Answer: $3,338.56.
Explanation:
Given, EAR = 11.4 percent =0.114
Weekly interest rate=
Growth rate of price of flowers = 3.3 % per year
Weekly growth rate=
Star Cost (C)= $6
Time period (t)= 25 years
= 25 x 52 = 1300 weeks
Required formula for growing annuity :
![PV=\dfrac{C}{r-g}[1-(\dfrac{1+g}{1+r})^t]](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7BC%7D%7Br-g%7D%5B1-%28%5Cdfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5Et%5D)
,
where C = Star cost
r = rate per period
g= growth rate
t = time period
![PV=\dfrac{6}{0.00219-0.00063}[1-(\dfrac{1+0.00063}{1+0.00219})^{1300}]\\\\=\dfrac{6}{0.00156}[1-(0.998443408934)^{1300}]\\\\=(3846.15384615)[1-0.13197471131]\\\\=(3846.15384615)(0.86802528869)\approx\$3338.56](https://tex.z-dn.net/?f=PV%3D%5Cdfrac%7B6%7D%7B0.00219-0.00063%7D%5B1-%28%5Cdfrac%7B1%2B0.00063%7D%7B1%2B0.00219%7D%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%5Cdfrac%7B6%7D%7B0.00156%7D%5B1-%280.998443408934%29%5E%7B1300%7D%5D%5C%5C%5C%5C%3D%283846.15384615%29%5B1-0.13197471131%5D%5C%5C%5C%5C%3D%283846.15384615%29%280.86802528869%29%5Capprox%5C%243338.56)
Hence, the present value of this commitment = $3,338.56.
Answer:
The correct answer is Seconds.
Explanation:
Transactions on the stock exchange have a very volatile dynamic, and the times in which the transactions are generated are usually very short due to the volume of trading that is handled. In the case of stocks taking into account the level of reputation of a stock exchange, it is very common that striking prices are managed that end up producing the movements in a minimum short time.
Answer and Explanation:
The computation is shown below;
a. For Warranty Expense
= Sales × Estimated Warranty Percentage%
= $4,144,400 × 0.87%%
= $36,056.28
b)
The amount that should be reported is
Opening Balance of Estimated Warranty Liability Jan. 1, 2019 $42,635
Less: Actual warranty costs in 2019 ($26,750)
Add: Warranty expense accrued in 2019 $35,056
Closing Balance of Estimated Warranty Liability Dec. 31, 2019 $50,941
<span>The best advice to be given to Ms. Lee in regards to the
scenario is that she has the eligibility for a SEP in which she could enrolled
in before she could even move to the location where she would likely be
residing to. With this plan, if she notified about moving earlier or in
advance, the period will only last for about two months in addition.</span>
Answer:
$1,061.28
Explanation:
We need to calculate the present value of the bond using the minimum effective rate of 7.1225%
First we calcualte the present value of an annuity of $80 for 10 years
PV = $558.72
Then we calculate the $1,000 in 10 years present value
PV = $502.57
Then we add both values
$502.57 + $558.72 = $1,061.28
This will be the present value AKA market price which yields the minimun rate of 7.1225%
