Answer:
- 3.21%
Explanation:
In this question, we use the PV formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
PMT = 1,000 × 5% = 50
NPER = 34 years - 1 year = 33 year
Rate of interest = 9%
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value would be $581.42
Now the return would be
= Sale price + interest - purchase price
= $581.42 + $50 - $652.39
= -$20.97
And, the total return would be
= Return ÷ purchase price
= -$20.97 ÷ $652.39
= - 3.21%
The correct answer is D. Adjusted balance method.
Adjusted balance method in termed as the method which is being used by finance companies and banks to calculate for finance charges or interest income. which is known to be associated with credit card account or bank account.
The finance waits to aggregate all the adjustments and also calculates finance charges or interest rates by the end of billing period which will depend with the ending balance.
Do you have a question about it?
Answer: See explanation
Explanation:
a. What stock price is expected 1 year from now?
This will be calculated as:
= P0 × (1 + g)
where,
P0 = $40
g = growth rate = 7%
= P0 × (1 + g)
= 40 × (1 + 7%)
= 40 × (1 + 0.07)
= 40 × 1.07
= $42.80
b. What is the required rate of return?
This will be:
= (D1 / P0) + g
where D1 = D0 × (1+g) = 1.75 × (1+0.07) = 1.75 × 1.07 = 1.8725
= (D1 / P0) + g
= (1.8725 / 40) + 0.07
= 0.1168
= 11.68%
Answer:
$14,200
Explanation:
<em>Step 1 Determine the Cost of the Patent </em>
Research and Development costs $101000
<em>Add</em> legal fees $41000
Total $142,000
<em>Step 2 Determine Amortization Expense </em>
Amortization Expense = Cost/ Useful life
= $142,000/10 years
= $14,200
