Answer:
Ans. The value today of Social Security's promise is $7,726.98
Explanation:
Hi, well, first we need to bring to year 45 all 14 cash flows, and when they are at year 45, we have to bring it to present value, discounted at 9% rate, or 0.09.
First, let´s bring to year 45 all 14 future cash flows, the formula to use is the following.
That is because the first annuity is received exactly in year 45, it should look like this.
Now we need to bring this to present value to asses the value today of Social Security's promise. For that, we use the following formula.
That is:
Best of luck.
Answer:
D. Any of the above, depending on the transactions
Explanation:
The double entry principle simply means that any accounting transaction has two records: one credit, and one debit, and it depends on the nature of the transaction, and of the accounts involved which specific value is credited and which one is debited.
For example, if a firm purchases 100$ of office supplies with cash, the credited account is cash, because cash is reduced by $100, while the office supplies account is debited by the same value.
If a firm sells 100$ of office supplies instead, the office supplies inventory is credited for this value, while the same amount of cash is debited for this same amount.
I guess the correct answer is Utility
.
The pleasure, happiness, or satisfaction obtained from consuming a good or service is known as Utility
.
Answer:
The company's income will decrease in $1,500
Explanation:
Giving the following information:
Burlington Company offers to purchase 3,000 units at $9 each. HHI will incur special shipping costs of $2.50 per unit. HHI Company $7 of variable costs.
The company has unused capacity, so we will not have into account the fixed costs.
Total variable cost= 7 + 2.5= 9.5
Selling price= 9
Marginal contribution= -0.5
Effect in income= -0.5*3000= $-1,500
Answer:
The answer is D. 7.22 percent
Explanation:
Interest payments are being made semiannually, this means it is being paid twice in a year
N(Number of periods) = 16 periods ( 8 years x 2)
I/Y(Yield to maturity) = ?
PV(present value or market price) = $987
PMT( coupon payment) = $35 ( [7 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 16; PV = -987 ; PMT = 35; FV= $1,000; CPT I/Y= 3.61
3.61 percent is the Yield-to-maturity for semiannual
Therefore, the Yield-to-maturity of the bond annually is 7.22 percent (3.61 percent x 2)