Answer:
The present Value of the growing annuity= $1,158,092.68
Explanation:
The present value of the growing annuity is going to be computed as follows:
PV = A/(r-g) × (1- (1+g/1+r)^n)
A- annual cash flow- $87,460
g- growth rate - 6.3%
n- number of years =73
r- discount rate - 13.8%
I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity as follows.
A/(r-g) = 87,460/(0.138-0.063) =1,166,133.33
(1- (1+g/1+r)^n) = 1- (1.063/1.138)^73 =0.9931
PV = A/(r-g) × (1- (1+g/1+r)^n)
166,133.33× 0.9931 = 1,158,092.68
The present Value of the growing annuity= $1,158,092.68
Answer:
Closing statement.
Explanation:
A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place is known as a closing statement. The closing statement is a spreadsheet document that comprises of the statement of actual settlement costs and it is usually provided by a real estate agent to a home seller while the bank gives it to the home buyer.
The question incomplete! The complete question along with answer and explanation is provided below.
Question:
Eagle Life Insurance Company pays its employees $.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost of a pass. Tom, in his Mazda 2-seat Roadster, collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass.
a. What are the effects of the $100 reimbursement on Tom's and Mason's gross income?
b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is $0.30 per mile. What are Tom's and Mason's after-tax costs of commuting to and from work?
Explanation:
a.
For Tom:
He is required to include the $100 in gross income therefore, he would have to pay after-tax cost on the reimbursement.
For Mason:
He is not required to include the $100 in gross income due to qualified transportation fringe.
b.
For Tom:
Marginal tax = 24%
The after-tax cost of commuting = 0.24*$100 = $24
The before-tax cost of commuting = $0 (since he was reimbursed)
For Mason:
The after-tax cost of commuting = $0
The before-tax cost of commuting = $0 (since he was reimbursed)
Answer: See explanation
Explanation:
The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:
P = 50 + 0.1Q
Check: since Q = 100
P = 50 + 10/100Q
P = 50 + 0.1Q
To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:
Market demand = P = 200 - 0.9Q
Market Supply = P = 50 + 0.1Q
Therefore,
200 - 0.9Q = 50 + 0.1Q
200 - 50 = 0.1Q + 0.9Q
150 = Q
Equilibrium quantity = 150 units
Since P = 50 + 0.1Q
P = 50 + 0.1(150)
P = 50 + 15
P = 65
Equilibrium price is 65.
The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.
Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.
