financial accounting. Managers take use of the relevant financial accounting information to better manage the organization.

6 0
2 years ago
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