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2 years ago

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

1 answer:

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:

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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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3 years ago

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3 years ago

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Answer:

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3 years ago

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Answer and Explanation:

1. The computation of overhead rate based on direct labor cost is shown below:-

Overhead rate = Overhead applied × 100 ÷ Direct labor cost

= 888 × 100 ÷ 1,200

= 74%

2. The Preparation of job-order cost sheet for the four jobs is shown below:

Particulars Job 86 Job 87 Job 88 Job 89

Beginning balance $6,888 $6,820

Direct materials $3,000 $7,000 $2,100 $1,500

Direct labor $800 $6,000 $900 $500

Applied overhead

is 74% of direct labor $592 $4,440 $666 $370

Total $11,280 $24,260 $3,666 $2,370

3. The computation of ending balances of Work in Process and Finished Goods is shown below:-

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= $11,280 + $2,370

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4. The computation of the Cost of Goods Sold for March is shown below:-

Cost of goods sold is

= Job 87

= $24,260

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3 years ago