answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lunna [17]
2 years ago
7

A friend wants to borrow money from you. He states that he will pay you $2,700 every 6 months for 9 years with the first payment

exactly 5 years and six months from today. The interest rate is an APR of 7.3 percent with semiannual compounding. What is the value of the payments today?
Business
1 answer:
Travka [436]2 years ago
5 0

Answer:

The value of the payment today = $36,539.65

Explanation:

<em>An annuity is a series of equal payment or receipt occurring for certain number of period. </em>

<em>The payment in question is an example of an annuity .Hence the value of the payment today would be the present value of 2,700 annuity discounted at the appropriate interest rate </em>.

This is done as follows:

The Present Value of annuity = A ×  (1- (1+r)^(-n))/r

A- periodic cash flow-2,700, r- semi annual rate of interest - 7.3/2= 3.65%

n- number of period- (9×2) + 1= 19. Note that we have 19 "six months" in 9 years 6 months

PV = 2,700 × (1- (1+0.0365)^(-19))/0.0365 =36,539.650

The value of the payment today = $36,539.65

You might be interested in
Mikes Inc. has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.85 Direct labor $ 3.60 Var
marshall27 [118]

Answer:

Marginal cost: $13.70

Missing question:

Additional cost from increasing their output by one unit.

Explanation:

The company will inccur only the variable cost as the fixed cost are within the relevant range:

Direct materials $ 6.85

Direct labor $ 3.60

Variable manufacturing overhead $ 1.25

Sales commissions $ 1.50

Variable administrative expense $ 0.50

Total variable cost: $13.70

producing an additional unit will genrate marginal cost for $13.70

4 0
2 years ago
The government of a country must make a decision between increasing military spending and subsidizing wheat farmers. this kind o
ollegr [7]
The decision that must the government of a country make and choose between increasing military spending and subsidizing wheat farmers is an example of <span>a guns or butter issue.
</span>The phrase "guns or butter" refers and explains the relationship between two goods that are important for a nation's economic growth. I<span>ncreasing military spending and subsidizing wheat farmers are both important.</span>
5 0
2 years ago
Read 2 more answers
Start period 02 | 01 | 2019 End period 02 | 15 | 2019 Gross Pay $1,837.00 Earnings Taxes Deductions $1,837.00 Federal (8.24%) =
mario62 [17]

Answer:

Net Pay is equal to $1,474.19.

Explanation:

Net is Gross Pay minus taxes deductions. Therefore, Net Pay can be calculated as follows:

<u>Particulars                                                           ($)                    ($)      </u>

Gross Pay                                                                              1,837.00

<u>Taxes Deductions</u>

Federal (8.24% of Gross Pay)                        (151.37)

FICA Medicare (1.45% of Gross Pay)             (26.64)

FICA Social Security (6.20% of Gross Pay)  (113.89)

State - OK (3.86% of Gross Pay)                  <u>  (70.91)  </u>

Total                                                                                     <u>  (362.81) </u>

Net Pay                                                                               <u>  1,474.19  </u>

<u />

Therefore, Net Pay is equal to $1,474.19.

7 0
2 years ago
Getaway Travel Company reported net income for 2021 in the amount of $50,000. During 2021, Getaway declared and paid $2,000 in c
Ad libitum [116K]

Answer:

$0.53 per share

Explanation:

The computation of basic earnings per share is shown below:-

Basic earnings per share = (Net income - Preferred dividend) ÷ (Outstanding common stock)

= ($50,000 - $2,000) ÷ (40,000 × 2) + ($10,000 × 6 ÷ 12 × 2)

= $48,000 ÷ (80,0000 + $10,000)

= $48,000 ÷ $90,000

= $0.53 per share

Therefore for computing the basic earnings per share we simply applied the above formula.

7 0
2 years ago
Shelp Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.15 Direct labor $ 3
MArishka [77]

Answer:

The total amount of period costs incurred to sell 9,000 units is closest to $49,500

Explanation:

In order to calculate the total amount of period costs incurred to sell 9,000 units we would have to make the following calculation:

Total amount of period costs incurred to sell 9,000 units=Sales commissions+Variable administrative expense+Fixed selling and administrative expense

Sales commissions= 9,000*0.5=$4,500

Variable administrative expense= 9,000*0.5=$4,500

Fixed selling and administrative expense= $40,500

Total amount of period costs incurred to sell 9,000 units=$4,500+$4,500+$40,500

Total amount of period costs incurred to sell 9,000 units=$49,500

4 0
2 years ago
Other questions:
  • Which statement best describes the ideal of loyalty to one's supervisor
    14·1 answer
  • Write 3 to 5 sentences explaining which levels of production provide Alonzo’s cycling with the maximum profit
    7·2 answers
  • On January 1, 20X1, Picture Company acquired 70 percent ownership of Seven Corporation at underlying book value. The fair value
    6·1 answer
  • Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. Th
    15·1 answer
  • During 2021, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000.
    8·1 answer
  • Which of the following statements about the capital asset pricing model (CAPM), which is the "father" of the security market lin
    14·1 answer
  • Your tax client Chen asks whether it is likely that her Form 1040 will be audited this year. You suspect that Chen might modify
    9·1 answer
  • Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substi
    6·1 answer
  • . At year-end, Barr Co. had shipped $12,500 of merchandise FOB destination to Lee Co. Which company should include the $12,500 o
    8·1 answer
  • When bringing to market a new product like the MotorolaOne Zoom, the actual product launch takes place in the __________________
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!