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MArishka [77]
2 years ago
14

The present value of $121,000 expected one year from today at an interest rate (discount rate) of 10 percent per year is:_______

Business
1 answer:
Cerrena [4.2K]2 years ago
4 0

The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

<h3>What is the discount rate?</h3>
  • The discount rate is the interest rate charged to commercial banks and other financial institutions for Federal Reserve Bank short-term loans.
  • The interest rate used in discounted cash flow (DCF) analysis to assess the present value of future cash flows is referred to as the discount rate.
  • The formula for Discount Rate: First, the present value is divided by the value of a future cash flow (FV) (PV) The previous step's result is then multiplied by the reciprocal of the number of years (n) Finally, the discount rate is calculated by subtracting one from the value.
  • As an example, the present value of $121,000 projected to be received one year from today at a ten percent annual discount rate is $110,000.

Therefore, the present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is (C) $110,000.

Know more about discount rates here:

brainly.com/question/7459025

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The complete question is given below:
The present value of $121,000 expected to be received one year from today at an interest rate (discount rate) of 10% per year is:

A) $121,000

B) $100,000

C) $110,000

D) None of the above

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During the month of June, Whispering Boutique recorded cash sales of $302,810 and credit sales of $130,219, both of which includ
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Answer and Explanation:

The Journal entry is shown below:-

1. Sales revenue Dr, $28,656      ($121,700 + $287,673) × 7%

                To Sales tax payable $28,656

(Being sales tax payable is recorded)

Here we debited the sales revenue as it decreased the revenue while we credited the sales tax payable as  it increased the liabilities so that the proper posting could be done

Working note

Credit sales = $130,219 × 100 ÷ 107

= $121,700

Cash sales = $302,810 × 100 ÷ 107

= $287,673

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Answer: 11.14%

Explanation:

Buying price of bond = $936.05 -PV

Years investment held = n= 5*2

Rate of the Coupon = C = 8.4%

Frequency of payment = m= 2

Annual coupon = $1,000 × (0.084/2) = $42

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Enter N= 10, PMT = $42, PV= -$936.05$, FV = 1,048.77

Answer 5.425%

The effective annual yield can be computed as:

EAY = (1+ Quoted m)^m -1

= (1+0.054)^2 - 1

=(1.054)^2- 1

=0.1114= 11.14

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