Ellen purchased a dishwasher, which cost $315 before the 9.22% sales tax. she used the machine an average of 10 times per week f
1 answer:
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Answer:
$3,642.50
Explanation:
For computing the average annual amount of net income (loss), first we have to compute the net income which is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
$9,700 = $0 + Net income - ($2,420 + $0 + $1,440 + $1,010)
$9,700 = $0 + Net income - $4,870
So, the net income is
= $9,700 + $4,870
= $14,570
Now the average annual amount of net income is
=
=
= $3,642.50
Answer:
The current value of the bond is $796.04
Explanation:
The current value of a bond is the present value of all the cash inflows expected from the bond in the form of an annuity of interest payments and the term end face value payment discounted by the required rate of return or market interest rates. Thus, the current price of this bond will be,
Interest payment from the bond per year = 1000 * 0.07 = $70
The present value of ordinary annuity formula is attached in the answer.
Price = 70 * [ (1 - (1+0.14)^-4) / 0.14 ] + 1000 / (1.14)^4
Price of the bond = $796.04
