Publicity is more credible because it is less biased :)
Answer:
£718,607
Explanation:
Annuities are investment opportunities that require an initial settlement and gives a series of returns of a fixed amount for a specific number of periods.
In simple terms, the question requires us to calculate the amount to be paid today (Present Value) of an annuity that pays £80,000 per year for the next 10 years.
To establish the [Present Value of the Annuity, the future Cash Flows must be discounted to the Present Value using the appropriate discount rate. In our case, we will use the annual effective interest rate of 2%.
Present Value = PMT × [ 1 - 1/(1+r)^n ÷ r ]
Where,
PMT = £80,000
n = 10
r = 2%
Therefore,
Present Value = £80,000 × [ 1 - 1 / (1.02) ^ 10 ÷ 0.02]
= £718,606.80 or £718,607
Conclusion :
She be willing to pay £718,607 today for the annuity.
Answer:
11) 9 cantaloupes
The answer would be 9 because three cantaloupes cost 7 dollars. And 7 times 3 equals 21. Then we would need to multiply the three cantaloupes by three to get the total amount if she has 21 dollars.
12) 20 Dirhams
The answer would be 20 Dirhams because 4 of them would cost 1 dollar. And if we add 4 more dollars it would equal 5. hen we would need to multiply 4 five times to get the total amount of Dirhams with the exchange of 5 dollars.
13) 8 Bunches of fennel
The answer would be 8 bunches of fennel because it cost 9 dollars for one bunch. And if we multiply it by two then we will get 18. Then if we get 18 we will need to multiply the four bunches by 2 since one bunch cost 9 dollars and two bunches cost 18.
14) Two fruit baskets
The answer would be 2 fruit baskets because if we were to buy on fruit basket it would cost 30 dollars. And we we would buy two it would cost 60 because 30 times 2 is 60.
15) 21 dollars
If I multiply 11.1 by 4 then I would get 44.4. Then I would need to multiply 5.30 dollars by 4 too and I would get 21.2 and round it up I get 21 dollars.
16) 40 peso
If I divide 121.10 by 3 then I would get 40.36... Then I would round the number to the nearest tenth and get 40 pesos.
17) 46 in width
The height / tall of the painting would not be affected because we didn't change the tall only the width. The width however would be 46.2 rounded down to 46. Because if I add 3.3 to 42.9 then I would get 46 as the width.
18) 16 cabbage
I divided 28.80 from 1.80 and get 16.
Answer:
Explanation:
D1 = $1(1+0.25) = 1.25
D2 = $1.25(1+0.25) = 1.5625
D3 = $1.5625(1+0.25) = 1.953
D4 = $1.953(1+0.25) = $2.05
Current value = P0 =
= 1.25/(1+0.18) + 1.5625/(1+0.18)^2 + 1.953/(1+0.18)^3 + 2.05/(0.18-0.05) * (1+0.18)^(-3) =
=$12.96
Current value of the stock is 12.96
Answer: Please see explanatory column for answer.
Explanation:
No Journal entry
Date Amount and explanation Debit Credit
Jan 26 No entry No entry
Reason: this is because even though an agreement was reached in the negotiation,no transaction took place.
Journal to record loan from City Bank
Date Amount and explanation Debit Credit
March 1 Cash $350,000
Notes payable $350,000
Journal to record payment of loan with interest from City Bank from March - September.
Date Amount and explanation Debit Credit
September 1 Notes payable $350,000
Interest Expense $14,000
Cash $364,000
calculation: Interest = PxRXT= 350,000 X 8% X 6/12= $14,000
