Answer:
$366,287.15
Explanation:
Annual salary = $32000
No. of years (n) = 30 years
Increment in salary = $600
Deposit rate = 10%
Interest rate (r) = 7% or 0.07
Growth rate (g) = Increment in salary \div annual salary
Growth rate = $600 \ $32000
Growth rate = 0.01875
First deposit = $32000 x 10% = $3200
Future worth = [First deposit \ (r - g)] x [(1 + r)n - (1 + g)n]
Future worth = [$3200 \ (0.07 - 0.01875)] x [(1 + 0.07)30 - (1 + 0.01875)30]
Future worth = [$3200 \ 0.05125] x [(1.07)30 - (1.01875)30]
Future worth = $62439.0243902 x [7.6122550423 - 1.7459373366]
Future worth = $62439.0243902 x 5.8663177057
Future worth = $366287.15
Hence, the future worth at retirement is $366,287.15
Answer:
a. $155,000.
Explanation:
For recording the land value in the purchaser's books we reported the value of the land at the purchase price i.e $155,000 by following up the historical cost principle that states only purchase price would be reported
The other cost is not considered because it is not relevant for recording in the purchaser books
So, the actual amount in which land is purchased would be reported i.e $155,000
Answer:
The present worth of all costs for the newly acquired machine is determined to be $131,097.89.
Explanation:
Note: See the attached excl file for the calculation of the present worth of all costs for the newly acquired machine (in bold red color).
In the attached excel file, the following formula are used:
1. From Year 6 to Year 13, Annual operating cost for the current year = Annual operating cost for the previous year * (1 + Growth rate) = = Annual operating cost for the previous year * (1 + 10%)
2. Discounting Factor = 1 / (1 + r)^n .............. (1)
r = interest rate per year = 10%, or 0.10
n = each particular year being considered
From the attache excel, the present worth of all costs for the newly acquired machine is determined to be $131,097.89.
Answer: traded on material non public information
Explanation: Material non public information refers to the information that is not made available to the general public by the firm and can influence the decision making of a general investor regrading buying or selling of the stock.
Insider trading refers to the practice in which the top level employees of an organisation trade the stock of the company on the basis of the information they possess that are not made available to the public yet.
Hence we can conclude that Brianna is liable for insider trading as she had the inside information that the dividends of the company are gonna increase.
Answer: Grid Corp. acquired some of its own common shares at a price greater than both their par value and original issue price but less than their book value. This will impact his total equity and the book value per common share.
i.e. <u><em>In this particular case Equity will decrease and book value per share will increase.</em></u>