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2 years ago

What is the future value of a 500 annuity payment over wight years if interest rates are 14 percent?

Business

1 answer:

Setler [38]2 years ago

6 0

The future value of a 500 annuity payment over wight years if interest rates are 14 percent is $6,616.38.

The value of an asset at a future date is its future value. It is the present value multiplied by the accumulation function, and it estimates the nominal future sum of money that a certain amount of money is "worth" at a given point in the future under the assumption of a specific interest rate, or rate of return. The value is unadjusted for inflation or any other future-related variables that may impact the real value of money. Calculations of the time worth of money use this.

The value of money changes over time; for example, $100 now is worth less than $100 in five years. This is because $100 invested today in a stock, a bond, or any other investment will grow or decrease depending on the rate of return. Additionally, due to inflation (an increase in the purchasing price), if $100 is used to acquire an item today, it's probable that $100 won't be enough to do so in five years.

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Connolly Company produces two types of lamps, classic and fancy, with unit contribution margins of $13 and $21, respectively. Ea

Usimov [2.4K]

Answer:

$42

Explanation:

Data provided as per the requirement of contribution margin per hour of machine time is here below:-

Unit Contribution Margin = $21

Machine Time required by fancy lamp = 0.50 hours

The computation of contribution margin per hour of machine time is shown below:-

Contribution Margin Per Hour of machine time = Unit Contribution Margin ÷ Machine Time required by fancy lamp

= $21 ÷ 0.50 hours

= $42

Therefore for computing the contribution margin per hour of machine time we simply divide the unit contribution margin by machine time required by fancy lamb.

7 0

3 years ago

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common. As of January 1, 2021,

devlian [24]

Answer:

Common stock = $210,000

Preferred stock = $15,000

Additional paid in capital = $2,801,000

Treasury stock = $120,000

Retained earnings = $31,600

Explanation:

Diane's Designs has two classes of stock authorized: 8%, $10 par value preferred and $1 par value common.

As of January 1, 2021, the following accounts had the following balances: Common Stock $10,000, preferred stock $5,000, retained earnings was $9,600.

The following transactions affect stockholders' equity during 2021, its first year of operations: January 1-Dec. 31 Net Income $25,000

January 1 Issue 200,000 shares of common stock for $15 per share.

JOURNAL ENTRIES

Dr. Bank.......................3,000,000

Cr. Common stock.......................200,000

Cr. Additional Paid-in capital..2,800,000

February 6 Issue 1,000 shares of preferred stock for $11 per share.

JOURNAL ENTRIES

Dr. Bank.......................11,000

Cr. Preferred stock.......................10,000

Cr. Additional Paid-in capital.......1,000

October 10 Purchase 10,000 shares of its own common stock for $18 per share.

JOURNAL ENTRIES

Dr. Treasury Stock.......................180,000

Cr. Bank........................................................180,000

November 12 Resell 5,000 shares of treasury stock at $20 per share.

JOURNAL ENTRIES

Dr. Bank..............60,000

Cr. Treasury Stock.......................60,000

December 31 Paid dividends of $3,000

The closing balances can be computed as beginning balances + changes in the year = closing balances:

Common stock = 10,000 + 200,000 = $210,000

Preferred stock = 5,000 + 10,000 = $15,000

Additional paid in capital = 2,800,000 + 1,000 = $2,801,000

Treasury stock = 180,000 - 60,000 = $120,000

Retained earnings 9,600 + 25,000 - 3,000 = $31,600

8 0

3 years ago

13. Once a firm decides to enter an industry and chooses a market in which to compete, it must gain an understanding of its comp

Irina18 [472]

Answer: Strategic Analysis.

Explanation: Strategic analysis is the process that firms use to study and understand the many different aspects of their competitive environment. This analysis involves the process that focus on researching an organization’s business environment within which it operates. It is an essential tool in formulating strategic planning for decision making and smooth working of the business organization.

Strategic analysis refers to the process of conducting research on a company and its operating environment within which its operates to formulate a strategy. Strategic analysis helps define a strategy that will help stand out from the competitors and to also remain competitive. Another important function of strategic analysis is the prediction of future events and the planning of an alternative approach if the first fail to deliver.

4 0

3 years ago

The bank forecloses on Lisa's apartment complex. The property had been pledged as security on a nonrecourse mortgage, whose prin

skelet666 [1.2K]

Answer: $400,000

Explanation:

Based on the information given in the question, Lisa's recognized gain or loss will be calculated as the difference between the amount that's realized and the adjusted basis. This will be:

Recognized gain will be:

= Amount realized - Adjusted basis

= $900,000 - $500,000

= $400,000

There's a recognized gain of $400,000

6 0

3 years ago

Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred

masya89 [10]

Answer:

The answer is given below;

Explanation:

Preference stocks 950*50 Dr.$47,500

Paid in capital in excess of par-preference shares Dr.$ 13,300

(64-50)*950

Common Stocks 1,900*10 Cr.$19,000

Paid in capital in excess of par-common stocks Cr.$41,800

(64*950)-(1900*10)

8 0

3 years ago