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Citrus2011 [14]
2 years ago
7

You are comparing two annuities which offer quarterly payments of $2,500 for five years and pay 0.75 percent interest per month.

Annuity A will pay you on the first of each month while annuity B will pay you on the last day of each month. Which one of the following statements is correct concerning these two annuities?
A) These two annuities have equal present values as of today and equal future values at the end of year five.
B) These two annuities have equal present values but unequal futures values at the end of year five.
C) Annuity A has a smaller future value than annuity B.
D) Annuity B is an annuity due.
E) Annuity B has a smaller present value than annuity A.
Business
1 answer:
myrzilka [38]2 years ago
7 0

Answer:

E) Annuity B has a smaller present value than annuity A.

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity and Compounding of these values is known as the future value of annuity.

Annuity paid at the start of each period is advance annuity and paid at the end of each period is ordinary annuity.

While Calculating the present value of the annuity, the Present value of advance annuity is higher than the present value of ordinary annuity.

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Greg Downs recently has noticed that the plant he is managing is delivering only 30 percent of its products on time. To determin
strojnjashka [21]

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democratic/participative

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Zarrin [17]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price $118

Units sold 2,300

Variable costs per unit:

Direct materials $37

Direct labor $23

Variable manufacturing overhead $3

Variable selling and administrative expense $5

<u>First, we need to determine the total unitary variable cost:</u>

Unitary variable cost= 37 + 23 + 3 + 5=$68

<u>Variable cost income statement:</u>

Sales= 2,300*118= 271,400

Total variable cost= 68*2,300= (156,400)

Total contribution margin= 115,000

Fixed manufacturing overhead= (73,500)

Fixed selling and administrative expense= (29,900)

Net operating income= 11,600

5 0
2 years ago
The following selected transactions relate to cash collections for a firm that maintains a $100 change fund at all times. Presen
irakobra [83]

Answer:

a, Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                 $5,412.36

Cash Short and Over      $0.71

($5,413.07 - $5,412.36)  

Sales                                                   $5,413.07

The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.

b. Journal Entries to record transactions

Account Titles                 Debit           Credit

Cash                                $3,712.95

Cash Short and Over                            $0.79

(3,712.95 - 3,712.16)

Sales                                                      $3,712.16

7 0
1 year ago
White &amp; Checker is releasing a new power drill that requires the manufacturing of a new part.They are considering whether th
gizmo_the_mogwai [7]

Answer:

A

Explanation:

Breakeven quantity is the number of units produced and sold at which net income is zero

The product should not be released because the demand is less than breakeven quantity. If the product is released, the firm would earn losses

8 0
1 year ago
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